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Income Taxes
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9 Months Ended |
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Sep. 30, 2014
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| Income Taxes | |
| Income Taxes |
11.The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company has identified its federal consolidated tax return and its state tax return in New Jersey and its Canadian tax return as major tax jurisdictions. As of September 30, 2014 the Company’s 2013 Federal tax return remains open for examination, as the Company recently concluded an Internal Revenue Service examination for the 2011 and 2012 tax years. This examination resulted in no change to the previously filed Federal corporate tax returns. The Company’s New Jersey and Canadian tax returns are open for examination for the years 2011 through 2013. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter.
The effective tax rate for each of the nine and three months ended September 30, 2014 was 34.0% and 31.6% respectively, compared with 32.4% and 30.5% for the same periods last year. The current year effective tax rates are higher primarily due to fact the prior year included an adjustment to reflect a change in state apportionment rules.
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