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INCOME TAXES
6 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company and its subsidiaries are subject to taxation in the U.S. and in various foreign and state jurisdictions. The effective tax rates for the three and six months ended September 30, 2015 were 27.4% and 23.2%, respectively compared to 21.4% and 22.0%, respectively for the three and six months ended September 30, 2016.

The decrease in the effective tax rate for the three months ended September 30, 2016 is due primarily to the federal research and development credit, which was permanently reinstated in December 2015, as well as a shift in our geographic mix of income from higher tax jurisdictions to lower tax jurisdictions due in part to the U.S. executive transition costs accrued during the three months ended September 30, 2016. The decrease in the effective tax rate for the six months ended September 30, 2016 is due primarily to the federal research and development credit and a shift in our geographic mix of income from higher tax jurisdictions to lower tax jurisdictions, partially offset by the favorable closure of a tax audit during the six months ended September 30, 2015. The effective tax rates differ from the statutory rate due primarily to the impact of foreign operations taxed at different statutory rates, tax credits, state taxes, and other factors.

Included in long-term income taxes payable in the condensed consolidated balance sheets as of March 31, 2016 and September 30, 2016 were unrecognized tax benefits of $12.7 million and $13.6 million, respectively, which would favorably impact the effective tax rate in future periods if recognized. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense in the condensed consolidated statements of operations.  The accrued interest related to unrecognized tax benefits was $1.6 million and $1.8 million as of March 31, 2016 and September 30, 2016, respectively.  No penalties have been accrued.

The Company and its subsidiaries are subject to taxation in the U.S. and various foreign and state jurisdictions. All U.S. federal tax matters have been concluded for tax years prior to fiscal year 2013. The California Franchise Tax Board completed its examination of the Company's 2007 and 2008 tax years. The Company received a Notice of Proposed Assessment and responded by filing a protest letter. The amount of the proposed assessment is not material. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to fiscal year 2011, except for the United Kingdom, which has been concluded for tax years prior to fiscal year 2015.

The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. The timing of any resolution and/or closure of tax examinations is not certain.