Note 8 - Income Taxes

3 Months Ended

Mar. 31, 2019

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, 2019

and

December 31, 2018,

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. The Company had approximately

$

139,000

accrued for the payment of interest at

March 31, 2019

and

December 31, 2018.

No

amounts were accrued for penalties.

The Company does

not

anticipate a significant change in the amount of unrecognized tax benefits in the next

12

months. As of

March 31, 2019,

the tax years ended

December 31, 2015

through

2018

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

December 31, 2014

through

2018

remain subject to audit by state tax authorities.

The Company adopted ASU

2016

-

09

on

January 

1,

2017,

which 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. In the

first

quarter of

2019,

the Company recorded

$76,000

of tax expense related to an excess tax deficiency with respect to equity compensation. In the

first

quarter of

2018,

the Company recorded

$22,000

of tax expense related to an excess tax deficiency with respect to equity compensation.