Income Taxes

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Text Block]

Note 9 — Income Taxes

The provision for income taxes was $15.4 million for the three months ended September 30, 2012 compared to $14.0 million in the prior year quarter. The effective tax rate was 33.0% for the three months ended September 30, 2012 and 31.4% for the same period in 2011. The increase in the effective tax rate was primarily due to a change in the estimated annual mix of pre-tax income by jurisdiction. The provision for income taxes was $50.6 million for the nine months ended September 30, 2012 compared to $43.4 million for the same period in 2011. The effective tax rate was 32.1% for both the nine months ended September 30, 2012 and 2011.

As of September 30, 2012 and December 31, 2011, the Company had gross unrecognized tax benefits of $20.0 million and $18.3 million, respectively. It is reasonably possible that the gross unrecognized tax benefits will decrease by $4.8 million within the next 12 months, primarily due to settlements of outstanding audits and the expiration of the relevant statutes of limitation. As of September 30, 2012 and December 31, 2011, the Company had Other liabilities of $15.2 million and $15.4 million, respectively, related to long-term uncertain tax positions.

The Internal Revenue Service (“IRS”) has completed its examination of the federal income tax return of the Company for the tax year ended December 31, 2007. The Company disagrees with certain of the proposed adjustments and is disputing this matter through applicable IRS and judicial procedures, as appropriate. Separately, in the second quarter of 2011 the IRS commenced an audit of the Company’s 2008 and 2009 tax years. The Company continues to comply with all information requests and no material adjustments of the Company’s tax positions have been proposed at this time for the 2008 and 2009 tax years. Although the final resolution of these audits is uncertain and there are no assurances that the ultimate resolution will not exceed the amounts recorded, the Company believes that the ultimate disposition of these matters will not have a material adverse effect on its consolidated financial position, cash flows, or results of operations.