|9 Months Ended|
Sep. 30, 2019
|Income Tax Disclosure [Abstract]|
The Company had income tax expense of $55,000 and income tax benefit of $1,342,000 for continuing operations for the three months ended September 30, 2019 and 2018, respectively and income tax expense of $99,000 and income tax benefit of $1,272,000 for the nine months ended September 30, 2019 and 2018, respectively. Our effective tax rates were approximately 2.8% and 130.9% for the three months ended September 30, 2019 and 2018, respectively, and 5.4% and 1,479.1% for the nine months ended September 30, 2019 and 2018, respectively. The Company’s tax rate for each periods discussed above was impacted by the Company’s full valuation on its net deferred tax assets. Additionally, during the third quarter of 2018, the Company recorded a tax benefit in the amount of approximately $1,380,000 resulting from the release of a portion of the valuation allowance on deferred tax assets related to indefinite-lived net operating losses generated due to the closure of our M&EC facility. The small tax expense for the third quarter of 2019 was comprised of state tax expense for separate company filing states and the increase in the deferred tax liability related to the amortization of indefinite lived intangible assets.
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