Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

9.  Income Taxes

A reconciliation of the liability for unrecognized tax benefits is as follows:

	Noncurrent tax liabilities
	(in thousands)
Balance at January 1, 2011	$	36,846
Additions based on current year positions	661
Reductions based on prior year positions	(1,397		)
Decreases due to settlements and/or reduction in liabilities	(7,317		)
Currency translation adjustments	1,680
Balance at June 30, 2011	$	30,473

The decrease in the Company’s liability for unrecognized tax benefits during the six months ended June 30, 2011 was primarily due to the reversal of previously recorded unrecognized tax benefit reserves in the second quarter of 2011 for years that either the statue of limitations has lapsed in 2011 or that have been favorably settled.

The Company’s effective tax rate (income taxes as a percentage of income from operations before income taxes) decreased to 33.5% and 37.5% for the three and six months ended June 30, 2011, respectively, as compared to 64.7% and 43.1% for the three and six months ended June 30, 2010, respectively, primarily due to the reversal of previously recorded unrecognized tax benefit reserves in the second quarter of 2011 for years that either the statue of limitations has lapsed in 2011 or that have been favorably settled plus the impairment charge in the second quarter of 2010 on the Company’s Columbus property which had an unfavorable impact to the Company’s effective rate by lowering income from operations before income taxes.