Income Taxes

9 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

11. Income Taxes

The Company’s effective income tax rate for the interim periods was based on management’s estimate of the Company’s annual effective tax rate for the applicable year. For the three months ended June 30, 2012, the Company’s effective income tax rate was a benefit of 59.2% compared to an effective tax rate benefit of 27.9% for the three months ended June 30, 2011. For the nine months ended June 30, 2012, the Company’s effective income tax rate was a benefit of 64.8% compared to an effective tax rate benefit of 30.8% for the nine months ended June 30, 2011. These rates differ from the federal statutory income tax rate primarily due to nondeductible permanent differences, net operating losses not benefited, and uncertain tax positions.

NMH Holdings files a federal consolidated return and files various state income tax returns. The Company files various state income tax returns and, generally, is no longer subject to income tax examinations by the taxing authorities for years prior to September 30, 2009. The Company’s reserve for uncertain income tax positions, including interest and penalties, decreased from $6.1 million at September 30, 2011 to zero at June 30, 2012 as a result of favorable settlements of audits. The Company does not expect any significant changes to unrecognized tax benefits within the next twelve months. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as charges to income tax expense.