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Income Taxes
9 Months Ended
Mar. 31, 2015
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 for the three months ended March 31, 2015 and 2014 was $19.3 million and $22.4 million, respectively. The effective tax rate for the three months ended March 31, 2015 and 2014 was 21.6 percent and 23.3 percent, respectively. The decrease in the effective tax rate for the three months ended March 31, 2015 compared to the same period in the prior year was primarily due to foreign exchange losses and the mix of income in certain key foreign jurisdictions, partially offset by discrete charges recognized in the three months ended March 31, 2015.

Income tax expense for the nine months ended March 31, 2015 and 2014 was $76.3 million and $64.5 million, respectively. The effective tax rate for the nine months ended March 31, 2015 and 2014 was 22.1 percent and 25.2 percent, respectively. The decrease in the effective tax rate for the nine months ended March 31, 2015 compared to the same period in the prior year was primarily due to the retroactive reinstatement of the U.S. research and experimentation credit, foreign exchange losses and the mix of income in certain key foreign jurisdictions, partially offset by discrete charges recognized in the nine months ended March 31, 2015.

As of March 31, 2015 unrecognized tax benefits and the related interest were $45.1 million and $2.5 million, respectively, all of which would affect the tax rate if recognized. During the three months ended March 31, 2015, the change in tax reserves on uncertain tax positions was an increase of $2.1 million and the related interest was an increase of $0.2 million. During the nine months ended March 31, 2015, the change in tax reserves on uncertain tax positions was an increase of $0.9 million and the related interest was an increase of $0.1 million.

We are under examination in various taxing jurisdictions and have received some proposed changes by the German revenue authorities and Internal Revenue Service. Although the final resolution of the proposed adjustments is uncertain, we believe that the ultimate disposition of these matters will not have a material adverse effect on our consolidated financial position, results of operations and cash flows. While we expect the amount of unrecognized tax benefits to change, we are unable to quantify the change at this time.