Note 14 - Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 14 — INCOME TAXES

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

	Three Months ended  June 30,						Six Months ended June 30,
	2014			2013			2014			2013
Income from continuing operations before income taxes	$	14,312		$	19,982		$	30,004		$	36,239
Income tax provision		5,303			7,345			11,167			12,760
Net income from continuing operations	$	9,009		$	12,637		$	18,837		$	23,479
Income tax provision as a percentage of income before income taxes		37.1	%		36.8	%		37.2	%		35.2	%

For the three and six month periods ended June 30, 2014, the Company recorded an income tax provision of $5.3 million and $11.2 million, respectively, which equals 37.1% and 37.2% of income before income tax in the applicable periods. The Company anticipates that its effective tax rate for the year 2014 will be approximately 37.2%.

During the three and six month periods ended June 30, 2013, the Company recorded income tax provisions that equaled 36.8% and 35.2% of income before income tax in the applicable period.  The income tax provision rates in the current year were increased in comparison to the prior year due to the incurrence of certain nondeductible fees related to the acquisition of Hi-Tech in the three and six month periods ended June 30, 2014.  Additionally the prior year rate also reflects a discrete adjustment related to recognition of the Company’s 2012 R&D tax credits, which were not recognized in 2012 because the law renewing the credits for 2012 was not passed until early 2013. The R&D tax credit has not been renewed for 2014, and no benefit for such credits has been recognized in the current year’s tax expense.

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 establishes reserves based on the financial exposure and the likelihood that its tax positions would not be sustained.  Based on its evaluations, the Company determined that it would not recognize tax benefits on $1.1 million and $0.8 million related to uncertain tax positions as of June 30, 2014 and December 31, 2013.  If recognized, the entire amount of these tax positions will impact the Company’s effective rate.