Income Tax Expense

9 Months Ended

Jun. 30, 2012

Income Tax Expense [Abstract]

Income Tax Expense

9. INCOME TAX EXPENSE

The third quarter 2012 effective income tax rate was 28.0% compared to 35.3% in the third quarter of 2011. The effective income tax rate in the first nine months of 2012 was 33.8% compared to 35.0% in the prior year period. The income tax expense in the third quarter and first nine months of 2012 was favorably impacted by a $1.8 million decrease of uncertain tax positions substantially as a result of a lapse of the applicable statute of limitations reducing the third quarter and year-to-date effective tax rate by 9.6% and 4.2%, respectively. The income tax expense in the first nine months of 2011 was favorably impacted by net research tax credits of $0.4 million, reducing the rate for the first nine months of 2011 by 0.8%, as a result of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Company estimates the annual effective income tax rate for fiscal 2012 will be approximately 35%.

The unrecognized tax benefits of the Company decreased by $1.8 million during the three-month period ended June 30, 2012 substantially as a result of a lapse of the applicable statute of limitations. The Company does not anticipate a material change in the amount of unrecognized tax benefits in the next twelve months.