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Income Taxes
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 – Income Taxes

As of September 30, 2017, the Company’s unrecognized tax benefits were approximately $1,840,000, of which $1,409,000 would, if recognized, affect the Company’s effective tax rate. As of December 31, 2016, the Company’s unrecognized tax benefits were approximately $1,623,000, of which $1,225,000 would, if recognized, affect the Company’s effective tax rate. During the next 12 months, the Company may realize a reduction of its unrecognized tax benefits of approximately $226,000 due to the lapse of federal and state statutes of limitations.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company had $159,000 and $108,000 of gross interest accrued as of September 30, 2017 and December 31, 2016, respectively. There were no penalties for unrecognized tax benefits accrued at September 30, 2017 and December 31, 2016.

The Company is subject to income tax in the U.S. federal jurisdiction and numerous state jurisdictions. U.S. federal income tax returns for tax years 2014 through 2016 remain subject to examination by the Internal Revenue Service. In addition, the Company is subject to state tax examinations for the tax years 2013 through 2016.

On January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09 – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The adoption of this new accounting pronouncement resulted in a $0 and $278,000 reduction in income tax expense for the three-month and nine-month periods ending September 30, 2017, respectively.