INCOME TAXES:

3 Months Ended

Mar. 31, 2013

INCOME TAXES:

INCOME TAXES:

9.  INCOME TAXES:

The effective tax rate on income from operations was 32.1% and 25.4% for the three months ended March 31, 2013 and 2012, respectively. The effective tax rate for each period is lower than the U.S. statutory rate of 35% primarily due to the favorable impact of a beneficial foreign earnings mix.

The following table reflects the activity in the Company’s worldwide valuation allowance attributable to deferred tax assets:

	Valuation
($ in millions)	Allowance
Balance as of December 31, 2012	$	30.7
U.S. valuation allowance - State	1.1
Other	0.2
Balance as of March 31, 2013	$	32.0

Unrecognized tax benefits at March 31, 2013 were $33.3 million, all of which, if recognized, would impact the effective tax rate. The Company had accrued $9.3million for interest and penalties as of March 31, 2013. The Company recognizes interest and penalties related to unrecognized tax benefits in its income tax provision.

The Company is currently under audit in certain jurisdictions and during the next twelve months, it is reasonably possible that resolution of these audits could result in a benefit of up to $0.7 million.