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Note 10 - Income Taxes
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
(
10
)
Income Taxes
 
The income tax expense included in the accompanying unaudited condensed consolidated statements of income principally relates to the Company’s proportionate share of the pre-tax income of its wholly-owned subsidiaries. The determination of income tax expense for interim reporting purposes 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 tax expense of approximately
33.6%
and
35.0%
of income before income tax expense, respectively, for each of the
three
-month periods ended
September 30, 2017
and
2016.
The decrease in the effective tax rate for the current period is due to a tax benefit of approximately
$37,000
recorded in the
three
-month period ended
September 30, 2017
as a result of the adoption of ASU
No.
2016
-
09
on
January 1, 2017 (
See Note
1
). The Company recorded a tax expense of approximately
33.3%
and
35.4%
of income before income tax expense for each of the
nine
-month periods ended
September 30, 2017
and
2016.
The decrease in the effective tax rate for the current period is due to a tax benefit of approximately
$162,000
recorded in the
nine
-month period ended
September 30, 2017
as a result of the adoption of ASU
No.
2016
-
09
on
January 1, 2017 (
See Note
1
); and a tax assessment of approximately
$40,000
from
one
jurisdiction recorded in the
first
quarter of
2016.
The Company notes the potential for volatility in its effective tax rate, as any windfall or shortfall tax benefits related to its share-based compensation plans will be recorded directly into income tax expense.