INCOME TAXES

9 Months Ended

Mar. 31, 2012

INCOME TAXES

INCOME TAXES

10.          INCOME TAXES

	For The Three Months Ended						For The Nine Months Ended
	March 31,			March 31,			March 31,			March 31,
	2012			2011			2012			2011
	(Amounts in thousands, except rate)						(Amounts in thousands, except rate)
Income tax expense	$	14,864		$	10,339		$	41,297		$	28,641
Effective tax rate	35.6		%	33.7		%	34.8		%	34.7		%

The increase in the effective tax rate for the three months ended March 31, 2012 is primarily related to (i) an increase in tax expense related to earnings from non-U.S. subsidiaries, and (ii) an increase in tax expense related to changes in estimates for uncertain tax positions.  The increase in tax expense for the three months ended March 31, 2012 is partially offset by a decrease in tax expense relating to a decrease in foreign currency 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 March 31, 2012 and June 30, 2011, the Company had $17.7 million and $18.8 million of total gross unrecognized tax benefits, respectively.  The decrease in gross unrecognized tax benefits was primarily a result of statute of limitations expiring during the period.  In addition, there was additional tax recorded during the period primarily relating to tax positions of International Royalty Corporation entities taken prior to or upon the acquisition by the Company during fiscal year 2010 that is partially offset by tax credits.  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 March 31, 2012 and June 30, 2011, the amount of accrued income-tax-related interest and penalties was $2.3 million and $1.5 million, respectively.