Note 2 - Income Taxes

3 Months Ended

Mar. 31, 2012

Income Tax Disclosure [Text Block]

2.           INCOME TAXES

The Company’s effective tax rate decreased to 35.1% for the three-month period ended March 31, 2012, compared to 37.2% for the same period in 2011.  The effective tax rate for the three-month period ended March 31, 2012, is lower than the rate in same period of 2011 primarily due to the recording of federal tax credits of $111,000 in the 2012 quarter, as well as a reduction in the Canadian statutory tax rates.

The unrecognized tax benefit as of March 31, 2012, was $303,000, excluding interest of $20,000 and no penalties.  The full unrecognized tax benefits, if recognized, would favorably impact the effective income tax rate.  The Company believes it is reasonably possible that the total amount of unrecognized tax benefits could continue to decrease during the next 12 months due to the expiration of the U.S. federal statute of limitations associated with certain other tax positions.  The Company accrues interest and penalties related to uncertain tax position in the statements of income as income tax expense.