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Income Taxes
9 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The provision for (benefit of) income taxes for the three months ended December 31, 2014 and 2013 was approximately $1.5 million and $(6.6) million, respectively. The effective tax rates were 17.9% and 34.4% for the three months ended December 31, 2014 and 2013, respectively. The effective rate for the three months ended December 31, 2014 decreased as compared to the same prior year period primarily due to favorable discrete items included in the current period related to the enactment of the federal research and development tax credit statute, which had expired on December 31, 2013 and on December 19, 2014 was retroactively extended through December 31, 2014. The non-deductible portion of the Hospital impairment charge in the prior year also resulted in an incremental decrease in the effective tax rate for the three months ended December 31, 2014.
The provision for income taxes for the nine months ended December 31, 2014 and 2013 was approximately $6.7 million and $5.2 million, respectively. The effective tax rates were 28.6% and 33.4% for the nine months ended December 31, 2014 and 2013, respectively. The effective rate for the nine months ended December 31, 2014 decreased as compared to the same prior year period primarily due to an increase in benefit from the federal research and development tax credit partially offset by a decrease in benefit from the qualified production activities deduction. The non-deductible portion of the Hospital impairment charge in the prior year also resulted in an incremental decrease in the effective tax rate for the nine months ended December 31, 2014.
The deferred tax assets and liabilities have been shown net in the accompanying consolidated balance sheets based on the long-term or short-term nature of the items that give rise to the deferred amount. The Company expects to receive the full benefit of the deferred tax assets recorded with the exception of a specific state tax credit for which the Company has recorded a valuation allowance.
Uncertain tax positions As of December 31, 2014, the Company had recorded a liability of $777 for unrecognized tax benefits related to various federal, state and local income tax matters. If recognized, this amount would reduce the Company’s effective tax rate. The tax liability for the nine months ended December 31, 2014 decreased from the same prior year period by $423 due to changes in reserves for state and local income tax liabilities, expiring statute of limitations, and certain tax positions related to acquired companies.
The Company is no longer subject to U.S. federal income tax examinations for tax years before 2013. With few exceptions, the Company is no longer subject to state income tax examinations for tax years before 2010. 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.