Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 9. Income Taxes

The Company computes its provision for income taxes by applying the estimated annual effective tax rate to income from operations and adjusts the provision for discrete tax items recorded in the period. The effective tax rate was 40.4% and 40.9% in the three and six months ended June 30, 2012, respectively. The Company currently anticipates that its 2012 tax rate will be approximately 41.0%, excluding the effects of unrealized currency translation gains and losses. The effective tax rate was 42.4% and 41.6% in the three and six months ended June 30, 2011, respectively.

The Company made income tax payments of $10.8 million and $19.1 million in the three months ended June 30, 2012 and 2011, respectively, and $11.4 million and $20.5 million in the six months ended June 30, 2012 and 2011, respectively.

The Internal Revenue Service (“IRS”) recently commenced an examination of the Company’s U.S. income tax returns for 2008 through 2010 in the second quarter of 2012.