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Income Taxes
6 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes

10. Income Taxes

 

The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions.  The Internal Revenue Service (“IRS”) has completed examinations of the Company’s U.S. income tax returns or the statute has passed on years through 2007. As of June 30, 2012, the IRS has proposed no significant adjustments to any of the Company’s tax positions.  

 

Under the provisions of the ASC Subtopic 740-10-25, Income Taxes - Recognition, the Company had no unrecognized tax benefits as of June 30, 2012.

                                                                                                                             

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The Company’s effective tax rate was 44.8% and 42.8% for the respective three and six months ended June 30, 2012 compared to 43.4% and 42.4% for the respective three and six months ended June 30, 2011. The increase in the effective rate is primarily due to projected foreign-source income and non-deductible transaction costs. The difference between the Company’s federal statutory rate of 35% and effective tax rate relates primarily to state income taxes, net of the federal benefit, and permanent non-deductible items such as non-deductible executive compensation and 50% of meals and entertainment expenses, partially offset by the tax benefits of certain dispositions of incentive stock options by holders.  As of June 30, 2012, the Company’s net current deferred tax asset was $0.9 million and its net non-current deferred tax asset was $2.5 million.  Generally, deferred tax assets are related to stock compensation, accruals, and net operating losses of acquired companies.  Net current deferred tax assets are recorded in “Other current assets” and net non-current deferred tax assets are recorded in “Other non-current assets” on the Condensed Consolidated Balance Sheets as of June 30, 2012.