XML 19 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
3 Months Ended
Mar. 31, 2013
Income Taxes

4 Income Taxes

For the three months ended March 31, 2013, the effective tax rate was 26.5%, compared with an effective tax rate of 28.1% for the same quarter of 2012. In the first quarter of 2013, the net impact of discrete tax items caused a 0.4% decrease to the effective tax rate. The net impact of discrete tax items in the first quarter of 2012 caused a 0.8% increase to the effective tax rate for the quarter.

The Company files income tax returns in the United States federal jurisdiction, various state jurisdictions and foreign jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is effectively no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2009. In addition, with few exceptions, the Company is also no longer subject to income tax examination by U.S. state and local and non-U.S. tax authorities for years prior to 2004.

The Company is undergoing tax audits in several jurisdictions covering multiple years. As of March 31, 2013, as a result of those tax examinations, the Company is not aware of any proposed income tax adjustments that would have a material impact on the Company’s financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.

During the first quarter of 2013, the Company recorded a net increase of $4.8 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current and prior years, including accruing additional interest related to unrecognized tax benefits of prior years. Of the total unrecognized tax benefits of $20.4 million recorded at March 31, 2013, $2.6 million is classified as current tax payable and $17.8 million is classified as non-current tax payable on the Condensed Consolidated Balance Sheet.