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Income Taxes
3 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company recorded provisions for income taxes of $643,000 and $4,845,000 for the three months ended September 30, 2012 and 2011, respectively. The effective tax rate was 41.7% and 36.3% for the three months ended September 30, 2012 and 2011, respectively, and are estimated to be lower than the federal statutory rate primarily due to the impact of stock option expenses and the expiration of federal research and development tax credits on December 31, 2011.

As of September 30, 2012, the Company had a liability for gross unrecognized tax benefits of $9,225,000, substantially all of which, if recognized, would affect the Company's effective tax rate. During the three months ended September 30, 2012, there was no material change in the total amount of the liability for gross unrecognized tax benefits.

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for taxes on the condensed consolidated statements of operations. As of September 30, 2012, the Company had accrued $1,144,000 for the payment of interest and penalties relating to unrecognized tax benefits. During the three months ended September 30, 2012, there was no material change in the total amount of the liability for accrued interest and penalties related to the unrecognized tax benefits.

The Company is subject to U.S. federal income tax as well as income taxes in many state and foreign jurisdictions. In September 2011, the Internal Revenue Service met with the Company to commence a pre-examination of the federal income tax returns for tax years 2007 through 2009. The Company continues to work towards a resolution which may be reached during the next twelve months. While management believes that the Company has adequately provided for all tax positions, amounts asserted by tax authorities could be greater or less than the Company’s current position. Accordingly, the Company’s provision on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. The statutes of limitation in state jurisdictions remain open in general for tax years 2007 through 2013. The major foreign jurisdictions remain open for examination in general for tax years 2003 through 2013.