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INCOME TAXES
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9 Months Ended |
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Sep. 30, 2013
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| Income Taxes [Abstract] | |
| INCOME TAXES | NOTE G – INCOME TAXES
We recorded an income tax benefit from continuing operations of less than $0.1 million and $2.5 million, respectively, for the three and nine months ended September 30, 2013, as compared to an income tax benefit of $4.8 million for both the three and nine months ended September 30, 2012. The difference between the recorded income tax benefit and a provision (expense) using the 34.0% federal statutory tax rate for the three months ended September 30, 2013 resulted primarily from a reduction in our reserve for state income taxes related to unrecognized tax benefits. For the nine months ended September 30, 2013, the difference between the recorded income tax benefit and a benefit using the federal statutory tax rate was primarily from our tax accounting method change allowing a one-time acceleration and catch-up of depreciation and amortization. The tax accounting method change related to our 2003 acquisition of our former joint venture partner’s interest in our Cellemetry LLC subsidiary. The reduction in our reserve for state income taxes related to unrecognized tax benefits also contributed to the difference between the recorded income tax benefit and a benefit using the federal statutory tax rate for the nine months ended September 30, 2013.
The differences between the recorded income tax benefit and a provision using the federal statutory tax rate for the three and nine months ended September 30, 2012 were due to the release of a portion of the valuation allowance against federal net operating losses and certain other deferred tax assets was released during the three months ended September 30, 2012. We continue to maintain a valuation allowance against a portion of deferred tax assets that we determined we would likely not utilize before expiration. The deferred tax assets with a valuation allowance consist of certain state net operating losses, tax credits, and foreign net operating losses.
We file US, state and foreign income tax returns in jurisdictions with varying statutes of limitation. The 2009 through 2012 tax years generally remain subject to examination by federal and most state tax authorities. In addition, certain returns from earlier years in which net operating losses have arisen are still open for examination by the tax authorities.
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