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Income Taxes
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3 Months Ended |
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Jun. 30, 2013
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| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
Our anticipated annual effective tax rate before discrete events of approximately 26.0% has been applied to our consolidated pre-tax income for the three month period ended June 30, 2013. For the three months ended June 30, 2012, the Company’s provision for income taxes reflects an effective rate of approximately 35.5% and an after discrete event rate of 35.5%.
During the three months ended June 30, 2013, 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 result of this policy change, we will no longer accrue a tax liability in anticipation of future dividends from our foreign subsidiaries. The estimated annual effective tax rate for the year ending March 31, 2014 reflects the estimated taxable earnings of our various foreign subsidiaries and the applicable local tax rates and after accounting for certain permanent differences, such as nondeductible compensation expenses. For the three month period ended June 30, 2013 and 2012, the Company recorded tax expense (benefit) of $(2,437) and $3,634 on pre-tax income (loss) of $(9,375) and $10,234, respectively.
As of June 30, 2013, we have established a long-term liability for uncertain tax positions in the amount of $1,271. There has been no material adjustments to the liability during the three month period ended June 30, 2013. All of our unrecognized tax benefits at June 30, 2013 would affect our effective income tax rate if recognized, though the Company does not expect to recognize any tax benefits in the next twelve months. The Company recognizes related accrued interest and penalties as income tax expense and has accrued $380 for the three months ended June 30, 2013, resulting in a cumulative total accrual of $1,651.
As of June 30, 2013, the tax years 2006 through 2011 remain open to examination by the major taxing jurisdictions to which we are subject. The Company's U.S. federal income tax returns are under exam for the Predecessor's tax period ended April 30, 2010 and the tax years ended March 31, 2010, 2009 and 2008. The Company's Canadian federal income tax returns are under exam for the Predecessor's tax years ended March 31, 2008, 2009 and 2010. See Note 10. Commitments and Contingencies.
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