Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes

Income Taxes

Note 11.    Income Taxes

The total amount of unrecognized tax benefits that would affect the effective tax rate if recognized was $1.58 million at September 30, 2011 and $1.52 million at December 31, 2010.  Interest and penalties were recognized through the income tax provision.  For the nine months ending September 30, 2011 and 2010, we recognized approximately $(0.04) million and $0.03 million in interest, net of tax effect, and penalties, respectively.  Interest and penalties of approximately $0.56 million and $0.60 million were accrued at September 30, 2011 and December 31, 2010, respectively.

Tax years that remain open and subject to audit include the federal 2008-2010 years and the Indiana 2007-2010 years.  Additionally, during the first quarter of 2011 we reached a state tax settlement for the 2008 year and as a result recorded a reduction of unrecognized tax benefits in the amount of $0.84 million that affected the effective tax rate and increased earnings in the amount of $0.47 million.  We do not anticipate a significant change in the amount of uncertain tax positions within the next 12 months.