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Income Taxes
9 Months Ended
Mar. 31, 2013
Income Taxes  
Income Taxes

Note 10 — Income Taxes

 

At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used in providing for income taxes on a year-to-date basis and may change in subsequent interim periods. The Company’s effective tax rate from continuing operations for the three and nine months ended March 31, 2013 was 31.8% and 37.7%, respectively, compared to 131.1% and 38.9% in same periods of the prior year.  The forecasted effective rates for fiscal 2013 differed from the U.S. federal statutory rate of 35% primarily due to state income taxes, permanent differences and a change in uncertain tax positions.

 

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is currently under examination by the Internal Revenue Service for fiscal year 2011. The IRS has concluded its federal examination for its fiscal years 2007 through 2009, while fiscal 2010 remains subject to federal examination. Due to non-conformity with the federal statute of limitations for assessment, certain states remain open from fiscal 2008.

 

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At March 31, 2013 the Company has an unrecognized tax position of approximately $0.8 million, including accrued interest and penalties of $0.2 million. During the nine months ended March 31, 2013, the Company recorded a gross unrecognized tax position of $0.6 million, of which $0.1million was resolved during the quarter ended March 31, 2013. The Company believes that an additional $0.5 million of its unrecognized tax positions will be resolved over the next twelve months.