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Income Taxes
9 Months Ended
Sep. 30, 2012
Income Tax Expense (Benefit) [Abstract]  
Income Taxes
Income Taxes
The effective tax rate for the three and nine months ended September 30, 2012 of 30.7% and 31.1%, respectively, differs from the U.S. federal statutory rate of 35% primarily due to the effect of income earned by certain of the Company's foreign entities being taxed at lower rates than the federal statutory rate and the positive effect of the domestic production activities deduction. The effective tax rate for the three and nine months ended September 30, 2011 of 28.9% and 30.8%, respectively, differs from the federal statutory rate primarily due to the effect of income earned by certain of the Company’s foreign entities being taxed at lower rates than the U.S. federal statutory rate and the positive effect of the domestic production activities deduction.
As of September 30, 2012, the Company has recorded a $3,457 liability, in accordance with ASC 740-10-25 “Income Taxes,” for gross unrecognized tax benefits. This amount includes $968 of unrecognized tax benefits which, if ultimately recognized, will reduce the Company's annual effective tax rate. During the third quarter of 2012, gross unrecognized tax benefits increased $1,921 due to tax positions taken on prior year returns. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2012, the Company had accrued approximately $114 for the payment of interest and penalties. During the first quarter of 2012, the Internal Revenue Service (IRS) completed an examination of the Company's amended U.S. income tax returns for 2005 and 2006. As a result of the completion of the examination, the Company's gross unrecognized tax benefits decreased by $905.