Taxes

9 Months Ended

Sep. 30, 2012

Taxes

11. Taxes

The effective tax rate decreased to 38.1% for the nine months ended September 30, 2012, from 39.5% for the nine-month period ended September 30, 2011. The effective tax rate through September 30, 2011 was impacted unfavorably by certain nondeductible Arbitron Mobile related operating losses. The effective tax rate through September 30, 2012 was reduced due to a favorable audit resolution with the Internal Revenue Service during 2012.

During the nine-month period ended September 30, 2012, the Company’s unrecognized tax benefits for certain income tax contingencies increased from $1.3 million as of December 31, 2011, to $1.6 million as of September 30, 2012. The increase is attributable to various state related issues. If recognized, the $1.6 million in unrecognized tax benefits would reduce the Company’s effective tax rate in future periods.

Income taxes paid for the nine-months ended September 30, 2012 and 2011, were $28.1 million and $21.1 million, respectively.