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Income Taxes
3 Months Ended
Jul. 02, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company recorded a tax provision of $18.6 million for the first quarter of fiscal 2017 as compared to $20.3 million in the same prior year period, representing effective tax rates of 10% and 12%, respectively.

The difference between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rate in all periods is primarily due to income earned in lower tax rate jurisdictions, for which no U.S. income tax has been provided, as the Company intends to permanently reinvest these earnings outside of the U.S.

The Company’s total gross unrecognized tax benefits as of July 2, 2016, determined in accordance with FASB authoritative guidance for measuring uncertain tax positions, increased by $861 thousand in the first quarter of fiscal 2017 to $34.9 million. The total amount of unrecognized tax benefits that, if realized in a future period, would favorably affect the effective tax rate was $16.2 million as of July 2, 2016. It is reasonably possible that changes to our unrecognized tax benefits could be significant in the next twelve months due to tax audit settlements and lapses of statutes of limitation. As a result of uncertainties regarding tax audit settlements and their possible outcomes, an estimate of the range of increase or decrease that could occur in the next twelve months cannot be made.

The Company’s policy is to include interest and penalties related to income tax liabilities within the provision for income taxes on the condensed consolidated statements of income. The balance of accrued interest and penalties recorded in the condensed consolidated balance sheets and the amounts of interest and penalties included in the Company's provision for income taxes were not material for all periods presented.

The Company is no longer subject to U.S. federal or Ireland audits by taxing authorities for years through fiscal 2011. The Company is no longer subject to U.S. state audits for years through fiscal 2010.

The Company has been subject to examination by the IRS for fiscal years 2012 through 2014. During the fourth quarter of fiscal 2016, the IRS completed its fieldwork and issued a Revenue Agent Report. The case has been moved forward to the Joint Committee on Taxation for review. As a result, the audit remains officially open until such review is completed. The Company believes its provision for unrecognized tax benefits is adequate for adjustments that may result from the tax audit.

As a result of the early adoption of new guidance on accounting for share-based payments, the Company recorded excess tax benefits of $6.8 million for the first quarter of fiscal 2017 in the condensed consolidated statement of income as a component of the provision for income taxes. Please refer to "Note 2. Recent Accounting Changes and Accounting Pronouncements" for more details regarding the adoption of the new guidance.