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Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

Note 7. Income Taxes

The effective tax rate for both the three-month and six-month periods ended June 30, 2011, was 40.0%. The gross unrecognized tax benefits were $0.9 million at June 30, 2011. The offsetting tax benefit at June 30, 2011, was $0.3 million. If recognized, $0.6 million of the net unrecognized tax benefits at June 30, 2011, would impact the effective tax rate.

The Company files income tax returns in the U.S. and various state and foreign jurisdictions. The 2007 through 2010 tax years remain subject to examination by the Internal Revenue Service, and the 2006 through 2010 tax years generally remain subject to examination by state authorities. The Company does not anticipate a significant increase or decrease in total unrecognized tax benefits during the next 12 months.

 

The Company reports penalties and interest related to unrecognized tax benefits in net income before tax. For the six months ended June 30, 2011, the Company recognized less than $0.1 million of penalties and interest.

The Company has made no provision for deferred U.S. income taxes or additional foreign taxes on future unremitted earnings of our controlled foreign subsidiaries because the Company considers these earnings to be permanently invested.