Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 11 — Income Taxes

The Company is required to file separate U.S. Federal income tax returns for each of Flotek's two U.S. tax filing groups. Taxable income of one group's return may not offset tax attributes, including net operating losses, of the other.

The effective income tax rates for the three months ended September 30, 2011 and 2010 were 13.2% and (187.2%), respectively, while the September 30, 2011 and 2010 year to date effective income tax rates were 15.7% and (14.9%), respectively. Fluctuations in effective tax rates are impacted by non-cash fluctuations in the fair value of the Company's warrant liability which do not affect income taxes and by deferred tax asset valuation allowances.

At September 30, 2011 and December 31, 2010, the Company had an income tax receivable of $3.4 million related to the carryback of the Company's 2010 net operating loss. At September 30, 2011, the income tax receivable was offset by $4.6 million of income tax payable related to estimated taxes payable on current year taxable income.