Income Taxes

9 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

6. Income Taxes

For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company's projected effective tax rate through the first nine months of fiscal 2011 is 32%, compared to 35% for the same period in fiscal 2010, and differs from the U.S. federal statutory rate due primarily to (i) the impact of U.S. state and local income taxes, (ii) a domestic production activities deduction, (iii) application of tax credits and (iv) the recognition of U.S. federal income taxes on undistributed earnings of non-U.S. subsidiaries. The income tax provision consists of the following:

	Three Months Ended June  30,					Nine Months Ended June  30,
	2011			2010		2011			2010
Current income tax provision:
U.S. federal	$	598		$	404	$	1,937		$	1,812
U.S. state and local		136			70		333			283
Non-U.S		96			11		211			59
Total current tax provision		830			485		2,481			2,154
Deferred income tax provision (benefit):
U.S. federal		(13	)		38		(4	)		22
Non-U.S		(2	)		0		(4	)		0
Total deferred tax provision		(15	)		38		(8	)		22
Income tax provision	$	815		$	523	$	2,473		$	2,176

The Company is subject to U.S. federal income taxes and to income taxes in various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2002.

At June 30, 2011 and September 30, 2010, the Company recorded liabilities of $123 and $63, respectively, for uncertain tax positions and any related interest and penalties. The Company classifies any interest and penalties related to uncertain tax positions in income tax expense. A summary of activity related to the Company's uncertain tax positions is as follows:

Balance at September 30, 2010	$	63
Increase due to tax positions taken in the current years		24
Increase due to tax positions taken in prior years		36
Balance at June 30, 2011	$	123