|
Income Taxes
|
3 Months Ended | |||
|---|---|---|---|---|
|
Mar. 31, 2012
|
||||
| Income Taxes [Abstract] | ||||
| Income Taxes |
At March 31, 2012, the Company had an unrecognized tax benefit of $261 including accrued interest for uncertain tax positions related to previous years. If recognized, the unrecognized tax benefit would have a favorable effect on the effective tax rate in future periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Interest accrued as of March 31, 2012, is not considered material to the Company's consolidated financial statements. The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company is no longer subject to income tax examinations by tax authorities for years prior to 2004 for the majority of tax jurisdictions. The Company's federal returns are currently under examination by the Internal Revenue Service (IRS) in the United States for the periods 2004 through 2009. The reduction in the reserve during the first quarter 2012 is primarily related to an IRS proposal from Appeals regarding the Company's research and development tax credit position. The Company has accepted the proposal. There is no longer an amount reserved for the Company's research and development tax credits for the periods 2004 through 2007 and no tax benefit was recognized as a result of this settlement. To date, there have not been any other significant proposed adjustments that have not been accounted for in the Company's consolidated financial statements.
Audit outcomes and the timing of audit settlements are subject to significant uncertainty. It is reasonably possible that within the next twelve months the Company will resolve some or all of the matters presently under consideration for 2004 through 2009 with the IRS and that there could be significant increases or decreases to unrecognized tax benefits. |