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Income Taxes
3 Months Ended
Mar. 31, 2014
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 months ended March 31, 2014 and 2013 was principally due to state income taxes.

 

The Company had unrecognized tax benefits of approximately $0.9 million and $0.8 million as of March 31, 2014 and December 31, 2013, 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 the three month periods ended March 31, 2014 and 2013.

 

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 (“IRS”). The Company remains subject to examination by the IRS for the remaining open tax years (2011, 2012 and 2013) and by various state authorities for the years 2009 through 2013.