INCOME TAX EXPENSE

3 Months Ended

Dec. 31, 2016

Income Tax Expense [Abstract]

INCOME TAX EXPENSE

9. INCOME TAX EXPENSE

The first quarter 2017 effective income tax rate was 33.5% compared to 31.9% in the first quarter of 2016. The increase in the effective income tax rate in the first quarter of 2017 was mainly due to the income tax expense in the first quarter of 2016 being favorably impacted by the extension of the research credit as a result of The Protecting Americans from Tax Hikes Act reducing the 2016 first quarter effective tax rate by 6.6%. In addition, income tax expense in the first quarter of 2016 was unfavorably impacted by losses in foreign jurisdictions for which no tax benefit was recorded increasing the 2016 first quarter effective tax rate by 5.7%.

The Company estimates the fiscal 2017 effective tax rate will be approximately 34%. During the three-month period ended December 31, 2016, there was no material change in the unrecognized tax benefits. The Company does not anticipate a material change in the amount of unrecognized tax benefits in the next twelve months.