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Note 9 - Income Taxes
9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 9 – Income Taxes


Our provision for income tax expense was 29% and 25% of income before income taxes for the third quarters ended September 30, 2014 and 2013, respectively. The rate in the third quarter 2014 was lower than the statutory rate due primarily to the effect of foreign operations where tax rates tend to be lower as well as the domestic manufacturing deduction. The rate in the third quarter 2013 was lower than the statutory rate due primarily to certain discrete adjustments totaling $109,000 recorded during the quarter. 


For the nine-month period ended September 30, 2014, our income tax expense was 30% of income before income taxes compared to 20% for the same period of 2013. The rate for the first nine-months of 2014 was lower than the statutory rate due primarily to the effect of our foreign operations and the domestic manufacturing deduction. The rate for the first nine-months of 2013 was positively impacted by the tax law changes noted above as well as the domestic tax law change related to research and development credits which was effective in the first quarter 2013. 


As of September 30, 2014 and December 31, 2013, the liability for gross unrecognized tax benefits was $295,000 and $304,000, respectively. Changes in gross unrecognized tax benefits during the nine-months ended September 30, 2014 primarily consisted of a decrease for tax positions taken in the current year. It is expected that the amount of unrecognized tax benefits for positions which the we have identified will not materially change in the next twelve months.