Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes

Income Taxes

10.  Income Taxes

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

	Noncurrent tax liabilities
	(in thousands)
Balance at January 1, 2013	$	20,393
Additions based on current year positions	2,194
Additions based on prior year positions	1,916
Currency translation adjustments	(1,459		)
Balance at June 30, 2013	$	23,044

The increase in the Company’s liability for unrecognized tax benefits during the six months ended June 30, 2013 was primarily due to recording additional tax reserves and 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 146.2% and 60.5% for the three and six months ended June 30, 2013, respectively, as compared to 41.0% and 39.1% for the three and six months ended June 30, 2012, respectively, primarily due to the non-deductible portion of the Company’s goodwill impairment charge related to Argosy Casino Sioux City.

At June 30, 2013 and December 31, 2012, prepaid expenses within the condensed consolidated balance sheets included prepaid income taxes of $30.0 million and $68.4 million, respectively.