Research and development expenses ("R&D") were
Other income was
Income taxes were accrued at an estimated effective tax rate of 31% in the first six months of 2013 compared to 34% in the first six months of 2012. The rate differed from the statutory corporate rate of 35% principally because of the effect of foreign and state income taxes, tax credits, deductions for domestic production activities and discrete tax items, including the extension of the federal research and development credit for the 2012 tax year.
Liquidity and Capital Resources
During the first six months of 2013, our cash, cash equivalents and investment securities increased by
$17.8 millionfrom $226.2 millionat December 31, 2012to $244.0 millionat June 30, 2013.
Operating Activities: Our cash provided by operating activities tends to increase over time because of our positive operating results. However, it is subject to fluctuations, principally from changes in net income, accounts receivable, inventories and the timing of tax payments.
Our cash provided by operations was
$26.0 millionin the first six months of 2013. Net income plus adjustments for non-cash net expenses contributed $29.8 millionto cash provided by operations. This was partially offset by the net decrease in changes in operating assets and liabilities of $3.9 millionto cash provided by operations. The $2.9 millionincrease in prepaid and deferred income taxes was the largest contributor to the change in operating assets and liabilities. The increase in prepaid and deferred income taxes is primarily due to the timing of income tax payments. Investing Activities: Our cash used by investing activities was $8.1 millionin the first six months of 2013, which was primarily comprised of $11.8 millionin capital purchases, partially offset by net investment sales of $4.3 million. Our property, plant and equipment purchases were primarily comprised of machinery, equipment and mold additions in our United Statesplant. 16
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While we can provide no assurances, we estimate that our capital expenditures in 2013 will approximate
$23.0 millionto $28.0 million. The large increase in expected capital expenditures is due to planned building improvements to prepare for anticipated capacity requirements beyond 2013. At our Salt Lake City, Utahplant, we plan to convert existing warehouse space into manufacturing space and a new clean room. We also anticipate making investments in molds, machinery and equipment in our manufacturing operations in the United Statesand Mexicoto support new and existing products and investments in information technology that benefit world-wide operations. We expect to use our cash and investments to fund our capital purchases. These planned amounts of spending are estimates and actual spending may substantially differ from these amounts.