Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Taxes

7.   Income Taxes

The Corporation’s income tax provision for the second quarter of 2011 was $18.6 million, or an effective rate of 30.0% of pre-tax income, compared to a tax provision in the second quarter of 2010 of $13.7 million, or an effective rate of 29.9% of pre-tax income. The Corporation’s income tax provision for the six months ended June 30, 2011 was $33.9 million, or an effective rate of 30.0% of pre-tax income, compared to a tax provision for the six months ended June 30, 2010 of $25.3 million, or an effective rate of 30.2% of pre-tax income. The effective rate for each period reflects benefits from the Puerto Rican manufacturing operations, which have a significantly lower effective tax rate than the Corporation’s blended statutory tax rate in other jurisdictions.

During the first quarter of 2011, the Corporation concluded a Canada Revenue Agency audit of the Corporation’s Canadian income tax returns for the tax years 2005 — 2009, resulting in an $8.2 million assessment, including interest. Substantially all of this assessment was paid during the second quarter of 2011. The Canadian tax assessment is offset by an expected recovery of U.S. federal and state income taxes of $7.4 million, resulting from the Corporation’s petition for tax relief under the competent authority administrative process.

The Corporation had net deferred tax assets totaling $2.7 million as of June 30, 2011 and $12.4 million as of December 31, 2010. Realization of the deferred tax assets is dependent upon the Corporation’s ability to generate sufficient future taxable income. Management believes that it is more-likely-than-not that future taxable income, based on tax laws in effect as of June 30, 2011, will be sufficient to realize the recorded deferred tax assets, net of any valuation allowance.