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Note 8 - Income Taxes
3 Months Ended
Mar. 31, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 8 – Income Taxes


The Company is subject to income tax in multiple jurisdictions and the use of estimates is required to determine the provision for income taxes. For the three months ended March 31, 2014 and 2013 the Company recorded an income tax provision of $4.4 million and $3.1 million, respectively. The income tax provision is based on the estimated annual effective tax rate for the year applied to pre-tax income. The effective income tax rate for the three months ended March 31, 2014 was 30.6 percent compared with 27.3 percent in the same period of the prior year.


The effective income tax rate for the three months ended March 31, 2014 differs from the U.S. federal statutory rate of 35 percent due primarily to the mix of revenue earned in domestic and foreign tax jurisdictions and deductions for which the Company qualifies.


On January 2, 2013, the American Taxpayer Relief Act of 2012 (the Act) was signed into law. Included in the Act was the extension of the research and development credit for years 2012 and 2013. As the Act was enacted during 2013, the federal portion of the 2012 research and development credit was recognized in the first quarter of 2013. As a result, during the three months ended March 31, 2013, the Company recorded a tax benefit of $0.3 million, which translated to an effective income tax rate reduction of 3.0 percent related to the federal research and development credit for 2012. Absent the impact of the Act, the effective income tax rates would have been similar for the three month periods ended March 31, 2014 and 2013, respectively.


The Company has liabilities related to unrecognized tax benefits totaling $0.7 million at March 31, 2014 and December 31, 2013. There were no material adjustments to the unrecorded tax benefits during the three months ended March 31, 2014, and the Company does not anticipate that total unrecognized tax benefits will materially change in the next twelve months. The Company recognizes interest and penalties related to income tax matters in income tax expense, and reports the liability in current or long-term income taxes payable as appropriate.