Note P – Income Taxes

The effective tax rate for the three and nine months ended April 30, 2011, was 24.5 percent and 28.1 percent, respectively. The effective tax rate for the three and nine months ended April 30, 2010, was 29.4 percent and 27.0 percent, respectively. The decrease in our effective tax rate for the three months ended April 30, 2011 was due to $3.5 million of tax benefits primarily from the release of reserves after the expiration of statutes or favorable conclusions of tax audits in various jurisdictions. The increase in our effective tax rate for the nine months ended April 30, 2011 was due to fewer favorable discrete items as compared to the nine months ended April 30, 2010. Without consideration of discrete items, the estimated annual effective tax rate of 29.6 percent was comparable to the 29.9 percent in the prior year.

The Company's uncertain tax positions are affected by the tax years that are under audit or remain subject to examination by the relevant taxing authorities. The following tax years, in addition to the current year, remain subject to examination, at least for certain issues, by the major tax jurisdictions indicated:


Major Jurisdictions		Open Tax Years
Belgium		2009 through 2010
China		2000 through 2010
France		2008 through 2010
Germany		2005 through 2010
Italy		2003 through 2010
Japan		2009 through 2010
Mexico		2006 through 2010
Thailand		2005 through 2010
United Kingdom		2009 through 2010
United States		2008 through 2010

At April 30, 2011, the total unrecognized tax benefits were $16.6 million, and accrued interest and penalties on these unrecognized tax benefits were $1.6 million. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. If the Company were to prevail on all unrecognized tax benefits recorded, substantially all of the unrecognized tax benefits would benefit the effective tax rate. With an average statute of limitations of about 5 years, up to $3.6 million of the unrecognized tax benefits could potentially reverse in the next 12 month period, unless extended by audit. It is possible that quicker than expected settlement of either current or future audits and disputes would cause additional reversals of previously recorded reserves in the next 12 month period. Currently, the Company has approximately $0.4 million of unrecognized tax benefits that are in dispute with various taxing authorities related to transfer pricing and deductibility of expenses. Quantification of an estimated range and timing of future audit settlements cannot be made at this time.