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Income Taxes
 6 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

(11)   Income Taxes

 

The Company recognized a (benefit) expense of ($884) and $1,158 for federal, state and foreign income taxes for the three months ended June 30, 2012 and 2011, respectively. The Company recognized a provision of $334 and $1,835 for federal, state and foreign income taxes for the six months ended June 30, 2012 and 2011, respectively.

 

The decrease in the effective tax rate to (14.3)% for the three months ended June 30, 2012 compared to 26.3% for the same period for 2011 was attributable to the tax benefit of the overall loss for the quarter primarily the PST operations which had a local tax rate lower than the U.S. statutory rate.

 

The increase in the effective tax rate to 42.7% for the six months ended June 30, 2012 compared to 23.7% for the same period for 2011 was attributable to the negative impact of recognizing a tax benefit for the PST net loss before tax at a local tax rate lower than the U.S. statutory rate. Also, we recognized a one-time tax benefit for foreign loss relief during the first half of 2011 which lowered the Company’s tax rate for the prior year. The negative impact on the effective tax rate was partially offset by the improved financial performance of the U.S. operations for which there is no income tax provision due to a full valuation allowance.