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INCOME TAXES
 3 Months Ended
Jan. 31, 2013
INCOME TAXES [Abstract]  
INCOME TAXES
10. INCOME TAXES

 

Our effective tax rate for the first three months of fiscal 2013 was 39% in comparison to 33% for the same period in fiscal 2012. We recorded an income tax provision during the first three months of fiscal 2013 of approximately $1.4 million compared to $2.3 million for the same period in fiscal 2012, primarily as a result of the reduction in pre-tax income period-over-period. We have not provided any U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested. In the event these earnings are later distributed to the U.S., such distributions would likely result in additional U.S. tax that may be offset, at least in part by associated foreign tax credits.

 

Our unrecognized tax benefits were $140,000 as of January 31, 2013 and $132,000 as of October 31, 2012 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, 2013, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $15,000, 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.