Taxes

3 Months Ended

Mar. 31, 2013

Taxes

9. Taxes

The effective tax rate increased to 41.5% for the three-month period ended March 31, 2013, from 38.1% for the three-month period ended March 31, 2012. This increase for the three-month period ended March 31, 2013, as compared to the same period of 2012, resulted primarily from certain nondeductible transaction costs anticipated during 2013 in relation to the pending Merger.

During the three-month period ended March 31, 2013, the Company’s unrecognized tax benefits for certain tax contingencies decreased from $1.3 million as of December 31, 2012, to $1.1 million as of March 31, 2013. The decrease is primarily attributable to the settlement of various state income tax audits. If recognized, the $1.1 million in unrecognized tax benefits would reduce the Company’s effective tax rate in future periods. Income taxes paid for the three-month periods ended March 31, 2013 and 2012, were $0.4 million and $0.3 million, respectively.