Note 10 - Income Taxes

9 Months Ended

Jun. 30, 2011

Income Tax Disclosure [Text Block]

10. Income Taxes

We follow the applicable accounting provisions which clarify the accounting for uncertainty in income tax positions. These provisions require us to recognize in the consolidated financial statements only those tax positions determined to be more-likely-than-not of being sustained upon examination, based on the technical merits of the positions as of the reporting date. If a tax position is not considered more-likely-than-not to be sustained based solely on its technical merits, no benefits of the position are recognized. The more-likely-than-not threshold must continue to be met in each reporting period to support continued recognition of a benefit. 

As of June 30, 2011, the total amount of uncertain tax liabilities was $271 thousand, all of which would affect our effective tax rate if recognized. We recognize interest and potential penalties accrued related to unrecognized tax benefits in our provision for income taxes.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

	Three months ended June 30, 2011		Three months ended June 30, 2010
	(Amounts in thousands)
Beginning balance	$	—	$	326
Increases in tax positions in the current year		271		—
Settlements		—		—
Lapse in statute of limitations		—		(302	)
Accrued penalties and interest		—		8
Balance, end of period	$	271	$	32

	Nine months ended June 30, 2011		Nine months ended June 30, 2010
	(Amounts in thousands)
Balance, beginning of year	$	—	$	326
Increases in tax positions in the current year		271		—
Settlements		—		—
Lapse in statute of limitations		—		(302	)
Accrued penalties and interest		—		8
Balance, end of period	$	271	$	32

We file income tax returns in the U.S. federal jurisdictions and various state and foreign jurisdictions.  The Internal Revenue Service has completed an examination of fiscal year 2007, which did not result in any tax adjustment relating to our uncertain tax positions.  The Company has reviewed the tax positions taken on returns filed domestically and in its foreign jurisdictions for all open years, generally fiscal 2006 through 2010, and believes that tax adjustments in any audited year will not be material, except for the uncertain tax position described above.