Note 2 - Income Taxes

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

2. INCOME TAXES

The effective tax rate for the

three

-month period ended

June 30, 2017

decreased to

32.1%

compared to

35.2%

for the same period in

2016.

The effective tax rate for the

six

-month period ended

June 30, 2017

increased to

33.5%

compared to

33.1%

for the same period in

2016.

The decrease in the effective tax rate for the

three

-month period ending

June 30, 2017

was mainly due to a

$323,000

 increase in tax benefits from the exercise of options and dividends paid to non-vested shareholders. The increase in the effective tax rate for the

six

-month period ended

June 30, 2017

was due to increases in the estimated state tax rates as well as a greater proportion of United States income subject to higher tax rates than Canadian income, partially offset by increased tax benefits in

2017

from the exercise of options and dividends paid to non-vested shareholders.  In addition, state tax incentives decreased by

$38,000,

and, in

2016,

the United States federal tax examination adjustments decreased tax expense by

$48,000.