|3 Months Ended|
Mar. 31, 2020
|Income Tax Disclosure [Abstract]|
We recognized a federal and state income tax expense for the three months ended March 31, 2020 at the blended rate of 21.7%. The federal and state tax expense was offset by an adjustment to the valuation allowance against our net deferred tax assets resulting in an effective tax rate of 0.7%, which is fully attributable to the State of Texas. The provision also reflects a reclassification of $1.2 million from deferred tax assets to the current income tax receivable for our remaining refundable alternative minimum tax (“AMT”) credit carryforwards that were accelerated due to certain income tax provisions provided in the CARES Act. As of March 31, 2020, we have a receivable of $2.5 million for the aforementioned AMT credit carryforwards for which we have applied for an immediate refund in April 2020. Our net deferred income tax liability balance of $3.7 million as of March 31, 2020 is fully attributable to the State of Texas and primarily related to property and equipment.
We recognized a federal and state income tax benefit for the three months ended March 31, 2019 at the blended rate of 21.6%; however, the federal and state tax expense was offset by an adjustment to the valuation allowance against our net deferred tax assets resulting in an effective tax rate of less than 0.1%.
We had no liability for unrecognized tax benefits as of March 31, 2020. There were no interest and penalty charges recognized during the periods ended March 31, 2020 and 2019. Tax years from 2015 forward remain open to examination by the major taxing jurisdictions to which the Company is subject; however, net operating losses originating in prior years are subject to examination when utilized.
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://fasb.org/us-gaap/role/ref/legacyRef