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

The Company has an income tax expense of $3.6 million for the nine months ended September 30, 2014, compared to an income tax expense of $5.5 million for the nine months ended September 30, 2013. The effective tax rate for the nine months ended September 30, 2014, was 44.4%, compared to 38.1% for the nine months ended September 30, 2013. The increase in our effective tax rate was a result of finalizing the Company's prior year U.S. income tax returns and the resolution of certain prior year foreign tax matters. These incremental tax expenses increased our effective tax rate by 6.2%.

As of September 30, 2014, the Company had approximately $5.1 million in unrecognized tax benefits, of which $4.2 million has been netted against deferred tax assets related to net operating loss carryforwards and, if recognized, would be reported as a reduction of income tax expense. However, a portion of these unrecognized tax benefits could be subject to a valuation allowance if and when recognized in a future period.

The Company is subject to taxation in the United States and various state and local jurisdictions. The Company has completed its New York State tax exam for the years ended December 31, 2010 through December 31, 2012 with no change. All of the Company’s U.S. federal tax returns from 1998 through 2013, its more significant state and local returns, as well as all tax returns of WeddingChannel.com, Inc. remain subject to examination as a result of the ongoing use of tax loss carryforwards.