Income Taxes

9 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

10. Income Taxes

The United States statutory tax rate for the three and nine months ended June 30, 2012 and 2011 was 35%. The Company’s effective tax rates for the three months ended June 30, 2012 and 2011 were 31.1% and 32.0%, respectively. The Company’s effective tax rates for the nine months ended June 30, 2012 and 2011 were 32.0% and 32.1%, respectively. Compared to the United States statutory rate, the Company’s lower effective tax rates for each of the periods ended June 30, 2012 and 2011 primarily resulted from a manufacturers’/producers’ deduction available to U.S. manufacturers. The United States Congress has not extended the research and experimentation tax credit to periods beyond calendar year 2011. As a result, the Company cannot recognize such tax credits beyond the first fiscal quarter ended December 31, 2011.

From time to time the Company is the subject of audits by various tax authorities that can result in claims and assessments and additional tax payments, penalties and interest. The United States Internal Revenue Service (“IRS”) is in the process of conducting an audit of the Company’s United States Federal income tax returns for fiscal years 2009, 2008 and 2007. Management believes that the outcome of such audit will not have a material effect on the Company’s financial position, results of operations or cash flows.