Note 3 - Income Taxes

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

3.

INCOME TAX

Our effective tax rate for the

three

months ended

March 31, 2018

was

27%,

compared to

28%

for the same period in

2017.

Our effective tax rate differs from the federal statutory rate primarily due to state income tax expense and timing of our deferred tax position, particularly in fixed assets. The federal statutory rate was reduced from

35%

in

2017

to

21%

in

2018

due to the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted on

December 22, 2017.

We have

not

fully completed our accounting for the income tax effects of the Tax Act. As discussed in the SEC Staff Accounting Bulletin

No.

118,

the accounting for the Tax Act should be completed within

one

year from the Tax Act enactment. During the

three

months ended

March 31, 2018,

we have made

no

adjustments to the provisional amounts recorded at

December 31, 2017.

Any adjustments to the provisional amounts recorded at

December 31, 2017

will be reflected upon the completion of our accounting for the Tax Act.

In the

first

quarter of

2018,

we also recorded an estimate of

$6,540

for the global intangible low-taxed income tax (“GILTI”) for our estimated foreign earnings.  This tax has been included as part of our current provision as a period cost, and we have

not

recognized any deferred GILTI provision as we do

not

expect that basis differences would be significant.  This GILTI tax was created as part of the Tax Act.  Accordingly, there was

no

such provision during the

first

quarter of

2017.