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INCOME TAXES
3 Months Ended
Mar. 31, 2016
INCOME TAXES  
INCOME TAXES

 

NOTE 6—INCOME TAXES

 

The Company’s effective tax rate for the three months ended March 31, 2016 was 16.5% based on pretax loss of $0.8 million.  The Company’s effective tax rate for the quarter was lower than the statutory rate primarily due to year-to-date 2016 losses, non-deductible meals and entertainment expenses, and the impact of current quarter losses in jurisdictions where the Company is currently preclude from booking tax benefits. The effective tax rate was 51.0% for the three months ended March 31, 2015.  The difference in the effective tax rate for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 is primarily due to changes in pre-tax income by jurisdiction and the impact of permanent items on 2016 pre-tax losses.

 

As of March 31, 2016, the Company had total unrecognized tax benefits of approximately $1.8 million all of which would impact the Company’s effective tax rate if recognized.  The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its condensed consolidated statement of operations.  As of March 31, 2016, the Company’s accrual of interest and penalties amounted to $0.5 million.