Income Taxes |
9 Months Ended |
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Sep. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes |
7. Income Taxes
BVH and its subsidiaries file a consolidated U.S. federal income tax return and income tax returns in various state and foreign jurisdictions.
Effective income tax rates for interim periods are based upon the Company’s current estimated annual rate, which varies based upon the Company’s estimate of taxable earnings or loss and the mix of taxable earnings or loss in the various states in which the Company operates. The Company’s effective tax rate was applied to income or loss before income taxes reduced by net income attributable to noncontrolling interests in joint ventures taxed as partnerships. In addition, the Company recognizes taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior period as discrete items in the interim period in which the event occurs.
The Company’s effective income tax rate for the three and nine months ended September 30, 2020 from continuing operations was (0.7)%. The effective income tax rate was different than the expected federal income tax rate of 21% due to the impact of the Company’s nondeductible executive compensation. In connection with the spin-off of BBX Capital, the Company accelerated the vesting of outstanding restricted stock awards and paid incentive bonuses which amounted to $32.6 million of nondeductible compensation.
The Company’s effective income tax rate for the three and nine months ended September 30, 2019 from continuing operations was 27%. The effective tax rate was different than the expected federal income tax rate of 21% due to the impact of nondeductible executive compensation and state income taxes. The effective tax rate for the three and nine months ended September 30, 2019 excludes the tax benefit associated with the $39.1 million Bass Pro litigation settlement, which the Company accounted for as a discrete item at the statutory income tax rate of 26%.
The Company’s effective income tax rate for the three and nine months ended September 30, 2020 from discontinued operations reflects a change in the Company’s forecasted operating results for the annual period, which resulted in the additional tax benefits recognized during the three months ended September 30, 2020.
The Company’s effective income tax rate for the three and nine months ended September 30, 2019 from discontinued operations was different than the expected federal income tax rate of 21% due to the impact of state income taxes. |