XML 61 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax
9 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Income Tax
Income Tax

The provision for income taxes for the three months ended December 31, 2012 and 2011 was approximately $7.6 million and $11.2 million, respectively. The effective tax rates were 32.9% and 34.8% for the three months ended December 31, 2012 and 2011, respectively. The effective tax rate decreased as compared to the prior year period as a result of increased benefit of discrete items, principally as the result of the lower level of taxable income in the current period. In addition, the effective tax rate reflects a reduction in the Company's composite state effective tax rate for the three months ended December 31, 2012, largely offset by the absence of a research and development tax credit in such period, due to the expiration of the applicable federal statute on December 31, 2011.

The provision for income taxes for the nine months ended December 31, 2012 and 2011 was approximately $24.3 million and $32.1 million, respectively. The effective tax rates were 34.2% and 34.7% for the nine months ended December 31, 2012 and 2011, respectively. The effective tax rate decreased slightly due to a reduction in the Company's composite state effective tax rate, largely offset by the absence of a research and development tax benefit in the current year, as described above.

Uncertain tax positions
As of December 31, 2012, the Company had recorded a liability of $563 for unrecognized tax benefits related to various federal and state income tax matters. If recognized, this amount would reduce the Company’s effective tax rate. The tax liability decreased from the prior year period by $174 due to changes in contingent liability reserves and certain tax positions related to acquired companies.

The Company's income tax returns filed for tax years 2010 through 2012 and 2008 through 2012 are subject to examination by the federal and state taxing authorities, respectively. The Company is not currently under examination by the Internal Revenue Service. The Company is under routine examination by six state income tax authorities. The Company does not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months.