INCOME TAXES

3 Months Ended

Mar. 31, 2015

9.	INCOME TAXES

The Company determines its periodic income tax provision (benefit) based upon the current period income and the annual estimated tax rate for the Company adjusted for any change to prior year estimates. The estimated tax rate is revised, if necessary, as of the end of each successive interim period during the fiscal year to the Company’s current annual estimated tax rate.

For the first quarter of 2015, the income tax provision reflects an effective tax rate of 33.0 percent, compared to an effective tax rate of 31.6 percent for the comparable period in the prior year. The effective rate for the three months ended March 31, 2015 is the result of continued beneficial permanent differences including tax-exempt interest income and a favorable U.S. manufacturing deduction. The first quarter 2015 effective tax rate is higher primarily due to increased profit without the benefit of the federal R&D credit which has not been re-enacted for 2015.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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