Income Tax Expense (Benefit)

9 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Income Tax Expense (Benefit)

Income Tax Expense

Income tax expense includes United States federal, state and local, and foreign income taxes, and is based on reported pre-tax income. The effective income tax rates for the three month periods ended December 31, 2011 and 2010 were 34.1% and 34.3%, respectively. The effective income tax rates for the nine month periods ended December 31, 2011 and 2010 were 34.4% and 36.6%, respectively.

Income tax expense is provided on an interim basis based upon our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. In determining the estimated annual effective income tax rate, we analyze various factors, including projections of our annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives.

As of March 31, 2011, we had $9,594 in unrecognized tax benefits, of which $4,975 would favorably impact the effective tax rate if recognized. As of December 31, 2011, we had $6,019 in unrecognized tax benefits, of which $1,400 would favorably impact the effective tax rate if recognized. The decrease in unrecognized tax benefits for the nine months ended December 31, 2011 is primarily due to a decrease in unrecognized tax benefits relating to prior years. We believe that it is reasonably possible that unrecognized tax benefits could decrease by up to $877 within 12 months of December 31, 2011, primarily as a result of settlements with tax authorities. As of December 31, 2011, we have recognized a liability for interest of $946 and penalties of $81.

We operate in numerous taxing jurisdictions and are subject to regular examinations by various United States federal, state, and local, as well as foreign, jurisdictions. We are no longer subject to United States federal examinations for years before fiscal 2010 and, with limited exceptions, we are no longer subject to United States state and local, or non-United States, income tax examinations by tax authorities for years before fiscal 2007. We do not expect the results of these examinations to have a material adverse affect on our consolidated financial statements.