Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes

Income Taxes

(7) Income Taxes

The tax benefit from an uncertain tax position is recognized only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution.

During the nine months ended September 30, 2010, uncertain tax positions in the U.S. were resolved for the 2006 and 2008 fiscal years resulting in a decrease in our tax liability of $1.7 million and the related deferred tax asset of $0.3 million.  As a result of this, we recognized a net tax benefit of $0.9 million.

During the nine months ended September 30, 2011, no uncertain tax positions in the U.S. were resolved.

The Company had unrecognized tax benefits for tax positions taken of $13.6 million and $12.4 million at September 30, 2011 and December 31, 2010, respectively.  The Company had accrued interest expense of $1.5 million and $1.2 million, net of related tax effects, related to unrecognized tax benefits at September 30, 2011 and December 31, 2010, respectively.