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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE L – INCOME TAXES

The Company’s effective tax rate was 18% and 33% for the three months ended June 30, 2015 and 2014, respectively, and 22% and 33% for the six months ended June 30, 2015 and 2014, respectively. The lower effective tax rate for the three and six months ended June 30, 2015 compared to the U.S. federal statutory tax rate of 35% was primarily due to an increase in earnings in jurisdictions with lower tax rates than the U.S. federal statutory tax rate, where such earnings are permanently reinvested coupled with a favorable resolution of a foreign audit in the Asia Pacific region. The lower effective tax rate for the three and six months ended June 30, 2015 compared with the same periods for 2014 was primarily due to an increase in earnings in jurisdictions with lower tax rates than the U.S. federal statutory tax rate, where such earnings are permanently reinvested coupled with a favorable resolution of a foreign audit in the Asia Pacific region.

The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. No significant changes to the valuation allowance were reflected for the three and six months ended June 30, 2015.

As of June 30, 2015, the Company had gross unrecognized tax benefits of approximately $.2 million. Under the provisions of ASC 740, Accounting for Income Taxes, the Company reduced previously unrecognized tax benefits by $.6 million primarily due to the final resolution of an audit in the Asia Pacific region. The resolution of the audit in the Asia Pacific region was for an amount less than what had previously been accrued, and, as a result, $.2 million of the reduction of unrecognized tax benefits was recognized and affected the tax rate. The Company also recognized a related tax benefit for the reduction of accrued interest and penalties of $.5 million and $.1 million, respectively. The Company does not anticipate any material changes to the amount of unrecognized tax benefits within the next six months.