Set forth below is a reconciliation of the components that caused the Company's provision for income taxes (including the income statement line item “Decrease (increase) in income tax benefit payable to former stockholder”) to differ from amounts computed by applying the U.S. Federal statutory rate of 35% for the three and six months ended June 30, 2011 and 2010.



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Provision for income taxes (combined with decrease/increase in income tax benefit payable to former stockholder)⁽¹⁾⁽²⁾
U.S. Federal statutory rate	35.0	%	35.0	%	35.0	%	35.0	%
U.S. state taxes, net of Federal benefit	(0.6	)	0.1		(0.1	)	0.8
Export sales exclusion/manufacturer's deduction	(1.6	)	(2.1	)	(9.3	)	(2.2	)
Revaluation of deferred tax assets, net	—		(3.1	)	1.3		(3.7	)
Other	(2.0	)	(1.8	)	(1.9	)	2.8
Total provision for income taxes (combined with decrease/increase in income tax benefit payable to former stockholder)⁽¹⁾⁽²⁾	30.8	%	28.1	%	25.0	%	32.7	%
Less: decrease/increase in income tax benefit payable to former stockholder⁽¹⁾⁽²⁾
U.S. state taxes, net of Federal benefit	—		(0.3	)	5.3		(0.7	)
Export sales exclusion/manufacturer's deduction	1.8		1.8		4.4		1.5
Revaluation of deferred tax assets, net	—		(25.6	)	—		(20.2	)
Other	(1.4	)	(1.8	)	(1.3	)	(5.5	)
Total decrease/increase in income tax benefit payable to former stockholder⁽¹⁾⁽²⁾	0.4	%	(25.9	)%	8.4	%	(24.9	)%
Total provision for income taxes	31.2	%	2.2	%	33.4	%	7.8	%

____________________

⁽¹⁾

As a result of a partial increase in the tax basis of our tangible and intangible assets attributable to transactions entered into by affiliates controlled by a former significant stockholder at the time of the Company's 2004 initial public offering, the Company may pay reduced tax amounts to the extent it generates sufficient taxable income in the future. The Company is obligated to remit to an affiliate of the former stockholder 85% of any cash savings in U.S. Federal income tax, California franchise tax and certain other related tax benefits. Refer to the Company's 2010 Form 10-K for a more detailed description.

⁽²⁾

For the six months ended June 30, 2011, includes an aggregate benefit of $4.3 million related to the Company's determination, during the first quarter of 2011, of its ability to claim certain tax deductions related to prior years. For the six months ended June 30, 2010, includes an adjustment primarily related to deferred tax assets (net of valuation allowance) of approximately $2.1 million associated with prior year taxes.