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Income Taxes
6 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company's effective tax rate for the three months ended June 30, 2014 was a negative 26% which resulted in an income tax expense of $1.0 million on a net loss before taxes of $3.8 million. This compares to a negative 3% for the three months ended June 30, 2013, which resulted in a tax expense of $21.0 thousand on a net loss before taxes of $0.6 million. The tax expense on the pre-tax loss this year, as compared to the U.S. statutory tax rate, is primarily a result of no tax benefit being realized on certain foreign net operating losses and no tax benefit recorded on state net operating losses.

The Company's effective tax rate for the six months ended June 30, 2014 was a negative 7% which resulted in an income tax expense of $0.5 million on a net loss before taxes of $7.4 million. This compares to 44% for the six months ended June 30, 2013, which resulted in a tax expense of $2.2 million on a net profit before taxes of $5.0 million. The tax expense on the pre-tax loss this year, as compared to the U.S. statutory tax rate, is primarily a result of no tax benefit being realized on certain foreign net operating losses and no tax benefit recorded on state net operating losses.
Due to the various jurisdictions in which the Company files tax returns and the uncertainty regarding the timing of the settlement of tax audits, it is possible that there could be significant changes in the amount of unrecognized tax benefits in 2014 but the amount cannot be estimated. There has been no material change in the Company's contingency reserve for the six months ended June 30, 2014.