Note 11 - Income Taxes

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11

.

Income Taxes

The effective tax rate for the

first

quarter of

2018

was

22.8%

compared to

29.5%

for the

first

quarter of

2017.

The reduction in effective tax rate was primarily due to the Tax Cuts and Jobs Act that was enacted into law on

December 22, 2017,

which reduced the Federal corporate tax rate from

35%

to

21%

effective

January 1, 2018.

As of

December 31, 2017,

the Company had income tax refunds receivable of

$7.2

million. 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

2013.

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.