Income Taxes

9 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

(6)        Income Taxes

The effective tax rate for the first nine months of fiscal 2011 and fiscal 2010 was 32.9% and 31.2%, respectively. The increase in effective tax rate was due primarily to the recognition, in the third quarter of fiscal 2010, of a $475 benefit of prior year deductions for domestic production activities not included previously on the Company's Federal income tax returns.

As of June 30, 2011, the Company's U.S. income tax returns for fiscal 2008 and subsequent years remained subject to examination by the Internal Revenue Service ("IRS"). The Company is not currently under audit by the IRS. State income tax returns generally have statute of limitations for periods between three and four years from the date of filing. The Company is currently undergoing a state income tax audit. The Company is not currently under audit in any foreign jurisdictions. The Company's foreign operations have statute of limitations on the examination of tax returns for periods between two and eight years.

The Company's uncertain tax reserves are reviewed periodically and are adjusted as events occur that affect the estimated liability for additional taxes, such as the lapsing of applicable statutes of limitations, the conclusion of tax audits and the measurement of additional tax. The Company's uncertain tax liability was $833 and $767 at June 30, 2011 and September 30, 2010, respectively. During the third quarter of fiscal 2011, the Company recognized a $246 tax benefit due to lapsing of the fiscal year 2007 US and IL statutes of limitations. The amount of unrecognized tax benefits and the related interest and penalties expected to reverse within the next fiscal year is estimated to be between $30 and $300.