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Income Taxes
6 Months Ended
Dec. 31, 2016
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, 2016 was $1.3 million, or 15.7 percent of pre-tax income as compared with $3.6 million, or 23.8 percent of pre-tax income for the three months ended December 31, 2015. Income tax expense for the six months ended December 31, 2016 was $2.2 million or 73.3 percent of pre-tax income as compared with $10.8 million, or 34.6 percent of pre-tax income for the six months ended December 31, 2015.

Income tax expense in the current quarter includes tax benefits of $0.9 million associated with the repatriation of earnings from one of our foreign subsidiaries. Income tax expense also includes a $0.3 million benefit primarily due to additional research and development credits claimed in the prior year. Income tax expense for the three months ended December 31, 2015 includes a tax benefit 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.

In October 2016, the Company made a voluntary pension contribution of $100.0 million that was announced in connection with the plan freeze.  As a result of the pension contribution, income tax expense in the six months ended December 31, 2016 includes a discrete tax charge of $2.1 million due to reduced tax benefits for domestic manufacturing claimed in prior periods. Tax expense for the six months ended December 31, 2015 includes a tax charge of $2.0 million for the deferred tax liability on unremitted foreign earnings of one of our foreign subsidiaries as a result of a decision to sell an equity method investment in India. 

As of June 30, 2016, the Company had $106.5 million of indefinitely reinvested foreign earnings for which deferred income taxes have not been provided.  Due to a change in foreign cash requirements, the Company has changed its intent with regard to the indefinite reinvestment of foreign earnings of one of its foreign subsidiaries. As a result of this change, the Company repatriated $11.5 million of foreign earnings during the three months ended December 31, 2016 and recognized associated tax benefits of $0.9 million. The remaining balance, approximately $95.0 million, of undistributed foreign earnings continues to be indefinitely reinvested.