Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes

8. 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 September 30, 2012 and 2011 due to the following (in thousands):

	2012					2011
Income tax expense at federal statutory rate	$	28,909		35.0	%	$	20,689		35.0	%
Changes resulting from:
Foreign income tax differential		(3,030	)	(3.6	)		(2,404	)	(4.1	)
Effect of statutory rate change		(3,473	)	(4.1	)		(467	)	(0.8	)
State taxes, net of federal benefit		1,366		1.7			1,262		2.2
Foreign-sourced nontaxable income		(1,826	)	(2.2	)		(731	)	(1.2	)
Other		997		1.0			248		0.4
Provision for income taxes	$	22,943		27.8	%	$	18,597		31.5	%

At September 30, 2012 and December 31, 2011, notes payable and other obligations—noncurrent, included liabilities for unrecognized income tax benefits of $6.9 million and $4.2 million, respectively. During the three months ended September 30, 2012 and 2011 the Company recognized additional liabilities of $1.2 million and $0.5 million, respectively. During the nine months ended September 30, 2012 and 2011 the Company recognized additional liabilities of $1.9 million and $0.8 million, respectively. During the three and nine months ended September 30, 2012 and 2011, amounts recorded for accrued interest and penalties expense related to the unrecognized income tax benefits were 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 2009. The statute of limitations for the Company’s U.K. income tax returns has expired for years prior to 2010. The statute of limitations has expired for years prior to 2008 for the Company’s Czech Republic income tax returns.