Income Taxes Level 1 (Notes)

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items which are recorded in the period in which they occur. Discrete items include, among others, such events as changes in estimates due to the finalization of tax returns, tax audit settlements, expiration of statute of limitations, and increases or decreases in valuation allowances on deferred tax assets. Our effective tax rate was 20.5% and 34.7% for the three months ended September 30, 2011 and 2010, respectively. Our effective tax rate was 33.5% and 38.8% for the nine months ended September 30, 2011 and 2010, respectively.

We sold our Puerto Rican subsidiary in the third quarter of 2011. Our outside tax basis in the business was higher than our book basis. Consequently, we recognized a tax loss that was higher than the book loss on the sale which is permanent in nature. The decrease in the effective tax rate for the three and nine months ended September 30, 2011 is primarily due to that sale. Additionally, our effective tax rate for the three months endedSeptember 30, 2010 was reduced by the release of state valuation allowances due to the legal restructuring of our entities in certain states.

We file numerous federal, state and foreign income tax returns. A number of years may elapse before particular tax matters, for which we have unrecognized tax benefits, are audited and finally settled. In the United States, the tax years 1999 through 2002 remain under examination by the Internal Revenue Service and we are at the IRS Appeals administrative level on certain disputed issues that came out of its examination of tax years 2003 through 2005. Various state and foreign jurisdictions are auditing years through 2009. The outcome of each of these audits cannot be predicted at this time. It is reasonably possible that changes to our global unrecognized tax benefits could be significant; however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of increases or decreases that may occur within the next twelve months cannot be made.