Income Taxes

6 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

10. Income Taxes

The effective tax rate was 33.7% for the three months ended December 31, 2011 and 30.3% for the three months ended December 31, 2010. During the three months ended December 31, 2011, we recorded a one-time charge for additional income tax expense of $2.7 million. This charge reflects the cumulative effect of a reduction in future tax benefits from deferred tax assets in Japan resulting from the decrease in the Japanese statutory corporate tax rate. The reduction in the Japanese statutory tax rate was enacted in November 2011.

We are subject to tax in U.S. Federal, state and foreign tax jurisdictions. We have substantially completed all U.S. federal income tax matters for tax years through 2007. The tax years 2008 and after remain open to examination by all major taxing jurisdictions to which we are subject.

It is our practice to recognize interest and penalties related to income tax matters in tax expense. As of December 31, 2011, there were no material interest or penalty amounts to accrue.