|6 Months Ended|
Jun. 30, 2022
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
NOTE 10 — INCOME TAXES
Tax Benefit and Tax Rate
For the three months ended June 30, 2022, the Company recognized income tax expense of $31.1 million for an effective tax rate of 20.1%. For the three months ended June 30, 2021, the Company recognized income tax benefit of $12.7 million for an effective tax rate of 19.8%.
For the six months ended June 30, 2022, the Company recognized income tax expense of $30.4 million for an effective tax rate of 20.1%. For the six months ended June 30, 2021, the Company recognized income tax benefit of $12.9 million for an effective tax rate of 19.8%.
For the three and six months ended June 30, 2022 and 2021, the Company’s effective tax rate differed from the statutory Federal tax rate primarily by the impact of state income taxes and adjustments to our 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 deferred tax assets, the Company considers whether it is more likely than not that some portion or all of them will not be realized.
As of June 30, 2022 and December 31, 2021, the valuation allowance was $15.7 million and $24.4 million, respectively, and relates primarily to state net operating losses and the disallowed interest expense limitation carryover.
Income Taxes Receivable, Refunds and Payments
As of June 30, 2022 and December 31, 2021, the Company did not have any outstanding current income taxes receivable. During the six months ended June 30, 2022 and June 30, 2021, the Company did not receive any income tax refunds or make any income tax payments of significance.
The tax years 2018 through 2021 remain open to examination by the tax jurisdictions to which the Company is subject.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef