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Note 14 - Income Taxes
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
14
– Income Taxes
 
The income tax provision for the
three
months ended
September 30, 2018
is
$1,700,000
(an effective income tax rate of
7.5%
). The income tax provision for the
three
months ended
September 30, 2017
was
$4,691,000
(an effective income tax rate of
29.5%
). The income tax provision and effective tax rate for the
three
months ended
September 30, 2018
was favorably impacted by the following: (
1
) a tax benefit of
$547,000
related to the gain on acquisition of equity method investment; (
2
) a tax benefit of
$2,222,000
related to statute of limitation expirations; and (
3
) a tax benefit of
$1,434,000
related to a provision to return adjustment on the Company’s
2017
federal and state income tax returns, resulting in a net decrease in the provision.
 
The income tax provision for the
nine
months ended
September 30, 2018
is
$9,792,000
(an effective income tax rate of
19.5%
). The income tax provision and effective tax rate for the
nine
months ended
September 30, 2018
were unfavorably impacted by nondeductible expenses of
$945,000
(primarily the non-deductible portion of the settlement of the Caris HealthCare, L.P. Qui Tam legal matter) or
1.9%
of income before taxes for the
nine
months. The income tax provision for the
nine
months ended
September 30, 2018
was favorably impacted by the following: (
1
) a tax benefit of
$547,000
related to the gain on acquisition of equity method investment; (
2
) a tax benefit of
$2,222,000
related to statute of limitation expirations; and (
3
) a tax benefit of
$1,434,000
related to a provision to return adjustment on the Company’s
2017
federal and state income tax returns. The income tax provision for the
nine
months ended
September 30, 2017
was
$19,448,000
(an effective income tax rate of
36.1%
). The income tax provision and effective tax rate for the
nine
months ended
September 30, 2017
were favorably impacted by statute of limitations expirations resulting in a benefit to the provision of
$1,753,000
or
3.3%
of income before taxes in
2017.
 
On
December 22, 2017,
the Tax Cuts and Jobs Act of
2017
(
"2017
Tax Act") was signed into law making significant changes to the Internal Revenue Code.  The SEC issued Staff Accounting Bulletin
No.
118
("SAB
118"
), which provides guidance on accounting for the tax effects of the
2017
Tax Act.  As of
December 31, 2017,
we made a reasonable estimate that the revaluation of our net deferred tax liability using the new federal corporate tax rates resulted in a provisional net tax benefit of
$8,488,000,
which reduced our net deferred tax liability balance.  This amount continues to be a provisional adjustment as of
September 30, 2018. 
We will recognize any changes to provisional amounts as we continue to analyze the existing statute or as additional guidance becomes available.  We expect to complete our analysis of the provisional amounts by the end of
2018.
  
 
Interest and penalties expense related to U.S. federal and state income tax returns are included within income tax expense.
 
The Company is
no
longer subject to U.S. federal and state examinations by tax authorities for years before
2015
(with certain state exceptions).