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TAXES
6 Months Ended
Sep. 30, 2011
Taxes [Abstract] 
TAXES

Note 8 — TAXES

Our income tax decreased from a provision of $3.3 million and $11.9 million for the three and six months ended September 30, 2010, respectively, to a benefit of $1.9 million and a provision of $4.7 million for the three and six months ended September 30, 2011, respectively. The three and six months ended September 30, 2011 includes a benefit due to the revaluation of our deferred taxes as a result of the enactment of a tax rate reduction of 2% in the United Kingdom effective April 1, 2012. The valuation benefit, net of other discrete items, eliminated any need to provide additional tax expense for the three months ended September 30, 2011. In addition, we continue to benefit from our global legal structure that more closely aligns with our global operational structure. As a result of this restructuring, most U.S. tax on offshore profits will be deferred until the profits are repatriated.

Our effective tax rate was also impacted by the permanent reinvestment outside the U.S. of foreign earnings, upon which no U.S. tax has been provided, and by the amount of our foreign source income and our ability to realize foreign tax credits.

During the three months ended September 30, 2011 and 2010, we accrued tax contingency related items totaling $0.7 million and $1.3 million, respectively. During the six months ended September 30, 2011 and 2010, we accrued tax contingency related items totaling $1.3 million and $1.6 million, respectively.

As of September 30, 2011, there were $13.3 million of unrecognized tax benefits, all of which would have an impact on our effective tax rate, if recognized. For the three months ended September 30, 2011 and 2010, we accrued interest and penalties of $0.2 million and $0.2 million, respectively, and for the six months ended September 30, 2011 and 2010, we accrued interest and penalties of $0.3 million and $0.3 million, respectively, in connection with uncertain tax positions.