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Income Taxes
 6 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes

Note D—Income Taxes

Our second quarter 2012 income tax benefit of $44.2 million resulted in an effective income tax rate of 28.7%. Our first half 2012 income tax benefit of $39.7 million resulted in an effective income tax rate of 27.8%. Both of these periods reflect a $165.3 million goodwill and other intangible asset impairment loss that resulted in a $48.7 million tax benefit. That tax benefit is entirely reflected as a reduction to our deferred income tax liabilities. The effective tax rate of this benefit of 29.4% was less than the federal statutory rate of 35%, primarily due to a portion of goodwill impairment that was not deductible, partially offset by the addition of state income taxes. Our effective income tax rate is derived by estimating pretax income and income tax expense for the year ending December 31, 2012.

Harte-Hanks, or one of our subsidiaries, files income tax returns in the U.S. federal, U.S. state and foreign jurisdictions. For U.S. federal, U.S. state and foreign returns, we are no longer subject to tax examinations for years prior to 2007.

We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Income. We had approximately $0.2 million of interest and penalties accrued at June 30, 2012. We did not have a significant amount of interest or penalties accrued at December 31, 2011.