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Income Taxes
9 Months Ended
Sep. 30, 2011
Income Taxes [Abstract] 
Income Taxes
13. Income Taxes
The effective income tax rate was 82.2% and 94.4% for the nine months ended September 30, 2011 and September 30, 2010. The higher tax rate in 2010 and 2011 compared to our statutory tax rate of 40% is due to the write-off of deferred tax assets on expired or cancelled stock options of $1.3 million and $0 .2 million in 2010 and 2011.
As of September 30, 2011 and December 31, 2010, GTSI had $0.1 million and $0.1 million, respectively, of total unrecognized tax benefits most of which would reduce its effective tax rate if recognized. The Company does not believe that the total amount of unrecognized tax benefits will significantly change within 12 months of the reporting date.
GTSI’s practice is to recognize interest and/or penalties related to uncertain tax positions in income tax expense. The Company had less than $0.1 million accrued for interest and less than $0.1 million accrued for penalties as of September 30, 2011 and December 31, 2010. During the first nine months of 2011, the amount accrued for interest decreased by less than $0.1 million relating to the expiration of applicable statutes of limitations and increased by an immaterial amount for the remaining issues.