Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

NOTE 3—Income Taxes:

The effective income tax rate for the three-month and six-month periods ended June 30, 2012 was 34.1% and 27.5%, respectively, compared to 21.7% and 22.9% for the three-month and six-month periods ended June 30, 2011, respectively. The Company’s effective income tax rate fluctuates based on, among other factors, our level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the 2012 and 2011 periods is mainly due to the impact of earnings from outside the U.S. Our effective income tax rate for the 2012 periods was also impacted by $94.7 million in pre-tax charges ($73.6 million after income taxes) associated with our exit of the phosphorous flame retardants business (see Note 13).