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Income Taxes | 9 Months Ended
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Jun. 30, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax provision was $0.8 million for the nine month period ended June 30, 2015. Net tax benefits specific to the nine months ended June 30, 2015 were $0.9 million resulting from the reinstatement of the research and development tax credit for calendar year 2014 and reversal of tax reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions. These discrete tax benefits were partially offset by a discrete tax expense for the adjustment of state rate on net deferred tax assets. For the nine month period ended June 30, 2015, our effective tax rate before items specific to the period was more than the U.S. statutory rate due primarily to mix of income between taxing jurisdictions, certain of which have higher statutory tax rates than the U.S., an increase in permanent tax items and an increase in certain reserves for unrecognized tax benefits. Income tax benefit was $1.5 million for the nine month period ended June 30, 2014. Net tax benefits specific to the period of $1.4 million related to the re-measurement and reversal of certain income tax reserves as a result of the conclusion in March 2014 of a federal income tax audit for fiscal 2012, a reversal of reserves due to the expiration of statutes of limitation from U.S. and foreign tax jurisdictions and a valuation allowance reversal associated with the reassessment of state research and development tax credits. For the nine month period ended June 30, 2014, our effective tax rate before items specific to the period was more than the statutory rate primarily due to an adjustment for certain foreign income taxed at the U.S. rate and lower than expected benefits associated with certain state credits. 7. INCOME TAXES (CONTINUED) Our effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and tax items specific to the period, such as settlements of audits. We expect that we may record other benefits or expenses in the future that are specific to a particular quarter such as expiration of statutes of limitation, the completion of tax audits, or legislation that is enacted for both U.S. and foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):
Unrecognized tax benefits as of September 30, 2014 | $ | 2,301 |
Increases related to: |
Prior year income tax positions | 110 |
Decreases related to: |
Prior year income tax positions | (255 | )
Settlements | (74 | )
Expiration of statute of limitations | (543 | )
Unrecognized tax benefits as of June 30, 2015 | $ | 1,539 |
The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate is $1.5 million, after considering the impact of interest and deferred benefit items. We expect the total amounts of unrecognized tax benefits will decrease by approximately $0.2 million over the next 12 months. Of the $1.5 million of unrecognized tax benefits, $1.1 million is included in non-current income taxes payable and $0.4 million is included with non-current deferred tax assets on the condensed consolidated balance sheet at June 30, 2015. We recognize interest and penalties related to income tax matters in income tax expense. During both the nine month periods ended June 30, 2015 and 2014, there were insignificant amounts of interest and penalties related to income tax matters in income tax expense. Accrued interest and penalties related to unrecognized tax benefits was $0.3 million and $0.4 million at June 30, 2015 and September 30, 2014, respectively. Our non-current income taxes payable on our condensed consolidated balance sheet includes accrued interest and penalties in addition to the unrecognized tax benefits of $1.1 million at June 30, 2015. At June 30, 2015, we had approximately $28.8 million of accumulated undistributed foreign earnings, for which we have not accrued additional U.S. tax. Our policy is to reinvest earnings of our foreign subsidiaries indefinitely to fund current operations and provide for future international expansion opportunities, and only to repatriate earnings to the extent that U.S. taxes have already been recorded. Although we have no current need to do so, if we change our assertion that we do not intend to repatriate additional undistributed foreign earnings for cash requirements in the United States, we would have to accrue applicable taxes. The amount of any taxes and the application of any tax credits would be determined based on the income tax laws at the time of such repatriation. Under current tax laws, we estimate the unrecognized deferred tax liability to be in the range of $0.9 million to $1.9 million. We operate in multiple tax jurisdictions, including the U.S. and other jurisdictions outside of the U.S. Accordingly, we must determine the appropriate allocation of income to each of these jurisdictions. This determination requires us to make several estimates and assumptions. Tax audits associated with the allocation of this income, and other complex issues, may require an extended period of time to resolve and may result in adjustments to our income tax balances in those years that are material to our consolidated balance sheet and results of operations. We are no longer subject to income tax examination for tax years prior to fiscal 2013 for U.S. federal income tax authorities, and prior to fiscal 2009 for non-U.S. income tax authorities. For state taxing authorities, most notably in California and Texas, we are no longer subject to income tax examination for tax years generally before fiscal 2010, and for Minnesota for tax years prior to fiscal 2013.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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