XML 80 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
9 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 – Income Taxes

Our provision for income taxes is based on an estimated annual tax rate for the year applied to federal, state and foreign income. Income tax expense (benefit) for the three months ended March 31, 2013 and 2012 was a $2.2 million expense and a $119.1 million benefit, respectively. The effective tax rate for the three months ended March 31, 2013 and 2012 was 5.9 percent and (222.5) percent, respectively. The change in the effective tax rate for the three months ended March 31, 2013 compared to same period in the prior year was primarily due to the release in the valuation allowance realized during the three months ended March 31, 2012, the retroactive reinstatement of the U.S. research and experimental tax credit that was signed into law on January 2, 2013 and the mix of income in certain key foreign jurisdictions.

Income tax expense (benefit) for the nine months ended March 31, 2013 and 2012 was a $34.2 million expense and an $81.5 million benefit, respectively. The effective tax rate for the nine months ended March 31, 2013 and 2012 was 20.0 percent and (41.0) percent, respectively. The change in the effective tax rate for the nine months ended March 31, 2013 compared to same period in the prior year was primarily due to the release in the valuation allowance realized during the nine months ended March 31, 2012, the retroactive reinstatement of the U.S. research and experimental tax credit that was signed into law on January 2, 2013 and the mix of income in certain key foreign jurisdictions.

As of March 31, 2013, unrecognized tax benefits and the related interest were $34.8 million and $1.7 million, respectively; all of which would affect the tax rate if recognized. During the three and nine months ended March 31, 2013 we recorded tax reserves on uncertain tax positions in the amount of $0.7 million and $2.3 million, respectively. During the three and nine months ended March 31, 2013 we settled an uncertain tax provision that resulted in a $1.7 million reduction in our tax reserves. This reduction had no impact on our effective tax rate. During the three and nine months ended March 31, 2013, we recorded additional interest expense on uncertain tax positions of $0.0 and $0.5 million, respectively.