Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

8. Income Taxes

Income taxes were $43.6 million and $88.3 million for the three and six months ended June 30, 2013, as compared to $51.6 million and $96.4 million for the same periods in 2012. The effective income tax rate was 23.4% and 25.2% for the three and six months ended June 30, 2013, as compared to 28.1% and 28.7% for the same periods in 2012. The decrease in the effective tax rate for the three and six months ended June 30, 2013, as compared to the same periods in 2012, was primarily due to an increase of net benefits from discrete events, principally related to favorable tax audit settlements, and the impact of changes in the geographic mix of the Company’s income.

As of June 30, 2013, the total amount of unrecognized tax benefits, including related interest and penalties was $35.6 million. If the total amount of unrecognized tax benefits was recognized, $28.2 million of unrecognized tax benefits, $4.7 million of interest and $0.8 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 $15.9 million within the next twelve months. Of this possible decrease, $14.2 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $1.7 million would be due to the expiration of statute of limitations in various jurisdictions.