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Income Taxes
6 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Income Taxes
Note 9: Income Taxes

For the three months ended September 30, 2013 and 2012, the Company’s effective income tax rate was 32.4 percent and (19.0) percent, respectively.  For the six months ended September 30, 2013 and 2012, the Company’s effective income tax rate was 31.9 percent and (43.3) percent, respectively.

The most significant factors impacting changes in the effective tax rate for the three and six months ended September 30, 2013 as compared to the prior year periods were increases in the valuation allowance for certain foreign jurisdictions, for which no benefit is recognized, and the changing mix of foreign and domestic earnings.  During the three and six months ended September 30, 2013, the Company continued to record a full valuation allowance against its net deferred tax assets in the U.S. and certain foreign jurisdictions as it is more likely than not that these assets will not be realized based on historical performance.  The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until the need for a valuation allowance is eliminated.  The need for a valuation allowance is eliminated when the Company determines it is more likely than not that the deferred tax assets will be realized.  It is possible that in late fiscal 2014 or in fiscal 2015, the U.S. taxing jurisdiction will no longer be in a cumulative three-year loss position, thereby removing significant negative evidence concerning the valuation allowance.

Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate.  Under this methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter.  The tax impacts of certain significant, unusual or infrequently occurring items are recorded in the period in which they occur. For the six months ended September 30, 2013, the U.S. taxing jurisdiction had year-to-date pre-tax earnings and is also forecasting pre-tax earnings for the full fiscal year.  As such, the U.S. taxing jurisdiction is included in the overall annual effective tax rate methodology.  The impact of the Company’s operations in certain foreign locations are excluded from the overall effective tax rate methodology and recorded discretely based upon year-to-date results as these operations anticipate net operating losses for the full fiscal year.

The Company files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world.  At September 30, 2013, the Company was engaged in an income tax examination by the German taxing authority covering fiscal years 2006 through 2010.  The Austrian taxing authority completed its examination of fiscal years 2009 through 2011 during the second quarter of fiscal 2014.  The Company has not been notified of any other tax examinations covering open periods.  During the next twelve months, the Company believes it is reasonably possible that the amount of unrecognized tax benefits could be reduced by up to $6.9 million as a result of the resolution of worldwide tax matters and the lapses of statutes of limitations.