Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Taxes [Abstract]  
Income Taxes

11 - Income Taxes

Provision for Income Tax Expense

We recorded provisions for income tax of $3.5 million and $9.6 million for the three and nine months ended September 30, 2014, respectively. Our effective tax rate was 31.2% and 30.7% for the three and nine months ended September 30, 2014, respectively.

We recorded provisions for income tax of $2.3 million and $5.0 million for the three and nine months ended September 30, 2013, respectively. Our effective tax rate was 26.5% for both the three and nine months ended September 30, 2013, respectively.

Our effective tax rate for the nine months ended September 30, 2014 differed from statutory tax rates primarily because of profits taxed in foreign jurisdictions with lower tax rates than the statutory rate.  The increase in the effective tax rate for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013 is primarily attributable to the increase of probability in high tax jurisdictions such as the United States on an actual and forecasted bases.  

Our effective tax rate for the nine months ended September 30, 2013 differed from statutory tax rates primarily because of profits taxed in foreign jurisdictions with lower tax rates than the statutory rate and tax benefits related to the 2012 federal research and development tax credit by enactment of the American Taxpayer Relief Act of 2012 in January 2013 and domestic manufacturer deduction.  The federal research and development credit and domestic manufacturer deduction benefited the effective tax rate for the nine months ended September 30, 2013 by approximately 6%.

We recorded a net tax expense of $191,000 of unrecognized tax benefits, which consist of new unrecognized tax benefits of $507,000 by a reversal of unrecognized tax benefits of $315,000 due to the audit closures and expiration of the statute of limitations for the nine months ended September 30, 2014.  Within the next twelve months, it is possible our uncertain tax benefit may change within a range of approximately zero to $384,555.Our tax returns remain open to examination as follows: U.S. Federal, 2011 through 2013, U.S. States 2009 through 2013 and significant foreign jurisdictions, 2009 through 2013.