10.

Income Taxes

Income tax expense for the three months ended March 31, 2012 and 2011 was $11,177 and $9,037, respectively. The following table is a reconciliation of the Company’s statutory income tax expense to its effective tax rate for the three months ended March 31, 2012 and 2011:

(Amounts in Thousands)	2012			2011
Income before equity in earnings (loss) of unconsolidated subsidiaries	$	48,033		$	60,540
Tax at federal statutory rate of 35%	$	16,812		$	21,189
Tax effects resulting from:
Net income of non-includible foreign subsidiaries		(4,568	)		(7,643	)
Other, net		(1,067	)		(4,509	)
		11,177			9,037
Effective tax rate		23.3	%		14.9	%

The Company’s management believes that it will realize the benefits of its deferred tax assets, which is included as a component of the Company’s net deferred tax liability, and, accordingly, no valuation allowance has been recorded for the periods presented. The Company does not provide for income taxes on the unremitted earnings of foreign subsidiaries where, in management’s opinion, such earnings have been indefinitely reinvested. It is not practical to determine the amount of unrecognized deferred tax liabilities for temporary differences related to these investments.

The Company’s major taxing jurisdictions include the U.S. (federal and state), the United Kingdom and Ireland. The years subject to potential audit vary depending on the tax jurisdiction. Generally, the Company’s statute of limitation is open for tax years ended December 31, 2007 and forward. As permitted by FASB ASC 740-10, the Company adopted an accounting policy to prospectively classify accrued interest and penalties related to any unrecognized tax benefits in its income tax provision. Previously, the Company’s policy was to classify interest and penalties as an operating expense in arriving at pre-tax income. At March 31, 2012, the Company does not have any accrued interest and penalties related to unrecognized tax benefits in accordance with FASB ASC 740-10.

The earnings of certain of the Company’s foreign subsidiaries have been indefinitely reinvested in foreign operations. Therefore, no provision has been made for any U.S. taxes or foreign withholding taxes that may be applicable upon any repatriation or sale. The determination of any unrecognized deferred tax liability for temporary differences related to investments in certain of the Company’s foreign subsidiaries is not practicable. As of March 31, 2012 and December 31, 2011, the financial reporting basis in excess of the tax basis for which no deferred taxes have been recognized was approximately $235,900 and $223,300, respectively.