Note 14 - Income Taxes

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

1

4

. Income Taxes

The effective income tax rates for the

nine

months ended

September 30, 2018

and

2017

were

23.3%

and

35.3%,

respectively. The decrease in the effective income tax rate in

2018

was primarily due to a reduction of the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act (Tax Act) enacted on

December 22, 2017.

The SEC staff issued Staff Legal Bulletin

118

(SAB

118

), which provides guidance on accounting for the tax effects of the Tax Act. SAB

118

provides a measurement period that should

not

extend beyond

one

year from the Tax Act enactment date for companies to complete the accounting under ASC

740.

In accordance with SAB

118,

a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC

740

is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC

740

on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company's accounting for certain elements of the Tax Act is incomplete. However, reasonable estimates of certain effects were able to be made and, therefore, provisional adjustments were recorded in the Company’s financial statements as of, and for the period ended,

December 31, 2017.

For the

nine

months ended

September 30, 2018,

the Company recorded a

$2,500

favorable adjustment to the provisional amounts recorded in

2017

as a result of the completion of the

2017

federal income tax return. For further discussion on the impact of the Tax Act, see Item

8

(Note

13

“Income Taxes”) of the Annual Report on Form

10

-K for the year ended

December 31, 2017.