Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes

8. INCOME TAXES

Our tax charge for the nine months ended September 30, 2012 was $7.8 million which represents an effective tax rate for this period of 48.6%. The underlying tax rates in our key jurisdictions are 19% in Poland, 20% in Russia, 21% in Ukraine, 16% in Hungary and 35% in the United States. Changes in the Company’s uncertain income tax positions, excluding the related accrual for interest and penalties, for the nine-month period ended September 30, 2012 result from additions to accruals for current and prior year tax positions. There were no reductions for prior year tax positions, settlements or lapses in statutes of limitations. As of September 30, 2012 and December 31, 2011, the uncertain income tax position balance was $8.0 million and $7.1 million, respectively.