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Income Taxes
3 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company recorded an income tax benefit of $3.4 million and $3.1 million, respectively, during the three months ended December 31, 2015 and 2014. During the three months ended December 31, 2015, the income tax benefit was driven by U.S. pre-tax losses incurred during the period, $0.7 million of reductions in unrecognized tax benefits resulting from the expiration of the statute of limitations in various foreign jurisdictions and $0.9 million of tax benefits resulting from the reinstatement of the U.S. research and development tax credit, retroactive to January 1, 2015. During the three months ended December 31, 2015, the Company recorded $14.2 million of deferred tax liabilities in connection with the acquisition of BioStorage.
During the three months ended December 31, 2014, the tax benefit was driven by U.S. pre-tax losses incurred during the period, $0.6 million of reductions in unrecognized tax benefits resulting from the expiration of the statute of limitations in various foreign jurisdictions and $0.9 million of tax benefits resulting from the reinstatement of the U.S. federal research and development tax credit, retroactive to January 1, 2014. These benefits were partially offset by foreign income taxes and interest related to unrecognized tax benefits.
The Company evaluates the realizability of its deferred tax assets by tax-paying entity and assesses the need for a valuation allowance on a quarterly basis. To perform this analysis the Company evaluates the profitability of each tax-paying entity on a historic cumulative basis and on a forward looking basis. The Company incurred U.S. losses during the first quarter of fiscal year 2016 as a result of a decline in the business cycle. Despite these losses, there are indications existing in the business that stronger business performance can be expected for the remainder of the fiscal year. The Company expects to be profitable in the U.S. for the full fiscal year, and therefore did not record an additional valuation allowance during the current period. There is, however, a possibility the Company does not meet these expectations and, in a future period, may find the need to record an additional valuation allowance against its deferred tax assets in the U.S.
As of December 31, 2015, the Company has continued to maintain a valuation allowance in the United States against certain tax credits and state net operating losses due to the uncertainty of their realization based on long-term Company forecasts and the expiration dates on these attributes. The Company has also continued to maintain a valuation allowance in certain jurisdictions that have not generated historical cumulative profitability.
The Company is subject to U.S. federal income tax and various state, local and international income taxes in various jurisdictions. The amount of income taxes paid is subject to the Company's interpretation of applicable tax laws in the jurisdictions in which it files tax returns. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company has income tax audits in progress in various jurisdictions in which it operates. The years subject to examination vary for the U.S. and international jurisdictions, with the earliest tax year being 2009. It is reasonably possible that the related unrecognized tax benefits could change from those recorded in the Company's unaudited Consolidated Balance Sheets based on the outcome of these examinations or the expiration of statutes of limitations for specific jurisdictions. The Company currently anticipates that it is reasonably possible that the unrecognized tax benefits will be reduced by approximately $1.2 million within the next twelve months as a result of the lapse of statutes of limitations in various foreign tax jurisdictions.