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Income Taxes
9 Months Ended
Sep. 30, 2011
Income Taxes [Abstract] 
Income Taxes
8. Income Taxes:

During the third quarter of 2010, the Company reached a resolution with taxing authorities on certain income tax matters that were under review. In connection with this resolution, the Company recorded a reduction in reserves for uncertain tax positions of $9.6 million, excluding interest of $4.7 million and also recorded a reduction in its income tax provision of $10.9 million. In addition, the resolution resulted in an increase in additional paid-in capital of $3.4 million for excess tax benefits related to stock-based awards, which increased the Company's cash flow from financing activities.

The following table summarizes the activity related to the Company's gross unrecognized tax benefits for the nine months ended September 30, 2010 (in thousands):

 

     Nine Months  Ended
September 30, 2010		  

Balance at December 31, 2009

    $ 49,416   

Increases related to prior year tax positions

      374   

Decreases related to prior year tax positions

      (9,569 ) 

Increases related to current year tax positions

      1,696   

Settlements

      (605 ) 
  

 

 

  

Balance at September 30, 2010

    $ 41,312   
  

 

 

  

The Company's effective income tax rate was 38.3% and 39.0% for the three and nine months ended September 30, 2011, respectively, compared to 24.7% and 34.1% for the three and nine months ended September 30, 2010, respectively. The Company's effective income tax rate was favorably impacted in both 2010 periods by the $10.9 million reduction in its income tax provision resulting from the resolution of the tax matters.