Note 5 - Income Taxes
|9 Months Ended|
Sep. 30, 2018
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate on continuing operations for the
September 30, 2018:
December 31, 2017,the Company's net operating loss carryforwards excluded potential tax benefits of
$3.9million as a result of uncertainty regarding interpretation of the new U.S. tax legislation signed into law on
December 22, 2017.Subsequent guidance has confirmed that the Company should recognize the tax benefits of
$3.9million and therefore, for the
ninemonths ending September
2018,the Company removed the valuation allowance previously established against the net operating loss carryforwards.
During the preparation of the
2017federal income tax return in the
2018,the Company realized management overestimated the available foreign taxes that could be credited against the
2017transition tax. This resulted in an additional tax liability of
$3.4million on its
2017federal income tax return. This additional liability was recorded as a return-to-provision adjustment to tax expense during the
September 30, 2018.Upon assessing the out of period adjustment from both a quantitative and qualitative perspective, the Company believes that this out of period adjustment is immaterial to both the year ended
December 31, 2017and the
September 30, 2018financial statements.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef