Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes

Income Taxes

11.   Income Taxes

        Our income tax provision for the three months ended March 31, 2012 was $206.8 million on pre-tax income of $640.8 million, or an effective tax rate of 32.3%, compared to an income tax provision of $158.8 million on pre-tax income of $482.9 million, or an effective tax rate of 32.9%, for the three months ended March 31, 2011. The effective tax rate for the first quarter of 2012 based on pre-tax income exclusive of earnings attributable to noncontrolling interest was 35.8% compared to 36.7% in the first quarter of 2011. The decline in the effective tax rate exclusive of earnings attributable to noncontrolling interests was driven primarily by higher state taxes in the prior year due to the impact of tax rate increases which were effective in the prior year quarter. The effective tax rate based on pre-tax income differs from our effective tax rate based on pre-tax income exclusive of earnings attributable to noncontrolling interest, as our consolidated income tax provision does not include tax provisions on the earnings attributable to noncontrolling interests in TNCLP and CFL, which record no income tax provisions.

        For additional information concerning the income tax matters noted above, see Note 13—Income Taxes, to our audited consolidated financial statements included in our Annual Report on Form 10-K filed with the SEC on February 27, 2012.