Note 11 - Income Taxes

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

1

1.

Income Taxes

The effective tax rate for

the

third

quarter of

2017

was

41.4%

compared to

25.5%

for the

third

quarter of

2016.

The

third

quarter

2017

effective tax rate of

41.4%

reflected additional tax expense to increase the full year effective tax rate to

34%

compared to the

29%

effective tax rate forecasted at

June 30, 2017.

This adjustment in the

third

quarter was the result of lower tax credits from the slow deployment of alternative energy investments. Income tax expense for the

first

quarter of

2017

was also reduced by

$2.6

million in benefits from the distribution of restricted stock units and exercises of stock options.

As of

September 30, 2017

and

December 31, 2016,

the Company had income tax refunds receivable of

$19.4

million and

$14.6

million, respectively. These income tax receivables are included in other assets in the accompanying condensed consolidated balance sheets.

The Company

’s tax returns are open for audit by the Internal Revenue Service back to

2014

and by the California Franchise Tax Board back to

2012.

As the Company is presently under audit by a number of tax authorities, it is reasonably possible that unrecognized tax benefits could change significantly over the next

twelve

months. The Company does

not

expect that any such changes would have a material impact on its annual effective tax rate.