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Income Taxes
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3 Months Ended | ||
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Jun. 30, 2012
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| Income Taxes [Abstract] | |||
| Income Taxes |
The Company uses an estimated annual effective tax rate based on expected annual income to determine the quarterly provision for income taxes before discrete items. The impact of additional discrete items is recorded in the quarter in which they occur. In assessing the realizability of the deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized through the generation of future taxable income. The Company will continue to reassess realizability of the deferred tax assets going forward. In the quarter ended June 30, 2012, the Company recorded a net tax benefit of $1.0 million which resulted from an estimated annual effective tax rate of 38.5% for the fiscal year plus the effects of a discrete item. There was $71,000 of discrete tax expense resulting from the write off of the unrealized portion of deferred tax assets associated with fully resolved equity awards. In the quarter ended June 30, 2011, the Company recorded a tax expense of $13.2 million related to net income from continuing operations which resulted from an estimated annual effective tax rate of 42.9% for the fiscal year plus separate discrete items. The gain on the CNS asset sale was treated as a discrete item and the provision related specifically to that item was $12.4 million in the three months ended June 30, 2011.
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