INCOME TAXES

9 Months Ended

Sep. 30, 2012

INCOME TAXES

NOTE 13 – INCOME TAXES

Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first nine months of 2012, the Company increased its liability for unrecognized tax benefits by $0.4 million. As of September 30, 2012, the Company had accrued approximately $8.1 million for unrecognized tax benefits.