XML 44 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Taxes
3 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur.
 
Income tax expense for the three months ended September 30, 2015 was $7.2 million, or 44.7 percent of pre-tax income as compared with $6.5 million, or 32.5 percent of pre-tax income for the three months ended September 30, 2014. Tax expense for the three months ended September 30, 2015 includes a discrete tax charge for the deferred tax liability on unremitted foreign earnings of one of our foreign subsidiaries.

As of June 30, 2015, we had $118.5 million of indefinitely reinvested foreign earnings for which we have not provided deferred income taxes.  Due to a change in business strategy for one of our foreign subsidiaries, we have changed our intent with regard to the indefinite reinvestment of the foreign earnings for this subsidiary.  As a result of this change, we recorded a discrete deferred tax charge of $2.0 million in the quarter.  The remaining balance, approximately $112.9 million, of undistributed foreign earnings continues to be indefinitely reinvested.