Income Taxes and Uncertain Tax Positions

3 Months Ended

Mar. 31, 2012

Income Tax Expense Benefit [Abstract]

Income Tax Disclosure [Text Block]

Note 3 – Income Taxes and Uncertain Income Tax Positions

The Company's first quarter of 2012 effective tax rate was21.5%, as compared to an effective tax rate of 20.6% for the first quarter of 2011. Both quarters' effective tax rates reflect the expiration of applicable statutes of limitations for uncertain tax positions of approximately $0.12and $0.11 per diluted share for 2012 and 2011, respectively.

The FASB's guidance regarding accounting for uncertainty in income taxes prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. The guidance further requires the determination of whether the benefits of tax positions will be more likely than not sustained upon audit based upon the technical merits of the tax position. For tax positions that are determined to be more likely than not sustained upon audit, a company recognizes the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not determined to be more likely than not sustained upon audit, a company does not recognize any portion of the benefit in the financial statements. Additionally, the guidance provides for derecognition, classification, penalties and interest, accounting in interim periods, disclosure and transition.

As of March 31, 2012, the Company's cumulative liability for gross unrecognized tax benefits was $12,482. At December 31, 2011, the Company's cumulative liability for gross unrecognized tax benefits was $12,719.

The Company continues to recognize interest and penalties associated with uncertain tax positions as a component of taxes on income before equity in net income of associated companies in its Condensed Consolidated Statement of Income. The Company recognized ($215) for interest and $95 for penalties on its Condensed Consolidated Statement of Income for the three months endedMarch 31, 2012, and ($125) for interest and $279 for penalties during the three months endedMarch 31, 2011. As of March 31, 2012, the Company had accrued $2,109for cumulative interest and $1,428 for cumulative penalties, and $2,268 for cumulative interest and $1,298 for cumulative penalties at December 31, 2011.

During the first quarter of 2012, the Company derecognized uncertain tax positions due to the expiration of the applicable statutes of limitations for certain tax years of approximately $1,072.

The Company estimates that during the year ended December 31, 2012 it will reduce its cumulative liability for gross unrecognized tax benefits by approximately $1,700 to $1,800 due to the expiration of the statute of limitations with regard to certain tax positions. This estimated reduction in the cumulative liability for unrecognized tax benefits does not consider any increase in liability for unrecognized tax benefits with regard to existing tax positions or any increase in cumulative liability for unrecognized tax benefits with regard to new tax positions for the year ended December 31, 2012.

The Company and its subsidiaries are subject to U.S. Federal income tax, as well as the income tax of various state and foreign tax jurisdictions. Tax years that remain subject to examination by major tax jurisdictions include the Netherlandsand the United Kingdom from 2006, Brazil and Spain from 2007, the United States from 2008, China from 2009, Italy from 2010, and various domestic state tax jurisdictions from 1993.