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INCOME TAXES
9 Months Ended
Mar. 31, 2014
INCOME TAXES [Abstract]  
INCOME TAXES

NOTE 7. INCOME TAXES

In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings from continuing operationswas 35.3% and 35.0% for the three and nine months ended March 31, 2014, respectively, and 33.9% and 33.2% for the three and nine months ended March 31, 2013, respectively. The higher rates for the three and nine months ended March 31, 2014, were driven by the non-tax deductible remeasurement loss (Note 10) and other losses in Venezuela. In addition, the rate for the nine months ended March 31, 2013 was reduced by favorable tax settlements.

The balance of unrecognized tax benefits as of March 31, 2014 and June 30, 2013, included potential net benefits of $27 and $24, respectively, which, if recognized, would reduce the effective tax rate on earnings from continuing operations.

It is reasonably possible that up to $30 of other unrecognized tax benefits may be recognized in the next twelve months.

The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The total balance of accrued interest and penalties related to uncertain tax positions was $11 and $8 as of March 31, 2014 and June 30, 2013, respectively. Interest and penalties included in income tax expense resulted in a net expense of $2 and $3 for the three and nine months ended March 31, 2014, respectively, and net expense of $1 for both the three and nine months ended March 31, 2013.

The Company files income tax returns in U.S. federal and various state, local and foreign jurisdictions. The U.S. federal statute of limitations has expired for all tax years through June 30, 2010. Various income tax returns in state and foreign jurisdictions are currently in the process of examination.