Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 8. Income Taxes

The Company’s effective tax rate for both the three-month and nine-month periods ended September 30, 2012 was 40.0%. Gross unrecognized tax benefits were $1.1 million at September 30, 2012. The offsetting tax benefit at September 30, 2012 was $0.4 million. If recognized, $0.5 million of the net unrecognized tax benefits at September 30, 2012, would impact the effective tax rate. The Company does not anticipate a significant increase or decrease in total unrecognized tax benefits during the next 12 months.

The Company files income tax returns with the U.S. federal government and various state and foreign jurisdictions. The 2009 through 2011 tax years remain subject to examination by the U.S. Internal Revenue Service, and the 2008 through 2011 tax years generally remain subject to examination by U.S. state authorities. Tax years remaining open for foreign jurisdictions range from 2005 to 2011.

The Company reports penalties and interest related to unrecognized tax benefits in net income before tax. The Company has made no provision for deferred U.S. income taxes or additional foreign taxes on future unremitted earnings of its controlled foreign subsidiaries because the Company considers these earnings to be permanently invested.