Income Taxes

6 Months Ended

Mar. 31, 2013

Income Taxes

Income Taxes

Note 4.   Income Taxes

Income tax expense for the three and six months ended March 31, 2012 and 2013 differed from the U.S. federal statutory rate of 35% primarily due to state income taxes and differing tax rates on foreign earnings. The effective tax rate for the three months ended March 31, 2013 was 34.5% compared to 34.2% in the same period of fiscal 2012. The effective tax rate for the six months ended March 31, 2013 was 31.6% compared to 34.4% in the same period of fiscal 2012. The decrease in the six month effective tax rate is attributable to a change in law in the state of California related to apportionment.  This change resulted in an increase to the deferred tax asset which caused a favorable impact on the effective tax rate.