Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

7. Income Taxes

The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 35% to income before income taxes for the three months ended June 30, 2011 and 2010 due to the following (in thousands):

	2011					2010
Computed "expected" tax expense	$	18,840		35.0	%	$	15,800		35.0	%
Changes resulting from:
Foreign income tax differential		(2,164	)	(4.0	)		(1,675	)	(3.7	)
Sub-part F income		—		—			1,039		2.3
State taxes, net of federal benefit		730		1.4			985		2.2
Foreign-sourced nontaxable income		(793	)	(1.5	)		(1,016	)	(2.3	)
Other		500		0.9			368		0.8
Provision for income taxes	$	17,113		31.8	%	$	15,501		34.3	%

At June 30, 2011 and December 31, 2010, notes payable and other obligations—noncurrent, included liabilities for unrecognized income tax benefits of $4.2 million and $3.9 million, respectively. During the six months ended June 30, 2011 and 2010 the Company recognized additional liabilities of $0.2 million and $0.3 million, respectively. During the three months ended June 30, 2011 and 2010 the Company recognized additional liabilities of $0.1 million and $0.1 million, respectively. During the three and six months ended June 30, 2011 and 2010, amounts recorded for accrued interest and penalties expense related to the unrecognized income tax benefits was not significant.

The Company files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The statute of limitations for the Company's U.S. federal income tax returns has expired for years prior to 2007.