Income Taxes
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9 Months Ended |
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Dec. 31, 2014
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income (loss) before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland. The income tax benefit for the three months ended December 31, 2014 was $0.9 million based on an effective income tax rate of (1.4)% of pre-tax income, compared to an income tax provision of $4.8 million based on an effective income tax rate of 9.1% of pre-tax income for the three months ended December 31, 2013. The income tax provision for the nine months ended December 31, 2014 was $7.7 million based on an effective income tax rate of 6.1% of pre-tax income, compared to an income tax provision of $7.1 million based on an effective income tax rate of 10.0% of pre-tax income for the nine months ended December 31, 2013. The change in the effective income tax rate for the three and nine months ended December 31, 2014, compared to the three and nine months ended December 31, 2013, was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates. There was a discrete tax benefit of $9.0 million and $11.1 million in the three and nine months ended December 31, 2014, respectively, from the reversal of uncertain tax positions resulting from expiration of the statutes of limitations. In the three and nine months ended December 31, 2013, the discrete tax benefit from the reversal of uncertain tax positions resulting from expiration of the statutes of limitations was $10.0 million and $12.0 million, respectively. On December 19, 2014, the enactment in the U.S. of the Tax Increase Prevention Act of 2014 extended the U.S. federal research and development tax credit through December 31, 2014 which had previously expired on December 31, 2013. The income tax benefit and income tax provision in the three and nine months ended December 31, 2014 reflected a $0.8 million tax benefit, respectively, as a result of the extension of the tax credit. As of December 31 and March 31, 2014, the total amount of unrecognized tax benefits due to uncertain tax positions was $85.1 million and $91.0 million, respectively, of which $83.9 million and $86.1 million would affect the effective income tax rate if recognized. As of December 31, 2014, the Company had $79.4 million in non-current income taxes payable and $0.1 million in current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions. As of March 31, 2014, the Company had $93.1 million in non-current income taxes payable and $0.3 million in current income taxes payable. Pursuant to ASU 2013-11, which became effective in the first quarter of fiscal year 2015, the Company reclassified $9.8 million of unrecognized tax benefits previously presented as non-current income taxes payable as a reduction to non-current deferred tax assets for tax credit carryforwards. The Company continues to recognize interest and penalties related to unrecognized tax positions in income tax expense. As of December 31 and March 31, 2014, the Company had $5.2 million and $5.6 million of accrued interest and penalties related to uncertain tax positions, respectively. Although the Company has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2015, the Company will continue to review its tax positions and provide for or reverse unrecognized tax benefits as issues arise. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S. dollar as compared to foreign currencies. Excluding these factors, uncertain tax positions may decrease by as much as $16.0 million from the lapse of the statutes of limitations in various jurisdictions during the next 12 months. |