Note 10 - Income Taxes

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

10

– Income Taxes

The Company is subject to income tax in multiple jurisdictions and the use of estimates is required to determine the provision for income taxes. For the

three

months ended

June 30, 2017

and

2016,

the Company recorded an income tax provision of

$5.5

million and

$5.3

million, respectively. For the

six

months ended

June 30, 2017

and

2016,

the Company recorded an income tax provision of

$11.3

million and

$10.4

million, respectively. The income tax provision is based on the estimated annual effective tax rate for the year applied to pre-tax income. The effective income tax rate for the

three

months ended

June 30, 2017

was

31.2

percent compared to

32.9

percent in the same period of the prior year.

The effective income tax rate for the

six

months ended

June 30, 2017

was

31.7

percent compared to

32.7

percent in the same period of the prior year.

The effective income tax rate for the

three

and

six

months ended

June 30, 2017

differs from the U.S. federal statutory rate of

35.0

percent due primarily to the mix of income earned in domestic and foreign tax jurisdictions and deductions for which the Company qualifies.

The Company had reserves against unreco

gnized tax benefits totaling

$4.0

million and

$3.8

million at

June 30, 2017

and

December 31, 2016,

respectively, all of which, if recognized, would affect the Company’s effective tax rate. The Company recognizes interest and penalties related to income tax matters in income tax expense, and reports the liability in current or long-term income taxes payable as appropriate.