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INCOME TAXES
3 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company and its subsidiaries are subject to taxation in the U.S. and in various foreign and state jurisdictions. The effective tax rates for the three months ended June 30, 2016 and 2017 were 22.5% and (10.4)%, respectively.

The decrease in the effective tax rates for the three months ended June 30, 2017 as compared to the prior year period are due primarily to the adoption of new stock-based compensation guidance and a correction to our Fiscal Year 2017 geographic mix of income. See Note 1, Basis of Presentation, for further details regarding the correction.

The Company adopted the new stock-based compensation guidance during the three months ended June 30, 2017, which resulted in excess tax benefits associated with employee equity plans of $1.9 million being recognized in the income tax provision during that quarter. See Note 9, Stock-Based Compensation. Excess tax benefits associated with employee equity plans were previously recorded in additional paid-in capital and the adoption of this guidance resulted in a reduction to the Company's effective tax rate by 11.4 percentage points for the three months ended June 30, 2017. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP.

The geographic mix of income during the three months ended June 30, 2017 included a correction related to Fiscal Year 2017 to reduce income in a high tax jurisdiction and increase income in a low tax jurisdiction. This adjustment related to the prior year resulted in a reduction to the Company’s effective tax rate by 16.2 percentage points for the three months ended June 30, 2017. Refer to Note 1, Basis of Presentation, for further details regarding this adjustment.

Included in long-term income taxes payable in the condensed consolidated balance sheets as of March 31, 2017 and June 30, 2017 were unrecognized tax benefits of $12.9 million and $12.8 million, respectively, which would favorably impact the effective tax rate in future periods if recognized. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense in the condensed consolidated statements of operations.  The accrued interest related to unrecognized tax benefits was $1.7 million and $1.4 million as of March 31, 2017 and June 30, 2017, respectively.  No penalties have been accrued.

The Company and its subsidiaries are subject to taxation in the U.S. federal and various foreign and state jurisdictions. All federal tax matters have been concluded for tax years prior to Fiscal Year 2014. During the three months ended June 30, 2017, the Company effectively settled its protest to the California Franchise Tax Board for its 2007 and 2008 tax years. The result of our effective settlement was an immaterial refund. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2012.

The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. The timing of any resolution and/or closure of tax examinations is not certain.