Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

Income Taxes

8.  Income Taxes

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

	Noncurrent tax liabilities
	(in thousands)
Balance at January 1, 2012	$	33,872
Additions based on current year positions	418
Additions based on prior year positions	3,180
Payments made on account	(262		)
Currency translation adjustments	(338		)
Balance at June 30, 2012	$	36,870

The increase in the Company’s liability for unrecognized tax benefits during the six months ended June 30, 2012 was primarily due to recording interest expense accruals for previously recorded unrecognized tax benefits.

The Company’s effective tax rate (income taxes as a percentage of income from operations before income taxes) increased to 41.0% and 39.1% for the three and six months ended June 30, 2012, respectively, as compared to 33.5% and 37.5% for the three and six months ended June 30, 2011, respectively.  The primary reason for the increase is due to the reversal of previously recorded unrecognized tax benefits in the second quarter of 2011 for years that either have been favorably settled or where the statute of limitations has lapsed.