|
Income Taxes
|
9 Months Ended |
|---|---|
|
Dec. 31, 2012
|
|
| Income Tax Expense (Benefit) [Abstract] | |
| Income Taxes |
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.
The Company's effective income tax rate was 51.2% and 39.5% for the three and nine months ended December 31, 2012, respectively and 37.2% and 33.3% for the three and nine months ended December 31, 2011, respectively. In the three and nine months ended December 31, 2012, the Company recorded net tax benefits of $1.4 million and $3.4 million, respectively, which resulted from an estimated annual effective tax rate of 38.1% for the fiscal year plus the effects of discrete items. For the three and nine months ended December 31, 2012, there was a $0.3 million and $0.1 million , respectively of discrete tax benefit resulting primarily from the deferred state tax impact of changes in state apportionment offset by tax shortfalls related to settlements of share-based compensation.
In the three and nine months ended December 31, 2011, the Company recorded a tax benefit of $0.3 million and tax expense of $11.1 million, respectively. These tax provisions resulted from an effective tax rate of 43% for the fiscal year plus separate discrete items. For the nine months ended December 31, 2011, the Company recorded a discrete tax benefit of $2.1 million for a reduction in an uncertain tax position that was settled during the period and $12.5 million tax expense on the gain on the CNS asset sale, which also was treated as a discrete item.
|