INCOME TAXES |
6 Months Ended |
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Jun. 30, 2015 | |
| INCOME TAXES [Abstract] | |
| INCOME TAXES |
13. INCOME TAXES
We file an income tax return in the U.S. federal jurisdiction and a margin tax return in Texas. Tax returns for the years 2010 through 2013 remain open for examination As of June 30, 2015, and December 31, 2014, we recognized no material adjustments in connection with uncertain tax positions. The effective tax rate varies from the federal statutory rate of 35% primarily as a result of state tax expense, stock option based compensation and the manufacturing deduction.
Our state income tax rate was affected by Texas House Bill 32 which was signed in June 2015. The Texas margin tax rate was reduced for tax reports due on or after January 1, 2016. We have adopted the U.S. Treasury Department and IRS final regulations that address costs incurred in acquiring, producing, or improving tangible property. These final regulations require a tax accounting method change to be filed with the IRS. We do not anticipate the impact of these changes to be material to our consolidated financial statements.
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