Taxes

6 Months Ended

Jun. 30, 2012

Taxes

12. Taxes

The effective tax rate decreased to 37.8% for the six months ended June 30, 2012, from 38.6% for the six months ended June 30, 2011. The decrease results primarily from the favorable settlement of various audits during the six-month period ended June 30, 2012.

During the six-month period ended June 30, 2012, the Company’s unrecognized tax benefits for certain income tax contingencies decreased from $1.3 million as of December 31, 2011, to $1.2 million as of June 30, 2012. The decrease is attributable to the settlement of various audits. If recognized, the $1.2 million in unrecognized tax benefits would reduce the Company’s effective tax rate in future periods.

Income taxes paid for the six-months ended June 30, 2012 and 2011, were $19.0 million and $14.3 million, respectively.