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Income Tax Expense
9 Months Ended
Sep. 30, 2012
Income Tax Expense [Abstract]  
Income Tax Expense

NOTE 11.  INCOME TAX EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2012

 

2011

 

2012

 

2011

Earnings before income taxes

 

$
94.9 

 

$
81.4 

 

$
190.8 

 

$
180.2 

Income tax expense

 

20.9 

 

29.8 

 

55.6 

 

77.2 

Effective tax rate

 

22.0% 

 

36.6% 

 

29.1% 

 

42.8% 

 

 

 

 

 

 

 

 

 

The effective tax rate for the third quarter and first nine months of 2012 was lower than the comparable periods of 2011, primarily due to a decrease in the valuation allowance relating to foreign tax credits as a result of tax planning that increased our ability to utilize these credits, partially offset by other items.   The effective tax rate for the first nine months of 2012 was also lower than the first nine months of 2011 due to the favorable tax impact from our mix of income from international operations. 

 

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 September 30, 2012 we consider foreign unremitted earnings to be permanently reinvested.