INCOME TAXES

3 Months Ended

Sep. 30, 2011

INCOME TAXES

INCOME TAXES

8.             INCOME TAXES

	For The Three Months Ended
	September 30,			September 30,
	2011			2010
	(Amounts in thousands, except rate)
Income tax expense	$	12,381		$	6,927
Effective tax rate	32.1		%	34.8		%

The decrease in the effective tax rate for September 30, 2011 is primarily related to (i) the decrease in tax expense from changes in estimates of uncertain tax positions, and (ii) the decrease in tax expense relating to the decrease in unrealized foreign exchange gains.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for fiscal years before 2007.

As of September 30, 2011 and June 30, 2011, the Company had $19.1 million and $18.8 million of total gross unrecognized tax benefits, respectively.  The increase in gross unrecognized tax benefits was primarily related to tax positions of International Royalty Corporation entities taken prior to or upon the acquisition by the Company during fiscal year 2010.  These increases were offset by a decrease in the unrecognized tax benefits as a result of statute of limitations expiring during the quarter.  If recognized, these unrecognized tax benefits would impact the Company’s effective income tax rate.

The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At September 30, 2011 and June 30, 2011, the amount of accrued income-tax-related interest and penalties was $1.6 million and $1.5 million, respectively.