Income Taxes

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Note 10 - Income taxes

For each interim period, the Company estimates the effective tax rate (ETR) expected to be applicable for the full year and applies that rate to income before provision for income taxes for the period.   Additionally, the Company records discrete income tax items such as enacted tax rate changes and completed tax audits in the period in which they occur.

The effective tax rate for the three months ended June 30, 2016 was 27.2% compared to 54.7% for the three months ended June 30, 2015.  The effective tax rate for the six months ended June 30, 2016 was 31.3% compared to 50.6% for the six months ended June 30, 2015.   The decrease in the effective tax rates for the three and six month periods ended June 30, 2016 was due to the following items:

● During the three and six months ended June 30, 2016 we recorded an income tax benefit of $273 as a result of the favorable settlement of uncertain tax positions, which reduced the ETR for such periods by 9.2% and 6.0% respectively.

● During the three and six months ended June 30, 2015 we incurred certain operating expenses that were not fully deductible for federal income tax purposes, which increased the ETR for such periods by 12.7% and 8.6% respectively.