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Income Taxes
9 Months Ended
Sep. 30, 2019
Income Taxes  
Income Taxes

8. Income Taxes

The U.S. federal statutory tax rate was 21% for the three and nine  months ended September 30, 2019 and 2018. The Company’s effective tax rate for the three and nine months ended September 30, 2019 was 26.4% and 27.2%, respectively, of pretax income compared to the effective tax rate for the three and nine months ended September 30, 2018 of 26.6% and 28.0%, respectively.

The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three and nine months ended September 30, 2019 was primarily due to state income taxes offset by the impact of the Company’s noncontrolling interest.

The difference between the U.S. federal statutory tax rate and the Company’s effective tax rate for the three months ended September 30, 2018, was primarily due to state income taxes and, for the nine months ended September 30, 2018, the difference was primarily due to state income taxes and the inability to utilize losses experienced in certain Canadian operations.

The Company had unrecognized tax benefits of approximately $0.2 million and $0.4 million as of September 30, 2019 and December 31, 2018, respectively, which were included in other liabilities in the accompanying consolidated balance sheets.

The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense related to unrecognized tax benefits was not significant for the three and nine months ended September 30, 2019 and 2018.

The Company is subject to taxation in various jurisdictions. The Company's 2017 and 2018 tax returns are subject to examination by U.S. federal authorities. The Company’s tax returns are subject to examination by various state authorities for the years 2015 through 2018.