Income Taxes |
9 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
For the nine month periods ended December 31, 2015 and 2014, the Company recorded tax expense of $7,462 on pre-tax income of $27,638 and tax expense of $11,017 on pre-tax income of $49,902, respectively. During the nine months ended December 31 2015, the Company accrued an additional deferred tax liability of $455 due to an increase in the provincial tax rate in Alberta, Canada. During the nine months ended December 31, 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 29.9% and has been applied to our consolidated pre-tax income for the nine months ended December 31, 2015. For the nine months ended December 31, 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 December 31, 2015, we have established a long-term liability for uncertain tax positions in the amount of $647, all of which is related to the IPI acquisition. During the three months ended December 31, 2015, we reduced our liabilities for uncertain tax positions in the amount of $1,281 as a portion of our uncertain tax positions related to periods which are no longer subject to audit. $501 of the reduction in tax liability related to IPI. During the nine months ended December 31, 2015, the Company recognized related accrued interest and penalties of $23 as income tax expense related to our current uncertain tax positions.
As of December 31, 2015, the tax years for fiscal 2012 through fiscal 2015 remain open to examination by the major taxing jurisdictions to which we are subject.
|