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Income taxes
9 Months Ended
Mar. 31, 2012
Income Tax Disclosure [Abstract]  
Income taxes
Income taxes
The Company’s effective tax rate on its income before income taxes was 26.6% in the third quarter of fiscal 2012 as compared with 29.1% in the third quarter of fiscal 2011. During the third quarter of fiscal 2012, the Company's effective tax rate was favorably impacted by releases of valuation allowances, favorable audit settlements, and releases of reserves.   During the third quarter of fiscal 2011, the Company's effective tax rate was negatively impacted by increases to reserves, partially offset by releases of valuation allowances. For the first nine months of fiscal 2012 and 2011, the Company's effective tax rate was 28.3% and 30.7%, respectively. The decrease is a result of a favorable tax adjustment, primarily related to releases of valuation allowance and favorable audit settlements, partially offset by increases to reserves.  During the first nine months of fiscal 2011, the Company recognized an income tax adjustment of $19,800,000, and $0.13 per share on a diluted basis, primarily related to the non-cash write-off of a deferred tax asset associated with the integration of acquired legal entities, which was partially offset by a non-taxable gain on bargain purchase (see Note 2).
The tax rate is impacted primarily by the statutory tax rates of the countries in which the Company operates and the related levels of income in those jurisdictions as well as assessment of tax risks that are common to multinational enterprises and assessments of the realizability of deferred tax assets and the associated establishment or release of tax valuation allowances.

In April 2012, the Company received a U.S. Internal Revenue Service Revenue Agent's Report related to the tax audit of an acquired company which requires Joint Committee review and approval. If approved, the Company will recognize additional net operating losses as determined under the settlement as well as the release of related reserves.  As a result, it is reasonably possible that within the next twelve months the Company may record a tax benefit in the range of $15,000,000 to $17,000,000, which would favorably impact the effective tax rate in the period in which the matter is effectively settled.