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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Taxes  
Income Taxes

10.          Income Taxes

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes.  The Company’s effective income tax rates for the three and six month periods ended June 30, 2013 and 2012 were approximately 41.7% and 39.5%, respectively, and 39.1% and 38.8%, respectively.  The change in rate for the second quarter of 2013 was primarily due to the first quarter of 2013 including a benefit resulting from the January 2, 2013 retroactive extension of the Work Opportunity Tax Credit.  Also impacting the change in the effective tax rate is the increase in permanent differences in relation to pre-tax income in addition to increases in our state income tax rates.

 

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 consolidated 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.