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

13.   Income Taxes

 

The effective tax rate for the quarter ended March 31, 2013 was 30.4% compared to 35.0% for the quarter ended March 31, 2012 The decrease in the quarter ended March 31, 2013 effective tax rate from the quarter ended March 31, 2012 effective tax rate was primarily due to net tax benefits from the sale of the Company’s activated carbon manufacturing facility in Datong, China which occurred in March 2013 (Refer to Note 1).

 

Unrecognized Income Tax Benefits

 

As of March 31, 2013 and December 31, 2012, the Company’s gross unrecognized income tax benefits were $4.2 million and $4.1 million, respectively.  If recognized, $3.1 million and $3.0 million of the gross unrecognized tax benefits would affect the effective tax rate at March 31, 2013 and December 31, 2012, respectively.  At this time, the Company believes that it is reasonably possible that approximately $0.3 million of the estimated unrecognized tax benefits as of March 31, 2013, will be recognized within the next twelve months based on the expiration of statutory periods all of which will impact the Company’s effective tax rate.