Note 12 - Income Taxes

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

12.

      INCOME TAXES

The Company’s effective tax rate was

22.4%

and

34.5%

for the

three

months ended

September 30, 2018

and

2017,

respectively, and

21.6%

and

36.8%

for the

nine

months ended

September 30, 2018

and

2017,

respectively. The decrease in the effective tax rate for the

three

months ended

September 30, 2018

compared to the same quarter in the prior year primarily relates to a reduction in the Federal corporate income tax rate from

35%

to

21%

as a result of the

2017

Federal tax reform legislation and

$1.3

million of income tax benefits attributable to state effective tax rate changes recorded during the

three

months ended

September 30, 2018.

The decrease in the effective tax rate for the

nine

months ended

September 30, 2018

compared to the prior year period was further impacted by

$2.9

million of income tax benefits attributable to equity-based compensation awards recorded during the

nine

months ended

September 30, 2018.

The Company recognized the income tax effects of the

2017

Federal tax reform legislation in its consolidated financial statements included in the

2017

Form

10

-K in accordance with Staff Accounting Bulletin

No.

118,

which provides SEC staff guidance for the application of ASC

740

–

Income Taxes

. As such, the Company’s financial results for

2017

reflected the income tax effects of the

2017

Federal tax reform legislation for which the accounting under ASC

740

was complete as well as provisional amounts for those specific income tax effects of the

2017

Federal tax reform legislation for which the accounting under ASC

740

was incomplete but a reasonable estimate could be determined. The Company has recognized the provisional tax impacts related to acceleration of depreciation and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements included in the

2017

Form

10

-K. The accounting was completed when the Company’s

2017

Federal corporate income tax return was filed in

October 2018.