XML 36 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Income Taxes
6 Months Ended
Mar. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its continuing operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first six months of fiscal 2015 was 29%, compared with 33% for the same period of fiscal 2014. This decrease is primarily attributed to an increase in U.S. federal tax credits applied against forecasted income in fiscal 2015 as well as discrete tax expense of $63 related to prior periods, applied against a year-to-date domestic loss. The effective tax rate differs from the U.S. federal statutory rate due primarily to the application of U.S. tax credits as well as income in Ireland that is taxed at a rate that is less than the U.S. statutory federal income tax rate.

The Internal Revenue Service finalized regulations, as of August 2014, governing the income tax treatment of acquisitions, dispositions, and repairs of tangible property. Taxpayers are required to follow the new regulations in taxable years beginning on or after January 1, 2014.  Management is currently assessing the impact of the regulations and does not expect they will have a material impact on the Company’s consolidated financial statements.
The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland and various states and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns.