Note 11 - Income Taxes

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

1

1

– 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

March 31, 2019

and

2018,

the Company recorded an income tax provision of

$4.2

 million and

$3.9

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

March 31, 2019

was

21.1

 percent compared to

17.6

percent in the same period of the prior year. The effective tax rate increased by

3.5

percent for the

three

months ended

March 31, 2019

when compared to the same period in

2018

primarily due to a decrease for tax benefits from the vesting of restricted stock and exercise of stock options.

The effective income tax rate for the

three

months ended

March 31, 2019

differs from the U.S. federal statutory rate of

21.0

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 unrecognized tax benefits totaling

$4.3

million and

$4.1

million as of

March 31, 2019

and

December 31, 2018,

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.