INCOME TAXES

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

6. INCOME TAXES

The company prepared the provision following the guidance of FASB ASC 740, Income Taxes, using the estimated annual effective tax rate applied to the operating results of the company as of March 31, 2017. This rate does not include items related to significant unusual or extraordinary items that would be required to be separately reported or reported net of their related tax effect in the consolidated financial statements. At the end of each interim period the company makes its best estimate of the effective tax rate expected to be applicable for the full year. There were no discrete items during this quarter; therefore, the effective rate was the same rate that was used for the year ended December 31, 2016.  The consolidated effective tax rate was zero for the three months ended March 31, 2017 and 2016. In addition, the company had a taxable loss in each of the quarterly periods ended March 31, 2017 and 2016, and accordingly did not have an income tax liability in either of those periods.