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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Taxes  
Income Taxes

Note 14. Income Taxes

 

The Company recognized income tax expense of $25.4 million and $46.7 million for the three and six months ended June 30, 2013, respectively. The Company recognized income tax expense of $27.3 million and $49.0 million for the same periods in 2012.

 

The Company recognizes accrued interest and penalties relating to uncertain tax positions as an income tax provision expense. The Company recognized a benefit on interest and penalties of approximately $0.5 million and interest and penalties expense of $0.1 million for the six months ended June 30, 2013 and 2012, respectively. The Company had approximately $2.9 million and $3.4 million of accrued interest and penalties as of June 30, 2013 and December 31, 2012, respectively.

 

The Company and its subsidiaries file a consolidated federal income tax return and also file income tax returns in various state jurisdictions. The Company is currently being audited by the Internal Revenue Service for the tax year 2012 and 2013. The Company is also under audit with the California Franchise Tax Board for the tax years 2005 to 2007. The financial statement impact resulting from completion of these audits is not expected to be material.

 

From time to time, there may be differences in opinion with respect to the tax treatment of certain transactions. If a tax position which was previously recognized on the consolidated financial statements is no longer more likely than not to be sustained upon a challenge from the taxing authorities, the tax benefit from the tax position will be derecognized. The Company did not have any material tax positions for which previously recognized benefits were derecognized during the six month period ended June 30, 2013.