4.Income Taxes

The following table presents the Company’s provision for income taxes and effective income tax rate for the periods below:


	Three months ended						Six months ended
	February 28,						February 28,
	2014			2013			2014			2013
Provision for income taxes	$	2,002		$	669		$	5,887		$	4,205
Effective income tax rate		32.8	%		15.8	%		32.3	%		30.2	%

The lower effective income tax rate during the second quarter and first six months of fiscal year 2013 was primarily attributable to the expiration of a state statute of limitations related to an uncertain tax position and legislation that was passed to reinstate and extend the Work Opportunity Tax Credit (“WOTC”).

As of February 28, 2014, the Company had $2.1 million of unrecognized tax benefits, including $0.3 million of interest and penalties. During the first six months of fiscal year 2014, the liability for unrecognized tax benefits decreased $0.5 million. The decrease was primarily related to the IRS’ acceptance of a federal tax method change that impacted the Company’s tax rate. The Company recognizes estimated interest and penalties as a component of its income tax expense, net of federal benefit. If recognized, the entire amount of unrecognized tax benefits would favorably impact the effective tax rate.

The Company or one of its subsidiaries is subject to U.S. federal income tax and income tax in multiple U.S. state jurisdictions. The Company is currently undergoing examinations or appeals by various state and federal authorities. The Company anticipates that the finalization of these examinations or appeals, combined with the expiration of applicable statutes of limitations and the additional accrual of interest related to unrecognized benefits on various return positions taken in years still open for examination, could result in a change to the liability for unrecognized tax benefits during the next 12 months ranging from a decrease of $1.5 million to an increase of $1.3 million depending on the timing and terms of the examination resolutions.