
(11)	Income Taxes

The provision for income taxes represents federal, foreign, state and local income taxes. The effective rate differs from the applicable federal statutory rate due to the effect of state and local income taxes, tax rates and income in foreign jurisdictions, utilization of tax loss carry-forwards, dividends among affiliates, certain nondeductible expenses and certain other items. The Company’s tax provision changes quarterly based on recurring and non-recurring factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, foreign, state and local income taxes, tax audit settlements, the ultimate disposition of deferred tax assets relating to stock-based compensation and the interaction of various global tax strategies. In addition, changes in judgment from the evaluation of new information resulting in the recognition, derecognition and/or re-measurement of a tax position taken in a prior period are recognized in the quarter in which any such change occurs.

For the second quarter of 2011 and 2010, the Company recorded a provision for income taxes for continuing operations of $2.6 million and $4.8 million, respectively. The $2.6 million provision for income taxes for the second quarter of 2011, as compared to the $4.8 million provision for income taxes for the second quarter of 2010, was primarily attributable to lower taxable income in the U.S. and certain foreign jurisdictions, offset in part by higher deferred tax expense for the U.S. in 2011 due to the reduction of the valuation allowance in the U.S. on December 31, 2010.

For the first six months of 2011 and 2010, the Company recorded a provision for income taxes for continuing operations of $10.3 million and $9.8 million, respectively. The $10.3 million provision for income taxes for the first six months of 2011, as compared to the $9.8 million provision from income taxes for the first six months of 2010, was primarily attributable to higher deferred tax expense for the U.S. in 2011 due to the reduction of the valuation allowance in the U.S. on December 31, 2010, offset in part by lower taxable income in the U.S. and certain foreign jurisdictions.

The Company remains subject to examination of its income tax returns in various jurisdictions including, without limitation, the U.S. (federal) and South Africa, for tax years ended December 31, 2007 through December 31, 2009, and Australia for tax years ended December 31, 2006 through December 31, 2009.