Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes

12. Income Taxes

The effective income tax rate benefit was 29.8% and 38.2% for the three months ended March 31, 2012 and 2011, respectively. The decrease in the tax rate benefit from 2011 to 2012 was due to the write-off of deferred tax assets of $0.3 million in 2012 vs. $0.1 million in 2011 on expired or cancelled stock options.

As of March 31, 2012 and December 31, 2011, 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 March 31, 2012 and December 31, 2011. During the first three months of 2012, the amount accrued for interest increased by less than $0.1 million. Interest will continue to accrue on certain issues for the remainder of 2012 and beyond.