PROVISION FOR INCOME TAXES

6 Months Ended

Jun. 30, 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 June 30, 2019 and 2018, the provision for income taxes was $1.1 million and $1.0 million, respectively. As of June 30, 2019 and December 31, 2018, our remaining deferred tax assets were approximately $0.2 million and $0.3 million, respectively.

The estimated effective tax rate for the three and six months ended June 30, 2019 was approximately 14% and 17%, 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 plus the effects, if any, of certain discrete items occurring in 2019.

The estimated effective tax rate for the three and six months ended June 30, 2018 was approximately 18% and 20%, respectively, of pre-tax income reported in the period, calculated based on the estimated annual effective rate anticipated for the year ending December 31, 2018 plus the effects of certain discrete items occurring in 2018.