me Taxes

Total pretax income, classified by source of income, was as follows:



	Years ended December 31,
	2011		2010		2009
	(In thousands)
U.S.	$	138,102	$	140,511	$	135,927
Outside the U.S.	19,955		17,700		14,707
Total pretax income	$	158,057	$	158,211	$	150,634

The provision for income taxes, classified by the timing and location of payment, was as follows:



	Years ended December 31,
	2011			2010			2009
	in thousands
Current tax expense
Federal	$	40,642		$	48,494		$	41,833
State	2,629			3,609			3,436
Foreign	1,712			1,892			1,571
Deferred tax (benefit) expense
Federal	2,151			(3,264		)	5,452
State	544			310			85
Foreign	(17		)	(271		)	7
Income taxes	$	47,661		$	50,770		$	52,384

Net deferred tax assets consisted of:



	December 31,
	2011			2010
	(In thousands)
Property, equipment and intangible assets	$	(9,875	)	$	(8,193	)
Accrued compensation	20,553			19,107
Accrued expenses	5,302			11,424
Foreign operations	66			313
Capital loss carryovers	1,047			951
Deferred tax asset on unrecognized tax positions	2,138			954
Other	650			308
Net deferred tax assets	$	19,881		$	24,864

Balance sheet presentation:



	December 31,
	2011			2010
	(In thousands)
Current deferred tax assets (liability)	$	(2,784	)	$	429
Non-current net deferred tax assets	22,665			24,435
Net deferred tax assets	$	19,881		$	24,864

The statutory United States federal income tax rate reconciles to the effective income tax rates as follows:




	Years ended December 31,
	2011		2010		2009
Statutory U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	1.7	%	1.6	%	1.7	%
Benefits and taxes related to foreign operations	(3.4	)%	(2.7	)%	(2.4	)%
Unrecognized tax positions	(0.8	)%	1.3	%	(0.3	)%
Adjustment to current and deferred taxes, prior years	(0.9	)%	(2.1	)%	—	%
Other	(1.5	)%	(1.0	)%	0.8	%
Effective income tax rates	30.1	%	32.1	%	34.8	%

In 2011 and 2010, the effective income tax rates were 30.1% and 32.1%, respectively. The effective income tax rate for the year ended December 31, 2011 was lower than the United States federal statutory rate of 35% primarily due to the impact of foreign operations, $1.4 million of changes in unrecognized tax positions and the identification of $2.8 million of additional federal tax benefits, partially offset by state income taxes. Additionally, an adjustment to our current federal taxes payable of $1.4 million reduced the effective tax rate. The effective income tax rate for the year ended December 31, 2010 was lower than the United States federal statutory rate of 35% primarily due to a $3.3 million adjustment to our deferred tax assets and the identification of $1.6 million of additional federal income tax benefits, partially offset by an increase of $1.6 million related to the identification of unrecognized tax positions. The effective income tax rate for 2010 was also impacted by the effect of foreign operations, partially offset by state income taxes.

As of December 31, 2011 and 2010, the Company’s gross unrecognized tax benefits totaled $4.6 million and $6.0 million, respectively. It is expected that $4.6 million of the total as of December 31, 2011 would favorably affect the effective tax rate if resolved in the Company’s favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:



	2011			2010			2009
	(In thousands)
Balance, January 1	$	6,017		$	4,246		$	5,673
Changes for tax positions of prior years	173			(18		)	(33		)
Increases for tax positions related to the current year	2,062			2,563			667
Settlements and lapsing of statutes of limitations	(3,682		)	(774		)	(2,061		)
Balance, December 31	$	4,570		$	6,017		$	4,246

It is reasonably possible that the Company’s unrecognized tax benefits could decrease within the next 12 months by as much as $1.4 million due to settlements and the expiration of applicable statutes of limitations.

The Company is generally no longer subject to income tax examinations for years prior to 2008. The practice of the Company is to recognize interest and penalties related to income tax matters in the provision for income taxes. The Company did not incur any material interest or penalties for 2011, incurred $1.3 million in 2010 and did not incur any material amounts for 2009. The Company had $1.9 million and $2.1 million of accrued interest and penalties at December 31, 2011 and 2010, respectively.

Deferred United States income taxes have not been recorded for temporary differences related to investments in certain foreign subsidiaries and corporate joint ventures. These temporary differences consisted primarily of undistributed earnings considered permanently invested in operations outside the United States. Determination of the deferred income tax liability on these unremitted earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs.