Income Tax Expense

3 Months Ended

Dec. 31, 2011

Income Tax Expense [Abstract]

Income Tax Expense

8. INCOME TAX EXPENSE

The first quarter 2012 effective income tax rate was 37.6% compared to 31.6% in the first quarter of 2011. The loss of state research credit carryforwards, resulting from the merger of certain subsidiaries of the Company, unfavorably impacted the first quarter 2012 income tax expense by $0.2 million and the effective tax rate by 2.4%. On December 17, 2010, the President signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which reinstated the research credit retroactive to January 1, 2010. This favorably impacted the first quarter 2011 income tax expense by a $0.4 million, net, research credit reducing the 2011 first quarter effective income tax rate by 2.8%. The Company estimates the fiscal 2012 effective tax rate will be approximately 34.0%.

There was no material change in the unrecognized tax benefits of the Company during the three-month period ended December 31, 2011. The Company anticipates a $1.8 million reduction in the amount of unrecognized tax benefits in the next twelve months as a result of a lapse of the applicable statute of limitations.