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Note 10 - Income Taxes
9 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
10
– Income Taxes
 
For interim income tax reporting, we estimate our annual effective tax rate and apply this effective tax rate to our year to date pre-tax income. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, settlement with taxing authorities and foreign currency fluctuations.
 
Our effective income tax rate was
16.2
and
24.7
percent for the
three
months ended
December
31,
2016
and
2015,
respectively, and 
18.6
 and
26.5
 percent for the 
nine
months ended 
December
 
31,
 
2016
 and 
2015,
 respectively. The effective tax rate for the
three
and
nine
months ended
December
31,
2016
differed from the statutory federal rate of
35
percent primarily as a result of the impact of state income taxes, domestic manufacturing deductions, research and development tax credits, foreign rate differential and share-based payment awards for employees. We anticipate that our effective tax rate for the year ending
March
31,
2017
will approximate
22
to
25
percent, plus or minus the
fourth
-quarter impact of excess tax benefits and deficiencies associated with share-based payment awards to employees. The excess tax benefits and deficiencies associated with share-based payment awards to our employees have and, in the future,
may
cause large fluctuations in our realized effective tax rate based on the timing, volume, and nature of stock options exercised under our share-based payment program.
 
During the
nine
months ended
December
31,
2016,
the IRS examination of our tax year ended
March
31,
2015
was completed with
no
change to the reported tax liability. We have reserved for any other potential adjustments for income taxes that
may
result from future examinations by tax authorities, and we believe the final outcome of these examinations or agreements will not have a material effect on our financial condition, results of operations or cash flows.
 
Since we are subject to audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next
12
months. However, we do not expect the change, if any, to have a material effect on our financial condition or results of operations within the next
12
months.