8.	Income Taxes:

The Company’s policy is to estimate income taxes for interim periods based on estimated annual effective tax rates. These are derived, in part, from expected pre-tax income or loss. Accordingly, the Company applied an estimated annual effective tax rate to the interim period pre-tax loss in the three month periods ended March 31, 2014 and 2013 to calculate the income tax provision/benefit in accordance with the principal method prescribed by ASC 740-270, the accounting guidance established for computing income taxes in interim periods.

The effective income tax rates were 42.0% and 36.6% for the three month periods ended March 31, 2014 and 2013, respectively. The effective income tax rate differed from the federal statutory rate in the three month periods ended March 31, 2014 and 2013 due in part to a valuation reserve recorded to offset the deferred tax assets of a foreign subsidiary. The effective income tax rate differed from the federal statutory rate in the three month period ended March 31, 2013 also due in part to a reduction of the valuation reserve related to a deferred tax asset that was utilized in the period. The remaining differences between the federal statutory rate and the effective tax rate in the three month periods ended March 31, 2014 and 2013 were primarily due to state and foreign income taxes.