Note 8 — Income Taxes

The effective tax rates for the three- and nine-month periods ended September 30, 2013 were 13.5% and 17.7%, respectively. This was less favorable than the effective tax rates for the three- and nine-month periods ended September 30, 2012. The variance is primarily attributable to projected year-over-year increases in profitability in the United States.

We believe our recorded assets and liabilities are reasonable; however, tax laws and regulations are subject to interpretation and tax litigation is inherently uncertain, and therefore our assessments can involve a series of complex judgments about future events and rely heavily on estimates and assumptions. Income taxes have been provided based on the U.S. statutory rate of 35% and at the local statutory rate for each foreign jurisdiction adjusted for items that are allowed as deductions for federal and foreign income tax reporting purposes, but not for book purposes. The primary differences between the statutory rate and our effective rate from continuing operations are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012

Statutory rate	35.0	%	35.0	%	35.0	%	35.0	%
Foreign provision	(12.3)		(6.3)		(11.8)		(30.8)
Tax return to accrual adjustment	(4.0)		(2.8)		(2.3)		(1.1)
Change in U.K. tax rate	(5.6)		(12.8)		(3.3)		(5.2)
Other	0.4		(2.9)		0.1		(2.5)
Effective rate	13.5	%	10.2	%	17.7	%	(4.6)	%