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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes

9. INCOME TAXES

The overall effective income tax rate was 31.3% and 31.2% for the three and nine months ended September 30, 2014, respectively, and 29.2% and 30.4% for the three and nine months ended September 30, 2013, respectively. For the three months ended September 30, 2014, the increase in the effective rate is primarily due to a benefit recorded in the third quarter of 2013 for the enacted reduction of a foreign statutory tax rate.  For the nine months ended September 30, 2014, the increase in the effective rate is also due to a 2013 benefit for the retroactive extension of the R&D tax credit.

As of September 30, 2014, the liability for income taxes associated with uncertain tax positions is $10.4 million, of which $4.7 million, if recognized, would favorably affect the Company’s effective tax rate. As of December 31, 2013 the liability associated with uncertain tax positions was $10.5 million, of which $4.7 million, if recognized, would favorably affect the Company’s effective tax rate.

The Company includes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2014 the total accrued interest and penalties are $1.9 million and $1.2 million, respectively.  As of December 31, 2013 the total accrued interest and penalties were $1.5 million and $0.9 million, respectively.  

At this time, the Company believes that it is reasonably possible that unrecognized tax benefits of approximately $0.1 million may change within the next 12 months due to the expiration of statutory review periods and current examinations.   With limited exception, the Company is no longer subject to examination by various U.S. and foreign taxing authorities for years before 2011.