Note 3 - Income Tax

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

3.

INCOME TAX

Our effective tax rate for the

three

and

six

-months ended

June 30

is presented below:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Effective tax rate		26.2	%		36.5	%		26.5	%		32.0	%

Our effective tax rate differs from the federal statutory rate primarily due to state income tax expense and timing of our deferred tax position, particularly in fixed assets. In addition, to a lesser extent, our effective tax rate is impacted by the new global intangible low-taxed income tax (“GILTI”) for our estimated foreign earnings. GILTI was established as part of the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted on

December 22, 2017.

The Tax Act also reduced the federal statutory rate from

35%

in

2017

to

21%

in

2018.

We have

not

fully completed our accounting for the income tax effects of the Tax Act. As discussed in the SEC Staff Accounting Bulletin

No.

118,

the accounting for the Tax Act should be completed within

one

year from the Tax Act enactment. During the

three

and

six

months ended

June 30, 2018,

we have made

no

adjustments to the provisional amounts recorded at

December 31, 2017.

Any adjustments to the provisional amounts recorded at

December 31, 2017

will be reflected upon the completion of our accounting for the Tax Act.

For the

six

months ended

June 30, 2018,

we also recorded an estimate of

$19,794

for GILTI related to our estimated foreign earnings. This tax has been included as part of our current provision as a period cost, and we have

not

recognized any deferred GILTI provision as we do

not

expect that basis differences would be significant. This GILTI tax was created as part of the Tax Act. Accordingly, there was

no

such provision during the same period in

2017.