Income Taxes |
3 Months Ended |
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Jun. 30, 2016 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
For the three month periods ended June 30, 2016 and 2015, the Company recorded tax expense of $1,015 on pre-tax income of $3,659 and tax expense of $2,467 on pre-tax income of $6,993, respectively. During the three months ended June 30, 2015, the Company accrued an additional deferred tax liability of $455 due to an increase in the provincial tax rate in Alberta, Canada. Our anticipated annual effective tax rate before discrete events is approximately 27.6% and has been applied to our consolidated pre-tax income for the three months ended June 30, 2016. For the three months ended June 30, 2015, our tax provision reflected an annual effective tax rate before discrete events of 28.5%.
We have adopted a permanent reinvestment position whereby we expect to reinvest our foreign earnings for most of our foreign subsidiaries and do not expect to repatriate future earnings. As a result of the adoption of a permanent reinvestment position, we do not accrue a tax liability in anticipation of future dividends from most of our foreign subsidiaries. The estimated annual effective tax rate for the fiscal year ending March 31, 2017 reflects the estimated taxable earnings of our various foreign subsidiaries and the applicable local tax rates, after accounting for certain permanent differences, such as nondeductible compensation expenses.
As of June 30, 2016, we have established a long-term liability for uncertain tax positions in the amount of $674, all of which is related to the IPI acquisition. During the three months ended June 30, 2016, the Company recognized related accrued interest and penalties of $14 as income tax expense related to our current uncertain tax positions.
As of June 30, 2016, the tax years for fiscal 2012 through fiscal 2016 remain open to examination by the major taxing jurisdictions to which we are subject.
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