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Income Taxes
9 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes

(6)        Income Taxes

 

                The effective tax rate was 29.2% and 32.9% for the first nine months of fiscal 2012 and 2011, respectively.  The decline in the effective tax rate was due primarily to cumulative prior year credits in a foreign tax jurisdiction that were approved during the first half of the current fiscal year and additional U.S. foreign tax credits and research and development credits for fiscal 2011 realized during the third quarter of fiscal 2012 as a result of filing the U.S. Federal, state and local income tax returns. 

 

As of June 30, 2012, the Company's U.S. income tax returns for fiscal 2008 and subsequent years remained subject to examination by the Internal Revenue Service (“IRS”).  As of June 30, 2012, the Company is not currently under any income tax audit by the IRS or any state, local or foreign jurisdictions.  State income tax returns generally have statutes of limitations for periods between three and four years from the date of filing.  The Company's foreign operations have statutes of limitations on the examination of income tax returns for periods between two and six years.

 

The Company's reserves for uncertain tax positions 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.  During the third quarter of fiscal 2012, the Company recorded a $140 tax benefit due to a lapsing of the fiscal year 2008 U.S. statute of limitations.  The amount of unrecognized tax benefits and the related interest and penalties at June 30, 2012 was $679. The amount of unrecognized tax benefits and the related interest and penalties expected to reverse within the next year is estimated to be approximately $225 to $245.  

 

            On December 23, 2011, the IRS published regulations (in proposed and temporary format) under IRC Section 263(a) on the deduction and capitalization of expenditures related to tangible property, i.e., the “repair regulations.”  These regulations are generally effective for taxable years beginning on or after January 1, 2012, or where applicable, to amounts paid or incurred to produce or acquire property in a taxable year beginning on or after such date.  On March 7, 2012, additional Revenue Procedures were released addressing sections of the regulations published in December 2011.  The Company is currently researching its existing policies, along with the IRS Regulations and Revenue Procedures issued, to understand the impact to the Company's income tax liability.  The Company does not expect these regulations and procedures to materially impact its consolidated financial statements.