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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Taxes  
Income Taxes

(6) Income Taxes

 

A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution.

 

During the nine months ended September 30, 2014, the Company (a) amended certain prior-year tax returns in the U.S. for deductions in those years not previously taken, (b) resolved uncertain tax positions in the U.S. for fiscal years 2007 through 2010, reducing tax reserves, (c) revised estimates for certain tax positions for other prior years, increasing tax reserves and (d) adjusted accruals for prior year returns.  The net effect was a decrease in tax expense of $2.7 million.

 

The Company had reserves for tax positions taken of $14.2 million and $13.1 million at September 30, 2014 and December 31, 2013, respectively. The Company had accrued interest expense related to tax reserves of $2.3 million and $2.2 million, net of related tax effects, at September 30, 2014 and December 31, 2013, respectively.