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Note 9 - Income Taxes
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
9.     
     
Income Taxes
:
 
Our quarterly tax provision and our quarterly estimate of our annual effective tax rate is subject to significant volatility due to several factors, including variability in accurately predicting our income before taxes and taxable income and loss and the mix of jurisdictions to which they relate, changes in law and relative changes of expenses or losses for which tax benefits are not recognized.  Additionally, our effective tax rate can be more or less volatile based on the amount of income before taxes.  For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our income before taxes is lower. 
 
An income tax provision of $0.5 million on loss before taxes of $1.3 million was recorded for the three months ended September 30, 2016 resulting in an effective tax rate of negative 36.4%, compared to an income tax benefit of $0.4 million on loss before taxes of $1.0 million, or 42.3% for the three months ended September 30, 2015.  The tax provision recorded for the three months ended September 30, 2016 is primarily a result of an increase in tax expense from state and local income taxes applied against forecasted income for 2016 and discrete tax expense recorded during the third quarter of 2016, applied against a net loss for the quarter.
 
For the nine months ended September 30, 2016, the Company recorded an income tax provision of $3.4 million, or 77.0% of income before taxes, compared to an income tax benefit of $3.4 million, or 13.5%, for the nine months ended September 30, 2015.  Through the nine months ended September 30, 2016, the Company recorded a valuation allowance of $0.8 million to reduce certain state deferred tax assets to the amount that is more likely than not to be realized.  The valuation allowance increased the Company’s effective tax rate by 18.3% for the nine months ended September 30, 2016.  During the nine months ended September 30, 2015, the Company recorded a $16.5 million goodwill impairment charge pertaining to its tubular and pipe products segment.  This non-deductible impairment charge reduced the Company’s effective tax rate by 25.3% for the nine months ended September 30, 2015. 
 
Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items that are taken into account in the relevant period.  Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.