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Income Taxes
6 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes

Note 11. Income Taxes

The Company recorded provisions for income taxes of $4,791,000 and $9,636,000 for the three and six months ended December 31, 2011, respectively, and $5,201,000 and $9,854,000 for the three and six months ended December 31, 2010, respectively. The effective tax rate was 35.3% and 35.8% for the three and six months ended December 31, 2011, respectively, and 31.0% and 34.4% for the three and six months ended December 31, 2010, respectively. The effective tax rate of 35.3% and 35.8% are estimated to be higher than the federal statutory rate primarily due to the impact of state taxes, stock option expenses, and the expiration of federal research & development tax credits on December 31, 2011.

As of December 31, 2011, the Company had a liability for gross unrecognized tax benefits of $7,566,000, substantially all of which, if recognized, would affect the Company's effective tax rate. During the three and six months ended December 31, 2011, there was no material change in the total amount of the liability for gross unrecognized tax benefits.

The Company's policy is to include interest and penalties related to unrecognized tax benefits within the provision for taxes on the consolidated statements of operations. As of December 31, 2011, the Company had a liability for accrued interest and penalties related to the unrecognized tax benefits of $780,000. During the three and six months ended December 31, 2011, there was no material change in the total amount of the liability for accrued interest and penalties related to the unrecognized tax benefits.

The Company is subject to U.S. federal income tax as well as income taxes in many state and foreign jurisdictions. In September 2011, the Internal Revenue Service met with the Company to commence a pre-examination of the federal income tax returns for tax years 2007 through 2009. The Company does not expect a resolution to be reached during the next twelve months. While management believes that the Company has adequately provided for all tax positions, amounts asserted by tax authorities could be greater or less than the Company's current position. Accordingly, the Company's provision on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. The statutes of limitation in state jurisdictions remain open in general for tax years 2006 through 2012. The major foreign jurisdictions remain open for examination in general for tax years 2002 through 2012.

The Company is currently under audit by the Internal Revenue Service and the Netherlands tax authorities, but does not expect the outcome of these examinations will have a material impact on its financial position, results of operations or liquidity in the next 12 months.