XML 43 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
 9 Months Ended
Jul. 31, 2012
INCOME TAXES
11. INCOME TAXES

 

Our effective tax rate for the first nine months of fiscal 2012 was 30% reflecting no change in rate for the same period in fiscal 2011. We recorded an income tax provision during the first nine months of fiscal 2012 of approximately $5.0 million compared to $3.7 million 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 $131,000 as of July 31, 2012 compared to $275,000 as of October 31, 2011 and in each case included accrued interest.   The reduction in unrecognized tax benefits was primarily due to certain tax positions that effectively settled.

 

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 July 31, 2012, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $13,000.

 

 

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) has concluded their examination of our federal income tax returns for the years 2006, 2007 and 2010. The IRS did not examine tax returns for the tax years 2008 and 2009.  The IRS examination resulted in no adjustments.