TAXES

9 Months Ended

Dec. 31, 2011

Taxes [Abstract]

TAXES

Note 8 — TAXES

Our income tax expense increased from a benefit of $11.8 million and a provision of $0.1 million for the three and nine months ended December 31,2010, respectively, to provisions of $7.1 million and $11.8 million for the three and nine months ended December 31,2011, respectively.Our effective tax rate for the nine months ended December 31, 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 nine months endedDecember 31,2011reflect the tax implications of a restructuring that was effective November 1, 2010. As a result of this restructuring, most U.S. tax on offshore profits will be deferred until the profits are repatriated. For the three and nine months ended December 31, 2010, we recorded a net reduction of our provision for income taxes of $16.6 million and $17.4 million, respectively, primarily due to the reversal of deferred tax balances recorded in prior years. Excluding this reduction, our effective tax rates were 15.6% and 17.0% for the three and nine months ended December 31, 2010, respectively.

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 December 31,2011 and 2010, we accrued tax contingency related items totaling $0.9million and $1.0million, respectively. During the nine months endedDecember 31,2011 and 2010, we accrued tax contingency related items totaling $2.5million and $2.7million, respectively.

As of December 31,2011, there were $14.2million of unrecognized tax benefits, all of which would have an impact on our effective tax rate, if recognized. For the three months ended December 31,2011 and 2010, we accrued interest and penalties of $0.2millionand $0.1million, respectively, and for both the nine months endedDecember 31,2011 and 2010, we accrued interest and penalties of $0.4millionin connection with uncertain tax positions.