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Income Taxes
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3 Months Ended |
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Jun. 30, 2014
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| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
For the three month periods ended June 30, 2014 and 2013, the Company recorded tax expense of $53 on pre-tax income of $11,587 and a tax benefit of $2,437 on pre-tax loss of $9,375, respectively. During the three months ended June 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 28.3% and has been applied to our consolidated pre-tax income for the three month period ended June 30, 2014.
As of April 1, 2013, we 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, 2015 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, 2014, we have established a long-term liability for uncertain tax positions in the amount of $869. The Company recognizes related accrued interest and penalties as income tax expense and has accrued $15 for the three months ended June 30, 2014.
As of June 30, 2014, the tax years 2006 through 2013 remain open to examination by the major taxing jurisdictions to which we are subject, except for the United States federal income tax returns, where the federal income tax returns for fiscal 2012 and 2013 remain open.
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