|3 Months Ended|
Mar. 31, 2018
|Income Taxes [Abstract]|
10. Income Taxes
BBX Capital and its subsidiaries file a consolidated federal income tax return and income tax returns in various state and foreign jurisdictions. The Company’s effective income tax rate was 33% during the three months ended March 31, 2018 compared to 42% during the same period in 2017. The reduction in the effective income tax rate for the three months ended March 31, 2018 compared to the same period in 2017 reflects the reduction in the federal corporate tax rate from 35% to 21% commencing on January 1, 2018 based on the enactment of the Tax Cuts and Jobs Act on December 22, 2017, partially offset by limitations in the deductibility of executive compensation. The Company’s effective tax rate was applied to income before income taxes reduced by net income attributable to non-controlling interests for joint ventures taxed as partnerships.
Effective income tax rates for interim periods are based upon the Company’s current estimated annual rate. The Company’s annual effective income tax rate varies based upon the estimate of taxable earnings as well as the mix of taxable earnings in the various states in which the Company operates.
The Company recorded a provisional tax benefit of $45.3 million for the impact of the Tax Cuts and Jobs Act in its Consolidated Statements of Operations for the year ended December 31, 2017. This tax benefit was comprised of the remeasurement of the Company’s federal net deferred tax liabilities resulting from the permanent reduction in the corporate tax rate from 35% to 21%. The impact of the Tax Cuts and Jobs Act may differ, possibly materially, from the provisional amounts recorded due to among other things, additional analysis, changes in interpretations and assumptions made by the Company, and additional regulatory guidance that may be issued. Any such revisions will be treated in accordance with the measurement period guidance outlined in SAB 118 and ASU 2018-05. As such, the Company expects to complete its analysis no later than December 2018.
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/presentationRef