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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Taxes  
Income Taxes

4. Income Taxes

 

The difference between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rates for the three and nine months ended September 30, 2013 and 2012 was principally due to state income taxes, and other discrete items.

 

The Company had unrecognized tax benefits of approximately $0.9 million and $0.8 million as of September 30, 2013 and December 31, 2012, respectively, which were included in other liabilities in the accompanying consolidated balance sheets.

 

The Company’s policy is to recognize interest and penalties related to income tax liabilities as a component of income tax expense in the consolidated statements of operations. The amount of interest and penalties charged to income tax expense because of the unrecognized tax benefits was not material for any of the three and nine-month periods ended September 30, 2013 and 2012.

 

The Company is subject to taxation in various jurisdictions. The Company’s federal tax returns for 2009 and 2010 are currently under examination by the Internal Revenue Service. The Company remains subject to examination by U.S. federal authorities for the remaining open tax years (2011 and 2012) and by various state authorities for the years 2009 through 2012.