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Income Taxes
6 Months Ended
Dec. 31, 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 December 31, 2015 was $3.6 million, or 23.8 percent of pre-tax income as compared with $14.1 million, or 36.9 percent of pre-tax income for the three months ended December 31, 2014. Income tax expense for the six months ended December 31, 2015 was $10.8 million, or 34.6 percent of pre-tax income as compared with $20.6 million, or 35.4 percent of pre-tax income for the six months ended December 31, 2014. The current period tax expense includes net tax benefits of $0.8 million primarily for additional research and development credits as a result of the December 2015 enactment of the Protecting Americans from Tax Hikes Act of 2015. Tax expense for the six months ended December 31, 2015 also includes a discrete tax charge of $2.0 million for the deferred tax liability on unremitted foreign earnings of one of our foreign subsidiaries.  Tax expense in the prior year includes a net tax charge of $1.6 million for the unfavorable impact of bonus depreciation on domestic manufacturing benefits net of additional research and development credits as a result of the enactment of the Tax Increase Prevention Act of 2014. 

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 first quarter of fiscal year 2016.  The remaining balance, approximately $112.9 million, of undistributed foreign earnings continues to be indefinitely reinvested.