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Income Tax
3 Months Ended
Jun. 30, 2011
Income Tax [Abstract]  
Income Tax
8. Income Tax
The provision for income taxes for the three months ended June 30, 2011 was approximately $9,880 as compared to approximately $6,989 for the same year ago period. The effective tax rates for the three months ended June 30, 2011 and 2010 were 34.2% and 36.6%, respectively. The provision for income taxes for the three months ended June 30, 2011 differs from the combined statutory rates primarily due to the impact of varying state income tax rates, tax-exempt interest income, and the qualified production activities deduction. The effective rate for the three months ended June 30, 2011 decreased as compared to the same prior year period primarily due to increased benefits from the qualified production activities deduction, research and development credits, which were not included in the provision for the same prior year period but included in the provision for the current year period, increased deductions related to incentive stock options that were exercised in the current quarter and fluctuations in the state effective tax rate.
Uncertain tax positions
As of June 30, 2011, the Company has provided a liability of $484 for unrecognized tax benefits related to various federal and state income tax matters. If recognized, $484 would impact the Company’s effective tax rate. The reserve for the three months ended June 30, 2011 decreased from the same year ago period by $175 due to the expiration of the statute of limitations of prior year tax positions of acquired companies.
The Company’s income tax returns filed for tax years 2007 through 2009 and 2006 through 2009 are subject to examination by the federal and state taxing authorities, respectively. The Company is currently under examination by the IRS and is under examination by one state income tax authority and pending examination by three additional state agencies. The Company does not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months.