INCOME TAXES

9 Months Ended

Sep. 30, 2012

INCOME TAXES

INCOME TAXES

NOTE 10.INCOME TAXES

During the nine months ended September 30, 2012, there were no material changes to our unrecognized tax benefits disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011. We do not anticipate our total unrecognized tax benefits to increase or decrease materially within the next twelve months.

Our effective tax rate for the three months ended September 30, 2012 was 37.4%, up from 33.4% for the three months ended September 30, 2011. The increase in the effective rate in the third quarter of 2012 is primarily the result of an increase in our estimated state income tax rate partially offset by favorable adjustments in the third quarter of 2011 related to filed 2010 tax returns.

Our effective tax rate for the nine months ended September 30, 2012 was 38.2%, up from 37.8% for the nine months ended September 30, 2011. The increase in the effective rate in the first nine months of 2012 is primarily the result of an increase in our estimated state income tax rate partially offset by favorable adjustments in the third quarter of 2011 related to filed 2010 tax returns.

We file a consolidated U.S. federal income tax return with the Internal Revenue Service as well as income tax returns in various states and Canada. We may be subject to examination by taxing authorities in the U.S. and Canada for tax years 2009 through 2011. Additionally, we may be subject to examinations by various state and local taxing jurisdictions for tax years 2007 through 2011. We are currently not aware of any examinations by taxing authorities.