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Income Taxes
9 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

The Company recorded income tax provisions associated with income from continuing operations of $1.1 million and $1.8 million for the three months ended June 30, 2013 and 2012, respectively, representing effective tax rates of 26.1% and 35.6%, respectively. The Company recorded income tax provisions associated with income from continuing operations of $3.9 million and $4.2 million for the nine months ended June 30, 2013 and 2012, respectively, representing effective tax rates of 26.5% and 36.7%, respectively. The difference between the U.S. federal statutory tax rate of 35.0% and the Company’s effective tax rate for the three and nine months ended June 30, 2013 and 2012 reflects the impact of state income taxes, permanent tax items and discrete tax benefits of $0.2 million and $0.8 million for the three and nine months ended June 30, 2013, respectively. Discrete tax items primarily relate to capital loss carrybacks, the January 2013 signing of the American Taxpayer Relief Act of 2012 which retroactively reinstated the U.S. R&D tax credit to the beginning of calendar 2012 and the finalization of fiscal 2012 income tax liabilities upon the filing of fiscal 2012 federal and state income tax returns. The nine months ended June 30, 2013 also reflects the impact of strategic asset gains, an other-than-temporary impairment of a strategic asset, available-for-sale investment portfolio capital gains and net reversal of deferred tax asset valuation allowances.

The Company recorded an income tax expense from discontinued operations of $0.2 million and $0.5 million for the three and nine months ended June 30, 2013, respectively. The Company recorded an income tax expense from discontinued operations of less than $0.1 million and $1.1 million for the three and nine months ended June 30, 2012, respectively. The Company recorded an income tax expense of less than $0.1 million and an income tax benefit of $0.7 million from the sale of discontinued operations for the three and nine months ended June 30, 2012, respectively. The effective tax rate applied to discontinued operations was 134.6% and 44.8% for the three and nine months ended June 30, 2013, respectively. The effective tax rate applied to discontinued operations was 96.5% and 65.0% for the three and nine months ended June 30, 2012, respectively.

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate as of June 30, 2013 and September 30, 2012, respectively, are $1.4 million for each period. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense.

The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service (“IRS”) commenced an examination of the Company’s U.S. income tax return for fiscal 2010 in the first quarter of fiscal 2012. The IRS completed its examination in the third quarter of fiscal 2012 and a payment was made in the fourth quarter of fiscal 2012 associated with a timing adjustment. U.S. income tax returns for years prior to fiscal 2010 are no longer subject to examination by federal tax authorities. Tax returns for state and local jurisdictions for fiscal years 2004 through 2012 remain subject to examination by state and local tax authorities.