Income Taxes | 3 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Income Taxes [Abstract] | |
| Income Taxes |
Note 17 – Income Taxes The net tax expense of $0.5 million for the three months ended September 30, 2011 primarily relates to the Company’s non-U.S. operations. At September 30, 2011, the Company had a net deferred tax asset of $419.6 million resulting from the release of the valuation allowance in the second quarter of fiscal 2010 on the realizable portion of its net deferred tax assets. Included within the Company’s net operating losses (“NOLs”) of $185.2 million, are acquired NOLs of approximately $61.7 million in connection with the acquisition of SIT. Section 382 and 383 of the Internal Revenue Code limits the utilization of these NOLs and certain other tax attributes. These provisions apply after a Company has undergone an ownership change and is based on the value of the stock of the acquired loss corporation before the ownership change times a long-term tax exempt rate, a rate published by the Internal Revenue Service. The estimated annual limitation of the acquired SIT NOLs is approximately $0.5 million. Additionally, SIT has foreign NOLs with a full valuation allowance totaling approximately $30.0 million. The Company has a full valuation allowance against its remaining net deferred tax assets of $419.6 million (consisting primarily of U.S. net operating loss carryforwards which expire in various amounts between the current year and 2031, and basis differences in property, plant and equipment and intangible assets). Based on the Company’s operating results for the preceding years, it was determined that it was more likely than not that the deferred tax assets would not be realized. |