Note 8 - Income Taxes

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8

– Income Taxes

The Company had unrecognized income tax benefits totaling

$

2.4

million as a component of accrued liabilities at

March

31,

2017

and

December

31,

2016,

the total of which, if recognized, would impact the Company’s effective tax rate. An unfavorable settlement

may

require a charge to income tax expense and a favorable resolution would be recognized as a reduction to income tax expense. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense.

No

amounts were accrued for penalties. The Company had approximately

$

145,000

accrued for the payment of interest at

March

31,

2017

and

December

31,

2016.

The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next

12

months. As of

March

31,

2017,

the tax years ended

December

31,

2013

through

2016

remained subject to audit by federal tax authorities and the tax years ended

December

31,

2012

through

2016,

remained subject to audit by state tax authorities.

In

March

2016,

the Financial Accounting Standards Board (“FASB”) issued ASU No.

2016

-

09,

“

Compensation – Stock Compensation (Topic

718),

” which changed the accounting for certain aspects of share-based payments to employees. The Company adopted the new standard on

January

 

1,

2017.

The new guidance requires excess tax benefits and tax deficiencies to be recognized as income tax benefit or expense in the income statement and presented as an operating activity in the statement of cash flows when the awards are vested or are settled. The Company recorded excess tax benefits of

$1.1

million in the

first

quarter of

2017,

which was recorded as a reduction to income tax expense in the Consolidated Statement of Income and Comprehensive Income.