XML 22 R12.htm IDEA: XBRL DOCUMENT v3.5.0.1
Income Taxes
9 Months Ended
May 31, 2016
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
INCOME TAXES
The effective tax rate for the three and nine months ended May 31, 2016 was 1.7% and 13.1%, respectively, and 751.5% and 82.8% for the three and nine months ended May 31, 2015, respectively. The decrease in the effective tax rate for the three and nine months ended May 31, 2016 as compared with the same periods last year was driven primarily by prior year losses with no tax benefit due to valuation allowances and current year tax benefits related to the extension of certain expired tax provisions by the Protecting Americans from Tax Hikes (“PATH”) Act of 2015.
We record quarterly taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory federal income tax rate in the current year is primarily attributable to our overall foreign rate being less than the U.S. statutory federal income tax rate and the extension of certain expired tax provisions by the PATH Act of 2015, partially offset by current year foreign losses with no benefit.
As of May 31, 2016, the Company's gross unrecognized tax benefits totaled $2.6 million. If recognized, $1.6 million of the total unrecognized tax benefits would favorably affect the Company's effective tax rate. The Company reports interest and penalties related to income tax matters in income tax expense. As of May 31, 2016, the Company had $1.1 million of accrued interest and penalties on unrecognized tax benefits.
The Company’s statute of limitations is open in various jurisdictions as follows: Germany - from 2005 onward, France - from 2010 onward, U.S. - from 2012 onward, Belgium - from 2013 onward, other foreign jurisdictions - from 2006 onward.
The amount of unrecognized tax benefits is expected to change in the next 12 months; however, the change is not expected to have a significant impact on the financial position of the Company.