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Income Taxes
9 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The effective income tax rate from continuing operations was 3.7% and 33.8% for the three months ended March 31, 2013 and 2012, respectively, and 21.6% and 35.4% for the nine months ended March 31, 2013 and 2012, respectively. The Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.
The effective tax rate for the three and nine months ended March 31, 2013 was lower than the comparable periods of the prior year primarily as a result of an income tax benefit of $13,186 recorded in the current quarter related to a United States worthless stock tax deduction for our investment in one of our United Kingdom subsidiaries. The effective rate was also impacted by the acquisitions of Daniels and the UK Ambient Grocery Brands in the United Kingdom and the associated increased income in its lower tax rate jurisdiction. Additionally, we recorded a tax benefit of $1,668 during the nine months ended March 31, 2013 primarily consisting of a reduction in the carrying value of net deferred tax liabilities resulting from a reduction in the statutory tax rate in the United Kingdom enacted in the first quarter of fiscal 2013.
The effective income tax rates differed from the federal statutory rate primarily due to the items noted previously, as well as the effect of state and local income taxes. There were no material changes in unrecognized tax benefits during the first nine months of fiscal 2013.