INCOME TAXES

6 Months Ended

Jun. 30, 2012

INCOME TAXES

INCOME TAXES

15. INCOME TAXES

        Our effective income tax rate for the three and six months ended June 30, 2012 was a benefit of 0.1 percent and a provision of 27.3 percent, respectively, as compared to provisions of 15.0 percent and 27.3 percent for the three and six months ended June 30, 2011, respectively. The difference in the effective rate as compared to the U.S. statutory federal income tax rate in 2012 was primarily due to provisions for state tax and various permanent differences including deductions for manufacturing activities and the favorable impact of changes in uncertain tax positions ($3.3 million and $6.4 million for the three and six months ended June 30, 2012, respectively). The difference in the effective tax rate as compared to the U.S. statutory federal income tax rate in 2011 was primarily due to provisions for state tax, various permanent differences, the release of a portion of the valuation allowance against certain deferred tax assets in Canada, and the favorable impact of changes in various uncertain tax positions ($2.1 million and $1.7 million for the three and six months ended June 30, 2011, respectively).