Note 8 - Income Taxes

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

8

 –

Income Taxes:

The Company calculates its interim income tax provision in accordance with the accounting guidance for income taxes in interim periods. At the end of each interim period, the Company makes its best estimate of the annual expected effective tax rate and applies that rate to its ordinary year-to-date income or loss. The tax expense or benefit related to significant, unusual, or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur.

The computation of the annual expected effective tax rate at each interim period requires certain estimates and assumptions including, but

not

limited to, the expected operating income for the year and permanent and temporary differences. The accounting estimates used to compute the provision for income taxes

may

change as new events occur, additional information is obtained or the tax environment changes.

For the

three

months ended

March 31, 2020

, the Company recorded a provision for income taxes of $

1.3

 million, which represents an effective tax rate of

27.1%

. For the

three

months ended

March 31, 2019

, the Company recorded a provision for income taxes of $

0.6

 million, which represents an effective tax rate of

20.2%

. The increase in the effective tax rate was primarily driven by rate increases of

3.7%

for foreign taxes,

0.9%

for state income taxes and

1.6%

for non-deductible losses recognized on assets associated with the Company’s Non-Qualified Deferred Compensation Plan.