|
Income Taxes
|
9 Months Ended |
|---|---|
|
Sep. 30, 2012
|
|
| Income Taxes |
8. Income Taxes Income taxes were $39.5 million and $134.3 million for the three and nine months ended September 30, 2012, as compared to $43.0 million and $116.9 million for the same periods in 2011. The effective income tax rate was 25.1% and 27.2% for the three and nine months ended September 30, 2012, as compared to 28.5% and 27.6% for the same periods in 2011. The decrease in the effective tax rate for the three months ended September 30, 2012, as compared to the same period in 2011, was primarily due to an increase of net benefits from discrete events and by the impact of changes in the geographic mix of the Company’s income. The decrease in the effective tax rate for the nine months ended September 30, 2012, as compared to the same period in 2011, was primarily due to the impact of changes in the geographic mix of the Company’s income partially offset by lower net benefits from discrete events. As of September 30, 2012, the total amount of unrecognized tax benefits, including related interest and penalties was $46.8 million. If the total amount of unrecognized tax benefits was recognized, $38.1 million of unrecognized tax benefits, $5.6 million of interest and $1.7 million of penalties would impact the effective tax rate. The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $28.3 million within the next twelve months. Of this possible decrease, $26.0 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $2.3 million would be due to the expiration of statute of limitations in various jurisdictions. |