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Income Taxes
3 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

The Company recorded income tax provisions of $1.3 million and $1.5 million for the three months ended December 31, 2015 and 2014, respectively, representing effective tax rates of 34.0% and 28.9%, respectively. The difference between the U.S. federal statutory tax rate of 35.0% and the Company’s effective tax rate for the three months ended December 31, 2015 and 2014 reflects the impact of state income taxes, permanent tax items and discrete tax benefits. The primary permanent items and discrete tax benefits are described below.

The three months ended December 31, 2015 includes a $0.2 million discrete tax benefit associated with the December 2015 signing of the Protecting Americans from Tax Hikes Act of 2015, which retroactively reinstated the federal research and development income tax credit which expired in December 2014.  In addition, the three months ended December 31, 2015 includes permanent tax differences of $0.3 million associated with the Creagh Medical acquisition non-deductible transaction costs as well as contingent consideration accretion and foreign currency translation expenses.

The three months ended December 31, 2014 reflect a $0.2 million discrete tax benefit associated with the December 2014 signing of the Tax Increase Prevention Act of 2014 which retroactively reinstated the federal research and development income tax credit which had expired in December 2013.

The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate as of December 31, 2015 and September 30, 2015, respectively, are $1.0 million and $0.9 million. 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 provision.

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. U.S. income tax returns for years prior to fiscal 2012 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2005.