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INCOME TAXES
 3 Months Ended
Jan. 31, 2012
INCOME TAXES
11. INCOME TAXES

 

Our effective tax rate for the first three months of fiscal 2012 was 33% in comparison to 37% for the same period in fiscal 2011. We recorded an income tax provision during the first three months of fiscal 2012 of approximately $2.3 million compared to $899,000 for the same period in fiscal 2011, as a result of the increase in pre-tax income period-over-period.

 

Our unrecognized tax benefits were $275,000 as of January 31, 2012 and October 31, 2011 and in each case included accrued interest.   

 

We recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision.  We believe our unrecognized tax positions meet the minimum statutory threshold to avoid payment of penalties and, therefore, no tax penalties have been estimated.  As of January 31, 2012, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $31,000, which did not include the federal tax benefit of interest deductions.

 

We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions.  The statutes of limitations with respect to unrecognized tax benefits will expire between July 2014 and July 2015.

 

The Internal Revenue Service (IRS) is currently examining our federal income tax returns for the years 2006-2010. At this time, we do not expect to have any significant examination adjustments that would result in a material change to our financial position or results of operations.