|12 Months Ended|
Dec. 31, 2020
|Income Tax Disclosure [Abstract]|
9. INCOME TAXES
Income before income tax expense (benefit) and equity in losses of 50% or less owned companies derived from U.S. and foreign companies for the years ended December 31, were as follows (in thousands):
The Company files a consolidated U.S. federal tax return. The components of income tax expense (benefit) for the years ended December 31, were as follows (in thousands):
The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate for the years ended December 31,:
On March 27, 2020, the U.S. Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") into law to address the economic fallout of the 2020 COVID-19 pandemic. One provision of the CARES Act increases the tax deduction for net operating losses from 80% to 100% for 2018 through 2020, allows net operating losses generated in 2018 through 2020 to be carried back up to five years and increases the deductible interest expense limit from 30% to 50% of taxable EBITDA. As a result of these statutory changes, during the twelve months ended December 31, 2020, the Company determined it will be able to carry its 2019 net operating losses back to tax years when the statutory tax rate was 35% resulting in an income tax benefit of $13.0 million, which is included in income tax expense (benefit) in the accompanying consolidated statements of income.
As of December 31, 2020, $32.7 million of income tax receivables are included in other receivables in the accompanying condensed consolidated balance sheets.
The components of the net deferred income tax liabilities for the years ended December 31, were as follows (in thousands):
During the year ended December 31, 2020, the Company increased its valuation allowance for state net operating loss carryforwards from $4.2 million to $4.8 million. The Company's capital loss carryforwards expire in 2024.
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