Note 4 - Income Taxes

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

4

- INCOME TAXES

The Company

’s effective tax rate for each of the

three

and

six

month periods ended

June 30, 2017

and

2016

was

40.0%

and

37.2%,

and

36.3%

and

36.7%,

respectively.

The Company is subject to federal income taxes in the U.S.

as well as to taxes in various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company’s

2013

through

2016

tax years remain subject to examination by the Internal Revenue Service for federal tax purposes. Certain significant state and foreign tax returns also remain open under the applicable statute of limitations and are subject to examination for the tax years from

2013

to

2016.

The Company

’s total liability for unrecognized tax benefits as of

June 30, 2017

was

$1.2

million. Included in the balance as of

June 30, 2017

was

$1.0

million of tax positions that, if recognized, would have a favorable impact on the Company’s effective tax rate. The Company believes it is reasonably possible that, during the next

12

months, the Company’s liability for uncertain tax benefits

may

decrease by approximately

$0.4

million.

The Company

’s policy is

not

to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. The Company has made

no

provision for deferred U.S. income taxes or additional foreign taxes on future unremitted earnings of its controlled foreign subsidiaries because the Company considers these earnings to be permanently invested.