Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

(8)   Income Taxes

The consolidated income tax expense for the three and nine months ended September 30, 2012 and 2011 was determined based upon estimates of the Company's consolidated effective income tax rates for the years ending December 31, 2012 and 2011, respectively. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate is primarily attributable to state income taxes, foreign income taxes and the effect of certain permanent differences.

The Company's effective tax rates for the three and nine months ended September 30, 2012 were 11.1% and 13.0%, respectively, compared to 20.6% and 18.2%, for the three and nine months ended September 30, 2011, respectively. Movements in the effective tax rates are due primarily to changes in the proportion of the Company's U.S. and overseas earnings.

The Company recognizes in the financial statements a liability for tax uncertainty if it is more likely than not that the position will not be sustained on audit, based on the technical merits of the position. As of September 30, 2012, the Company had unrecognized tax benefits of $0.2 million, which if recognized, would reduce the Company's effective tax rate. Total accrued interest relating to unrecognized tax benefits was less than $0.1 million as of September 30, 2012. The Company does not believe the total amount of unrecognized tax benefits as of September 30, 2012 will increase or decrease significantly for the remainder of 2012.

In June 2012, the Company received notification from the IRS that the 2008 and 2009 U.S. tax returns have been selected for examination.