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Income Taxes
3 Months Ended
Mar. 31, 2014
Income Taxes [Abstract]  
Income Taxes

(8)Income Taxes

 

The consolidated income tax expense for the three months ended March 31, 2014 and 2013 was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2014 and 2013, respectively. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate is primarily attributable to state income taxes, foreign income taxes and the effect of certain permanent differences.

The Company’s effective tax rate for the three months ended March 31, 2014 was 9.0% compared to 12.4% for the three months ended March 31, 2013. The lower effective tax rate for the three months ended March 31, 2014 was due primarily to higher pretax income from foreign operations where statutory rates are lower than the U.S. income tax rates.

The Company recognizes in the financial statements a liability for tax uncertainty if it is more likely than not that the position will be sustained on audit, based on the technical merits of the position. As of March 31, 2014, the Company had unrecognized tax benefits of $0.2 million, which if recognized, would reduce the Company’s effective tax rate. Total accrued interest relating to unrecognized tax benefits was less than $0.1 million as of March 31, 2014. The Company does not believe the total amount of unrecognized tax benefits as of March 31, 2014 will increase or decrease for the remainder of 2014.

In June 2012, the Company received notification from the Internal Revenue Service (IRS) that the Company’s 2008 and 2009 U.S. federal income tax returns had been selected for examination.  In June 2013, the Company received notification from the IRS that it had completed its examination for both 2008 and 2009, making changes to taxable income for those years.  The changes did not materially alter the Company’s income tax for those years.