Income Taxes |
6 Months Ended |
|---|---|
Sep. 30, 2015 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
For the six month periods ended September 30, 2015 and 2014, the Company recorded tax expense of $5,508 on pre-tax income of $17,015 and tax expense of $4,853 on pre-tax income of $28,135, respectively. During the six months ended September 30, 2015, the Company accrued additional deferred tax liability of $455 due to an increase in the provincial tax rate in Alberta, Canada. The deferred tax liability relates primarily to amortizing and indefinite life intangibles allocated to our Canadian subsidiary. During the six months ended September 30, 2014, the Company released a deferred tax liability of $3,224 for taxes accrued on previously undistributed foreign earnings that are no longer expected to be repatriated. Our anticipated annual effective tax rate before discrete events is approximately 29.4% and has been applied to our consolidated pre-tax income for the six months ended September 30, 2015. For the six months ended September 30, 2014, 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 no longer 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, 2016 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 September 30, 2015, we have established a long-term liability for uncertain tax positions in the amount of $1,914, of which $1,119 is related to the IPI acquisition. We expect $1,281 of the liability to be released in the third quarter of fiscal 2016 ending on December 31, 2015, of which $501 is related to the IPI acquisition. During the six months ended September 30, 2015, the Company recognized related accrued interest and penalties of $47 as income tax expense.
As of September 30, 2015, the tax years 2011 through 2015 remain open to examination by the major taxing jurisdictions to which we are subject.
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