2.2.0.7 false Income Taxes 0211 - Disclosure - Income Taxes true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Income Taxes [Abstract] 0 us-gaap_IncomeTaxExpenseBenefitAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Income Taxes 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><font style="font-variant: small-caps"><b>Note 11: Income Taxes</b></font> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As part of the process of preparing the condensed consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax exposure and assessing changes in temporary differences resulting from differing treatment of items, such as depreciation, amortization and inventory reserves, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the condensed consolidated balance sheets. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Accounting standards relating to income taxes require that we continually evaluate the necessity of establishing or changing a valuation allowance for deferred tax assets, depending on whether it is more likely than not that actual benefit of those assets will be realized in future periods. We have evaluated our deferred tax assets and concluded that it is more likely than not that the deferred tax assets will be benefited in the future; therefore, valuation allowance is not required. In addition, we adopted the provisions of the FASB’s accounting guidance related to the accounting for uncertainty in income taxes. This accounting standard requires financial statement reporting of the expected future tax consequences of uncertain tax return reporting positions on the presumption that all relevant tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but it prohibits any discounting of any of the related tax effects for the time value of money. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Our total amount of unrecognized tax benefits as of September 30, 2010 was $8.1 million, of which $1.9 million, if recognized, would affect our effective tax rate, compared to $8.0 million on June 30, 2010, of which $1.9 million, if recognized, would have affected our effective tax rate. The liability for income taxes associated with uncertain tax positions is classified in deferred and other income taxes payable. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">We record interest and penalties related to unrecognized tax benefits in income tax expense. At September 30, 2010, we had approximately $1.9 million accrued for estimated interest related to uncertain tax positions compared to approximately $1.7 million on June 30, 2010. During the three months ended September 30, 2010, we accrued a total of $175,000 in interest on these uncertain tax positions. At September 30, 2010, we had approximately $69,000 accrued for estimated penalties related to uncertain tax positions compared to approximately $69,000 on June 30, 2010. During the fiscal year ended June 30, 2010, we accrued no additional penalties on these uncertain tax positions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Included in our balance of income tax liabilities, accrued interest, and accrued penalties at September 30, 2010 of $10.2 million, is $3.9 million related to tax positions for which it is reasonably possible that the statute of limitations will expire in various jurisdictions within the next twelve months. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">We are subject to audit by the Internal Revenue Service and California Franchise Tax Board for the fiscal years 2006 through the fiscal year 2009. As we have operations in most other US states, other state tax authorities may assess deficiencies related to prior year activities; however, the years open to assessment vary with each state. We also file income tax returns for non-US jurisdictions; the most significant of which are Germany, Japan, the UK and Hong Kong. The years open to adjustment for Germany are for the fiscal years 2004 through 2009, fiscal years 2004 through 2009 for the UK and Hong Kong and fiscal years 2003 through 2009 for Japan. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the settlement of ongoing litigation, the completion of ongoing examinations, the expiration of the statute of limitations, or other circumstances. At this time, an estimate of the range of the reasonably possible change cannot be made. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. 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