INCOME TAXES	9 Months Ended
Mar. 31, 2013
INCOME TAXES
INCOME TAXES	8. INCOME TAXES The provision for income taxes for interim periods is based on the current estimate of the annual effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and is adjusted as necessary for quarterly events. The effective income tax rate was 31.3% and 37.2% for the three months ended March 31, 2013 and 2012, respectively, and 35.1% and 37.2% for the nine months ended March 31, 2013 and 2012, respectively. The decrease in the effective income tax rate for the three and nine months ended March 31, 2013 compared to 2012 is primarily attributable to a favorable increase in the federal manufacturing deduction and the reinstatement of the federal research and development tax credit which was retroactive to January 1, 2012. The IRS commenced examination of the Company’s United States federal income tax returns for 2006 through 2009 during fiscal year 2011. The IRS completed its field examination of the open tax years and issued a Revenue Agent’s Report in January 2012. The Company filed a formal protest regarding certain unagreed adjustments in March 2012. The case has been assigned to the IRS Appeals Office in Laguna Niguel, California. If successful in defending the Company’s position, it would result in a reduction to unrecognized tax benefits and a corresponding reduction of income tax provisions of approximately $3.7 million. If the IRS were to prevail in full, it would result in additional income tax provisions of approximately $7.1 million for the tax years 2006 through 2009. It is reasonably possible that within the next twelve months the Company will resolve the matter presently under consideration with the IRS, which may increase or decrease unrecognized tax benefits for the open tax years. However, an estimate of such increase or decrease cannot reasonably be made. As of March 31, 2013, the Company has $16.1 million related to uncertain tax positions, excluding related accrued interest and penalties, $16.0 million of which, if recognized, would impact the effective tax rate. As of March 31, 2013, the Company has $2.0 million accrued for the payment of interest and penalties. Excluding the IRS Appeals case described above, it is reasonably possible that the Company’s amount of unrecognized tax benefits may decrease within the next twelve months by a range up to $1.2 million. The Company files numerous consolidated and separate income tax returns in the United States and various state and foreign jurisdictions. The Company is currently under examination in certain states and foreign jurisdictions. With few exceptions, the Company is no longer subject to United States federal, state and local, or foreign income tax examinations for years before fiscal 2006.

INCOME TAXES

9 Months Ended

Mar. 31, 2013

8. INCOME TAXES

The provision for income taxes for interim periods is based on the current estimate of the annual effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and is adjusted as necessary for quarterly events. The effective income tax rate was 31.3% and 37.2% for the three months ended March 31, 2013 and 2012, respectively, and 35.1% and 37.2% for the nine months ended March 31, 2013 and 2012, respectively. The decrease in the effective income tax rate for the three and nine months ended March 31, 2013 compared to 2012 is primarily attributable to a favorable increase in the federal manufacturing deduction and the reinstatement of the federal research and development tax credit which was retroactive to January 1, 2012.

The IRS commenced examination of the Company’s United States federal income tax returns for 2006 through 2009 during fiscal year 2011. The IRS completed its field examination of the open tax years and issued a Revenue Agent’s Report in January 2012. The Company filed a formal protest regarding certain unagreed adjustments in March 2012. The case has been assigned to the IRS Appeals Office in Laguna Niguel, California. If successful in defending the Company’s position, it would result in a reduction to unrecognized tax benefits and a corresponding reduction of income tax provisions of approximately $3.7 million. If the IRS were to prevail in full, it would result in additional income tax provisions of approximately $7.1 million for the tax years 2006 through 2009.

It is reasonably possible that within the next twelve months the Company will resolve the matter presently under consideration with the IRS, which may increase or decrease unrecognized tax benefits for the open tax years. However, an estimate of such increase or decrease cannot reasonably be made.

As of March 31, 2013, the Company has $16.1 million related to uncertain tax positions, excluding related accrued interest and penalties, $16.0 million of which, if recognized, would impact the effective tax rate. As of March 31, 2013, the Company has $2.0 million accrued for the payment of interest and penalties.

Excluding the IRS Appeals case described above, it is reasonably possible that the Company’s amount of unrecognized tax benefits may decrease within the next twelve months by a range up to $1.2 million.

The Company files numerous consolidated and separate income tax returns in the United States and various state and foreign jurisdictions. The Company is currently under examination in certain states and foreign jurisdictions. With few exceptions, the Company is no longer subject to United States federal, state and local, or foreign income tax examinations for years before fiscal 2006.