PROVISION FOR INCOME TAXES

3 Months Ended

Mar. 31, 2019

PROVISION FOR INCOME TAXES [Abstract]

PROVISION FOR INCOME TAXES

6. PROVISION FOR INCOME TAXES

Our deferred tax liabilities and deferred tax assets are impacted by events and transactions arising in the ordinary course of business, R&D activities, vesting of nonqualified options and other items. The provision for income taxes is based on an estimated effective tax rate derived from our consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for the fiscal year. For the three months ended March 31, 2019 and 2018, the provision for income taxes was $1.1 million in both periods. As of March 31, 2019 and December 31, 2018, our remaining deferred tax assets were approximately $0.3 million at the end of each period.

The estimated effective tax rate for the three months ended March 31, 2019 and 2018 was 20.0% and 21.3%, respectively, of pre-tax income reported in the period, calculated based on the estimated annual effective rate anticipated for the year ending December 31, 2019 and 2018  plus the effects, if any, of certain discrete items occurring in 2019 and 2018.