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Income taxes
3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Income Tax Disclosure
Federal and state income taxes
At March 31, 2013 and December 31, 2012, unrecognized tax benefits totaled $3.9 million and $4.3 million, respectively. The total amount of unrecognized benefits that would affect the effective tax rate if recognized was $1.2 million at March 31, 2013 and $1.8 million at December 31, 2012. As of March 31, 2013, accrued interest and penalties totaled $1.0 million, of which $0.7 million would affect the effective tax rate if recognized.
The effective income tax rate was 38.9% for the three months ended March 31, 2013, compared to 4.6% for the same period in 2012. The effective income tax rate for the three months ended March 31, 2012 was impacted by a $15.7 million cumulative reduction in the income tax provision as a result of certain income tax elections made in the first quarter of 2012. Excluding the impact of these income tax elections, the effective tax rate for the three months ended March 31, 2012 would have been 43.5%.
The Company files income tax returns in numerous jurisdictions. The statutes of limitations vary by jurisdiction, with certain of these statutes expiring without examination each year. The Company anticipates that the net amount of unrecognized tax benefits will decrease by $0.2 million within the next 12 months, none of which would affect the effective tax rate if recognized.
The Company believes it has adequately reserved for its uncertain tax positions; however, there is no assurance that the taxing authorities will not propose adjustments that are different from the Company’s expected outcome and impact the provision for income taxes.