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Income Taxes
3 Months Ended
Mar. 31, 2013
Income Taxes  
Income Taxes

10.          Income Taxes

 

The Company accounts for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes.  The Company’s effective income tax rates for the three month periods ended March 31, 2013 and 2012 were approximately 36.9% and 38.0%, respectively.  The change in rate for the three month period for 2013 was primarily due to a one-time benefit resulting from the January 2, 2013 retroactive extension of the Work Opportunity Tax Credit which resulted in the recognition of the benefit from fiscal year 2012 in the first quarter of 2013.  The 2012 rate was below the statutory rate primarily due to a one-time benefit resulting from the release of a valuation allowance in conjunction with tax planning strategies completed during the first quarter of 2012, as well as a lower state tax rate from the Cambridge acquisition.

 

Certain tax authorities may periodically audit the Company.  Based on the Company’s evaluation, the Company concluded that no significant uncertain tax positions require recognition in the financial statements.  Additionally, the Company may from time to time be assessed interest and penalties by tax jurisdictions.  Any such assessments historically have been immaterial to the Company’s financial results and are classified as other general and administrative expenses in the consolidated statements of income.