Note 15 - Income Taxes

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 15 – Income Taxes

The Company's income tax benefit as a percentage of our income before income taxes was 26.8% and 53.6% for the three months ended September 30, 2022 and 2021, respectively.

The Company's income tax provision as a percentage of our income before income taxes was 27.3% and 4.6% for the nine months ended September 30, 2022 and 2021, respectively. 

Typically, these percentages vary from the U.S. federal statutory income tax rate of 21% primarily due to state income taxes, excess tax benefits from stock-based compensation, benefits resulting from the lapsing of statute of limitations of items in our tax contingency reserve, and non-deductible expenses. The tax benefit related to the statute of limitation expirations was $437,000 for the three and nine months ended September 30, 2022. The tax benefit related to the statute of limitation expirations was $1,444,000 for the three and nine months ended September 30, 2021. For the nine months ended September 30, 2021, the income tax provision and effective tax rate were favorably impacted by the nontaxable gain recognized upon re-measurement of our existing equity investment in Caris Healthcare, L.P.

Our quarterly income tax provision, and our estimate of our annual effective income tax rate, is subject to variation due to several factors, including volatility based on the amount of pre-tax income or loss.  

The Company is no longer subject to U.S. federal and state examinations by tax authorities for years before 2019 (with certain state exceptions).