Income Taxes

6 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

INCOME TAXES

8. INCOME TAXES

The total amount of unrecognized tax benefits as of July 1, 2012, was $43.3 million, including interest and penalties. The Company does not foresee significant changes to its estimated amount of liability associated with its uncertain tax positions within the next twelve months.

The Company’s income tax expense consists of state taxes and foreign taxes. The federal statutory income tax rate was 35% for the three and six months ended September 30, 2012 and 2011. The Company’s income tax benefit for the three and six months ended September 30, 2012 for the three and six month periods ended September 30, 2011 was $0.4 million and $0.2 million, respectively, as compared to income tax expense of $0.6 million and $0.4 million, respectively. The decrease in the income tax expense recorded for the six months ended September 30, 2012 compared to September 30, 2011, was primarily related to other comprehensive income. In applying the exception to the general principle of intra-period tax allocations under ASC 740-10, the Company considered income recognized in other comprehensive income. Accordingly, the allocation of the current year tax provision included recognizing $0.6 million tax benefit arising from the loss from continuing operations and the offsetting tax expense was allocated to other comprehensive income.