INCOME TAXES

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The following table provides a summary of the Company’s effective tax rate:

	Three Months Ended March 31,
	2013		2012
Reported tax rate	29.6	%	30.2	%

The Company’s effective income tax rate for the three months ended March 31, 2013 and 2012 were 29.6% and 30.2%, respectively. For the three months ended March 31, 2013, the reduction in the income tax rate compared to the same period in 2012 was primarily the result of a change in the jurisdictional mix of year-to-date worldwide pretax income and a reinstatement of the Federal research and development credit. The Company recorded a benefit of $0.9 million in the current quarter due to the extension of the Federal research credit by the American Taxpayer Relief Act which was signed into law this quarter. The Company recorded a benefit of $0.4 million in the current quarter for the release of tax contingency reserves. This amount is offset by an expense of $0.4 million due to a change in the German local tax rate, which is also effective this quarter.

The Company expects its effective income tax rate for the full year to be approximately 1.0% due in part to foreign earnings taxed at lower tax rates combined with losses in the U.S., the benefit from the Federal research credit. This estimate could be revised in the future as additional information is presented to the Company.