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Income Taxes
3 Months Ended
Mar. 31, 2013
Income Taxes  
Income Taxes

Note H - Income Taxes

 

Our first quarter 2013 income tax expense of $4.0 million resulted in an effective income tax rate of 37.2%.  Our first quarter 2012 income tax provision of $4.9 million resulted in an effective income tax rate of 39.7%.  Our effective income tax rate is derived by estimating pretax income and income tax expense for the year ending December 31, 2013.  The effective income tax rate calculated for the first quarter of 2013 is higher than the federal statutory rate of 35.0%, primarily due to the addition of state income taxes.

 

Harte-Hanks, or one of our subsidiaries, files income tax returns in the U.S. federal, U.S. state and foreign jurisdictions.  For U.S. state and foreign returns, we are no longer subject to tax examinations for tax years prior to 2008.  For U.S. federal returns, we are no longer subject to tax examinations for tax years prior to 2009.

 

We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Income.  We did not have a significant amount of interest or penalties accrued at March 31, 2013 or December 31, 2012.