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Note 11 - Income Taxes
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 11 – 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 each of the three months ended June 30, 2019 and 2018, the Company recorded an income tax provision of $4.5 million. For the six months ended June 30, 2019 and 2018, the Company recorded an income tax provision of $8.7 million and $8.3 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, 2019 was 21.9 percent compared to 19.6 percent in the same period of the prior year. The effective tax rate increased by 2.3 percent for the three months ended June 30, 2019 when compared to the same period in 2018 primarily due to a decrease in tax benefits from the vesting of restricted stock and the exercise of stock options. The effective income tax rate for the six months ended June 30, 2019 was 21.5 percent compared to 18.6 percent in the same period of the prior year. The effective tax rate increased by 2.9 percent for the six months ended June 30, 2019 when compared to the same period in 2018 primarily due to a decrease in tax benefits from the vesting of restricted stock and the exercise of stock options.

 

The effective income tax rate for the six months ended June 30, 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 $4.4 million and $4.1 million as of June 30, 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.