NOTE 15 — INCOME TAXES

The following table sets forth the Company's income tax provision for the periods indicated (dollar amounts in thousands):

	Three months ended March 31,
	2013			2012
Income before income taxes	$	16,257		$	5,242
Income tax provision		5,415			2,134
Consolidated net income	$	10,842		$	3,108

Income tax provision as a percentage of income before income taxes		33.3	%		40.7	%

During the three months ended March 31, 2013, the Company recorded an income tax provision of $5.4 million, which equals 33.3% of income before income taxes. The Company estimated that its anticipated global tax rate for 2013 will be approximately 37.0%. The difference between this 37.0% estimated tax rate and the 33.3% provision rate applied to the quarter ended March 31,2013 was related to the effect of 2012 R&D tax credits recognized in the first quarter of 2013 upon passage of the bill retroactively extending these tax credits to 2012. The Company calculated the net impact of its 2012 R&D tax credit to be $0.6 million.

The Company's provision for income taxes for the quarter ended March 31, 2012 was equal to 40.7% of income before income taxes. This figure equaled the blended effective income tax rate that was expected for the year 2012, and took into consideration certain costs related to the acquisition of KDIL that have been expensed for book and are not expected to be deductible. This tax provision rate factored in various domestic deductions and the impact of foreign operations on the Company's overall tax rate.

In accordance with ASC 740-10-25, Income Taxes – Recognition, the Company reviews its tax positions to determine whether it is "more likely than not" that its tax positions will be sustained upon examination, and if any tax positions are deemed to fall short of that standard, the Company reserves based on the financial exposure and the likelihood of its tax positions not being sustained. Based on its evaluations, the Company determined that it would not recognize tax benefits on $1.7 million and $1.5 million of its tax positions as of March 31, 2013 and December 31, 2012, respectively. If recognized, $0.5 million and $0.3 million of these tax positions as of March 31, 2013 and December 31, 2012, respectively, will impact the Company's effective rate. The remaining $1.2 million at each date was related to temporary differences and therefore would not impact the Company's effective rate, if recognized.