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Income Tax Expense
6 Months Ended
Jun. 30, 2012
Income Tax Expense [Abstract]  
Income Tax Expense

NOTE 10.  INCOME TAX EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2012

 

2011

 

2012

 

2011

Earnings before income taxes

 

$62.9

 

$61.2

 

$94.1

 

$98.8

Income tax expense

 

 21.1

 

 23.3

 

 34.1

 

 47.4

Effective tax rate

 

33.5%

 

38.1%

 

36.2%

 

48.0%

 

 

 

 

 

 

 

 

 

The effective tax rate for the second quarter of 2012 was lower than the comparable period in 2011, primarily due to the favorable tax impact from our mix of income from international operations. 

 

The effective tax rate for the first six months of 2012 was lower than the first six months of 2011 primarily due to the favorable tax impact from our mix of income from international operations.  Additionally, the effective tax rate was lower in the first six months of 2012 due to a decrease in the valuation allowance for foreign tax credits based on our projected ability to utilize these credits to offset future taxable income.

 

We do not expect to record any material changes during 2012 to unrecognized tax benefits that were claimed on tax returns covering tax years ending on or before December 31, 2011.

 

As of June 30, 2012 we consider foreign unremitted earnings to be permanently reinvested.