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Income Taxes
3 Months Ended
Mar. 31, 2012
Income Tax Expense (Benefit) [Abstract]  
Income Taxes
Income Taxes
At March 31, 2012, the Company has recorded a $1,535 liability, in accordance with ASC 740-10-25 “Income Taxes,” for gross unrecognized tax benefits. This amount, if ultimately recognized, will reduce the Company’s annual effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. At March 31, 2012, the Company had accrued approximately $77 for the payment of interest and penalties. During the first quarter of 2012 the Internal Revenue Service (“IRS”) completed an examination of the Company's amended U.S. income tax returns for 2005 and 2006. As a result of the completion of the examination, the Company's gross unrecognized tax benefits decreased by $905.
The effective tax rate for the three months ended March 31, 2012 of 29.0% differs from the U.S. federal statutory rate of 35% primarily due to the decrease of gross unrecognized tax benefits and the effect of income earned by certain of the Company's foreign entities being taxed at lower rates than the federal statutory rate. The effective tax rate for the three months ended March 31, 2011 of 31.5% differs from the federal statutory rate primarily due to the effect of income earned by certain of the Company’s foreign entities being taxed at lower rates than the federal statutory rate.