Income Taxes

6 Months Ended

Mar. 31, 2013

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 for its continuing operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first six months of fiscal 2013 is 30%, compared to 34% for the same period of fiscal 2012, 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					Six Months Ended
	March 31,					March 31,
	2013			2012		2013			2012
Current income tax provision:
U.S. federal	$	418		$	620	$	837		$	954
U.S. state and local		95			119		165			177
Non-U.S		33			22		39			37
Total current tax provision		546			761		1,041			1,168
Deferred income tax provision (benefit):
U.S. federal		(10	)		16		(10	)		(9	)
Non-U.S		0			0		0			0
Total deferred tax provision (benefit)		(10	)		16		(10	)		(9	)
Income tax provision	$	536		$	777	$	1,031		$	1,159

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states, local and non-U.S. jurisdictions. The Company’s federal income tax returns for fiscal years 2010 and 2011, as well as the amended federal income tax returns for fiscal 2008 and 2009, are under review by the Internal Revenue Service, the outcome of which is not known at this time. The Company believes it has appropriate support for its federal income tax returns. 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 2006.

At March 31, 2013 and September 30, 2012, the Company recorded liabilities of $141 and $120, 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, 2012	$	120
Increase due to tax positions taken in prior years		3
Increase due to tax positions taken in current year		18
Balance at March 31, 2013	$	141