Note 8 - Income Taxes

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8 . Income Taxes

Our effective income tax rate was

22.7%

for the

three

months ended

March 31, 2019,

compared to

26.0%

for the

three

months ended

March 31, 2018.

In determining our quarterly provision for income taxes, we use an estimated annual effective tax rate, adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, best estimate of nontaxable and nondeductible items of income and expense, and the ultimate outcome of tax audits. Our effective income tax rate for the

first

quarter

2019

included the effect of a favorable settlement of a state income tax audit.

At

March 31, 2019,

we had a total of

$49.5

million in gross unrecognized tax benefits, which are a component of other long-term liabilities in our Condensed Consolidated Balance Sheets. Of this amount,

$40.9

million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was

$5.3

million at

March 31, 2019.