Note 14 - Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
14. Income Taxes: The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter.
During the three months ended September 30, 2025 and 2024, the Company recorded a provision for income taxes of $1.6 million and $1.7 million, respectively. The effective tax rate for the three months ended September 30, 2025 and 2024 was 25.5% and 23.3%, respectively. During the nine months ended September 30, 2025 and 2024, the Company recorded a provision for income taxes of $3.9 million and $3.6 million, respectively. The effective tax rate for the nine months ended September 30, 2025 and 2024 was 21.6% and 23.5%, respectively. The change in effective tax rate for the three and nine months ended September 30, 2025, compared to the same period in the prior year was primarily impacted by a discrete item for the recognition of excess tax benefits related to share-based compensation in income tax expense, changes in the mix of jurisdictions in which taxable income was earned, as well as limitations on the deductibility of certain executive compensation amounts during both periods. The recognition of excess tax benefit related to share-based compensation in income tax expense resulted in a net tax benefit of $0.1 million and $0.8 million, respectively, which reduced our effective tax rate by 1.9% and 4.6% during the three and nine months ended September 30, 2025.
The One Big Beautiful Bill Act was enacted on July 4, 2025. The Company is evaluating the impacts of the newly enacted legislation and does not expect it to have a material impact on its effective tax rate or cash flows in the current year. |