Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9.

     

Income Taxes

The following table summarizes our benefit for income taxes and our effective tax rates for the

three

and

six

months ended

June 30, 2018.

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Net loss before benefit for income taxes	$	(30,612,000	)	$	(33,982,000	)
Benefit for income taxes		3,451,000			3,451,000
Effective tax rate		11.3	%		10.2	%

For the

three

months ended

June 30, 2018,

we recorded a benefit of

$3,451,000

related to the reduction of our deferred tax liability associated with indefinite life intangible assets, which were impaired during the

three

months ended

June 30, 2018.

The entire impact of the impairment was recorded as a discrete event.

For the

six

months ended

June 30, 2018,

we recorded the same benefit for income taxes of

$3,451,000.

The Tax Cuts and Jobs Act (Jobs Act) legislation was passed in

December 2017,

which has various implications on our income tax provision accrual. The main impact of the tax reform on our provision for income taxes is the decrease in our statutory federal income tax rate from

35%

to

21%

and the change in the deferred income tax rate used in determining the ending deferred tax balances. Our estimated annual effective tax rate has been adjusted for the impact of the Jobs Act including, among other things, certain limitation on deductions and taxes on Global Intangible Low-Taxed Income (GILTI) earned by our India subsidiary. Given the complexity of the GILTI provisions, we are still evaluating their effects and as of

June 30, 2018,

we have included GILTI related to current-year operations only in our estimated annual effective tax rate and have

not

provided for additional GILTI on deferred items. The effects of other provisions of the tax reform legislation are

not

expected to have a material impact on our condensed consolidated financial statements. However, the final impact of the Jobs Act

may

differ from our estimates, due to, among other things, changes in our interpretations and assumptions, additional guidance that

may

be issued, and resulting actions we

may

take.