Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Income Taxes

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Note 9 - Income Taxes
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
9.
Income Taxes 
 
Tax Expense and Tax Rate.
 Income tax expense for the
three
months ended
March 31, 2020 
and
2019
 was
$6.5
 million and
$0.2
 million, respectively.  For the
three
months ended
March 31, 2020,
our effective tax rate primarily differed from the statutory Federal tax rate for adjustments recorded related to the enactment of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) on
March 27, 2020. 
The CARES Act modified certain income tax statutes, including changes related to the business interest expense limitation under Code Section
163
(j).  For the
three
months ended
March 31, 2019, 
immaterial deferred income tax expense was recorded due to dollar-for-dollar offsets by our valuation allowance.  Our effective tax rate was
9.0%
for the
three
months ended
March 31, 2020
and was
not
meaningful for the
three
months ended
March 31, 2019.  
 
Valuation Allowance. 
Deferred tax assets are recorded related to net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods.  The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions in which those temporary differences or net operating losses are deductible.   In assessing the need for a valuation allowance on our deferred tax assets, we consider whether it is more likely than
not
that some portion or all of them will
not
be realized.     
 
As of
March 31, 2020
and
December 31, 2019,
our valuation allowance was
$47.8
 million and
$54.4
 million, respectively, and relates primarily to state net operating losses and the disallowed interest limitation carryover. 
 
Income Taxes Receivable. 
As of
March 31, 2020
and
December 31, 2019,
we had current income taxes receivable of 
$1.9
million, which relates primarily to a net operating loss  (“NOL”) carryback claim for
2017
that was carried back to prior years. 
 
During the
three
months ended
March 31, 2020
and
2019,
we did
not
receive any income tax claims or make any income tax payments of significance.
 
The tax years
2016
 through
2019
 remain open to examination by the tax jurisdictions to which we are subject.