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Income Taxes
9 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

Income taxes are recorded in our quarterly financial statements based on our estimated annual effective income tax rate, subject to adjustments for discrete events, should they occur.  The effective tax rates used in the calculation of income taxes were 37.6% and 35.2% for the three months ended December 31, 2016 and 2015, respectively. The effective rates used in the calculation of income taxes were 36.7% and 35.2% for the nine months ended December 31, 2016 and 2015, respectively. The increase in the effective tax rate for the three and nine months ended December 31, 2016 was primarily due to non-deductible goodwill associated with the sale of rights to use Comet in certain geographic areas and the lower tax basis in e.p.t and Dermoplast. See Note 8 above for further information on the sale of rights to use Comet.

During the nine months ended December 31, 2016, we realized a net reduction to our deferred tax liability of $37.7 million as a result of the sale of Pediacare, New Skin, Fiber Choice, Dermoplast and e.p.t brands.

At December 31, 2016, a 100% owned subsidiary of the Company had a net operating loss carryforward of approximately $7.1 million ($2.5 million, tax effected), which may be used to offset future taxable income of the consolidated group and begins to expire in 2025. The Company expects to fully utilize the loss carryover before it expires.  The net operating loss carryforward is subject to an annual limitation as to usage under Internal Revenue Code Section 382 of approximately $33.6 million.

The balance in our uncertain tax liability was $3.7 million at December 31, 2016 and $4.1 million at March 31, 2016. During the three months ended December 31, 2016, we reduced our uncertain tax liability by $1.0 million related to the expiration of the statute of limitations and increased our uncertain tax liability by $0.6 million related to the current year. We recognize interest and penalties related to uncertain tax positions as a component of income tax expense.  We did not incur any material interest or penalties related to income taxes in any of the periods presented.