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INCOME TAXES
6 Months Ended
Jun. 30, 2011
INCOME TAXES
NOTE 9 – INCOME TAXES
 
The effective income tax rate was 25.2% and 74.4% for the three months ended June 30, 2011 and 2010, respectively.  The change in the rate was primarily attributable to an increase in the Company’s U.S. pre-tax income, absorbed by utilization of net operating losses (“NOLs”).
 
 The effective income tax rate was 34.0% and negative 24.0% for the six months ended June 30, 2011 and 2010, respectively.  The change in the rate was primarily attributable to an increase in the Company’s U.S. pre-tax income, absorbed by utilization of NOLs.
 
As of June 30, 2011 and December 31, 2010, the Company had $8,319 and $8,303, respectively, of unrecognized tax benefits, including interest and penalties, which if recognized in the future, would affect the Company’s annual effective income tax rate.  Estimated interest and penalties are classified as part of the provision for income taxes in the Company’s Condensed Consolidated Statements of Operations and totaled to a benefit of $103 and $180, respectively, for the six months ended June 30, 2011 and 2010, respectively. Accrued interest and penalties were $1,769 and $1,895 as of June 30, 2011 and December 31, 2010, respectively.  In many cases, the Company’s unrecognized tax benefits are related to tax years that remain subject to examination by the relevant tax authorities.  Tax years that have NOLs remain open until the expiration of the statute of limitations of the future tax years when those NOLs would be utilized. Notwithstanding the above, the open tax years are 2007 through 2010 for U.S. Federal, 2005 through 2010 for most U.S. State and local jurisdictions, 2009 through 2010 for the U.K., 2000 through 2003 and 2006 through 2010 for Australia and 2003 through 2010 for most other jurisdictions.  On the basis of information available as of June 30, 2011, it is reasonably possible that the total amount of unrecognized tax benefits could decrease in a range of $900 to $4,500 within 12 months as a result of projected resolutions of global tax examinations and controversies and a potential lapse of the applicable statutes of limitations.
 
The Company is currently under income tax examination in the State of Pennsylvania (2004-2009).