Note 15 - Income Tax

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(15) Income Taxes

The determination of income tax expense in the accompanying unaudited condensed consolidated statements of income is based upon the estimated effective tax rate for the year, adjusted for the impact of any discrete items which are accounted for in the period in which they occur. The Company recorded income tax expense of approximately 17.3% and 22.6% of income before income tax expense for the three-month periods ended September 30, 2023 and 2022, respectively. The Company recorded income tax expense of approximately 20.7% and 22.4% of income before income tax expense for the nine-month periods ended September 30, 2023 and 2022, respectively. The Company has recorded offsetting discrete tax adjustments, for the nine-month periods ended September 30, 2023, related to windfall tax benefits on stock-based compensation agreements, tax benefits related to federal tax amendments, and increase in tax reserves for R&D credits taken in prior years. The effective tax rate anticipated for the year differs from the federal statutory rate of 21% due to favorable rates in foreign countries, federal deductions available for certain exported goods and anticipated federal credits, offset by state income taxes and disallowed compensation under section 162M.