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Income Taxes
9 Months Ended
Mar. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES

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 Company’s effective tax rate may change from period to period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, state and local income taxes and tax audit settlements.

The effective income tax rate from continuing operations was 35.2% and 34.2% for the three months ended March 31, 2015 and 2014, respectively. The effective income tax rate for the three months ended March 31, 2015 was higher than the prior year period as a result of a higher portion of the Company’s taxable income being recorded in the United States. This change in mix of taxable income is due in part to our recent domestic acquisitions of HPPC and Empire and the associated higher domestic tax rate, and in addition, due to increased expenses in the United Kingdom related to certain integration and factory start and ramp-up activities. The effective income tax rate for the three months ended March 31, 2015 reflects a year-to-date adjustment of the Company’s income tax expense recorded in the current quarter. Such adjustment was based on the change in estimated taxable income by jurisdiction for the full fiscal year as compared to the prior quarter estimates.

The effective income tax rate from continuing operations was 31.9% and 31.8% for the nine months ended March 31, 2015 and 2014, respectively. The effective tax rate for the nine months ended March 31, 2015 was favorably impacted by the non-taxable gains recorded on the pre-existing ownership interests in HPPC and Empire of $8,256 (see Note 4). This was offset by the change in the mix of income by jurisdiction. The effective tax rate for the nine months ended March 31, 2014 was impacted by a reduction in the statutory tax rate in the United Kingdom enacted in the first quarter of fiscal 2014. Such reduction resulted in a decrease of the carrying value of net deferred tax liabilities of $3,777 which favorably impacted the effective tax rate. This amount in the prior year period was partially offset by an increase in the reserve for unrecognized tax benefits of $550 relating to an additional liability associated with an IRS audit that has since been completed.