INCOME TAXES

6 Months Ended

Jun. 30, 2012

INCOME TAXES

INCOME TAXES

NOTE 5: INCOME TAXES

The Company’s income tax provision consists of federal, state and foreign income taxes.  The tax provisions for the three months ended June 30, 2012 and 2011 were based on the estimated effective tax rates applicable for the full years ending December 31, 2012 and 2011, after giving effect to items specifically related to the interim periods.  The Company’s effective tax rate was 36.1% for the three months ended June 30, 2012 and 34.1% for the three months ended June 30, 2011.  The Company’s effective tax rate was 36.9% for the six months ended June 30, 2012 and 35.2% for the six months ended June 30, 2011. The increase in the Company’s effective tax rate for three and six months ended June 30, 2012 was primarily a result of the mix of pretax income and the different effective tax rates of the tax jurisdictions in which it operates.

As of June 30, 2012 and December 31, 2011, the Company had unrecognized tax benefits of approximately $2.5 million and $2.0 million, respectively.  The entire amount of the unrecognized tax benefits would affect the effective tax rate if recognized.  As of June 30, 2012, the Company is subject to U.S. Federal income tax examinations for the tax years 2008 through 2011, and to non-U.S. income tax examinations for the tax years 2004 through 2011.  In addition, the Company is subject to state and local income tax examinations for the tax years 2004 through 2011.