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Income Taxes
9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
10. Income Taxes:
The provision for income taxes for the three months ended September 30, 2012 and 2011 was $57,000 and $114,000, respectively. The provision for income taxes for the nine months ended September 30, 2012 and 2011 was $148,000 and $229,000, respectively. The difference between the statutory rate and the Company’s effective tax rate is primarily due to the impact of foreign taxes, changes in the valuation allowance on deferred tax assets, and changes in the accruals related to unrecognized tax benefits.
As of September 30, 2012 and December 31, 2011, the Company had gross unrecognized tax benefits of approximately $3.8 million and $4.4 million, respectively, of which $735,000 and $755,000, respectively, if recognized, would impact the effective tax rate on income from continuing operations. The Company’s policy is to recognize interest and/or penalties related to unrecognized tax benefits in income tax expense. As of September 30, 2012 and December 31, 2011, the Company had accrued $158,000 and $201,000, respectively, for interest and penalties. The $540,000 reduction in gross unrecognized tax benefits during the nine months ended September 30, 2012 was primarily attributable to the expiration of the statute of limitations in certain foreign jurisdictions.