Income Taxes |
3 Months Ended |
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Jun. 30, 2017 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
For the three month periods ended June 30, 2017 and 2016, the Company recorded tax expense of $227 on pre-tax income of $941 and tax expense of $1,015 on pre-tax income of $3,659, respectively. Our anticipated annual effective tax rate is approximately 24.5% and has been applied to our consolidated pre-tax income for the three months ended June 30, 2017. For the three months ended June 30, 2016, our tax provision reflected an annual effective tax rate of 27.6%.
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, 2018 reflects the estimated taxable earnings of our various foreign subsidiaries and the applicable local tax rates, after accounting for certain permanent differences, such as non-deductible compensation expense.
As of June 30, 2017, we have established a long-term liability for uncertain tax positions in the amount of $543, all of which is related to the IPI acquisition. We expect such long-term liability to be released as a discrete tax benefit during the three month period ending December 31, 2017 as the audit periods to which they relate will expire. During the three months ended June 30, 2017, the Company recognized related accrued interest and penalties of $10 as income tax expense related to our current uncertain tax positions.
As of June 30, 2017, the tax years for fiscal 2013 through fiscal 2017 remain open to examination by the major taxing jurisdictions to which we are subject.
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