Note 15 Income Taxes

9 Months Ended

Dec. 31, 2012

Income Tax Expense Benefit [Abstract]

Income Tax Disclosure [Text Block]

15. Income Taxes

For the three and nine months ended December 31, 2012, we recorded income tax provisions of $782,000 and $5.1 million, reflecting effective tax rates of 39.7% and 34.8%, respectively. For the three and nine months ended December 31, 2011, we recorded income tax provisions of $311,000 and $10.8 million, reflecting effective tax rates of 5.2% and 28.8%, respectively. For the three and nine months ended December 31, 2012, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions. For the three and nine months ended December 31, 2011, the effective tax rates were affected by changes in the estimates of annual income in foreign jurisdictions and by a valuation allowance release.

On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012, or the Taxpayer Relief Act. The Taxpayer Relief Act retroactively extended the research and development tax credit for a two-year period from January 1, 2012 through December 31, 2013. The research and development credit had previously expired, effective December 31, 2011. The effects of changes in tax laws are recognized in the period the new legislation is enacted. The reinstatement of an expired provision in a later period, even if retroactive, requires an entity to wait until the date of enactment before factoring the effects of the legislation into its financial statements. We do not expect the enactment of the research and development tax credit to have a material effect on our condensed consolidated financial statements.