Note 14 - Income Taxes |
9 Months Ended |
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Sep. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 14 – Income TaxesThe 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). |