Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.3.0.814
Income Taxes
 3 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 10 – INCOME TAXES
The following table provides details of income taxes:

Three months ended
September 30,
(Dollar amounts in thousands)
2015
 
2014
Income before income taxes
$
134,299

 
$
99,007

Provision for income taxes
$
29,402

 
$
26,774

Effective tax rate
21.9
%
 
27.0
%

The Company’s estimated annual effective tax rate for the fiscal year ending June 30, 2016 is forecasted to be approximately 22%.
Tax expense was lower as a percentage of income before taxes during the three months ended September 30, 2015 compared to the three months ended September 30, 2014 primarily due to the impact of the following items:
•
Tax expense was decreased by $8.2 million during the three months ended September 30, 2015 related to a decrease in the Company’s unrecognized tax benefits from the expiration of the statute of limitations; partially offset by
•
Tax expense was increased by $3.0 million during the three months ended September 30, 2015 related to a non-deductible decrease in the value of the assets held within the Company’s Executive Deferred Savings Plan.
In the normal course of business, the Company is subject to examination by tax authorities throughout the world. The Company is subject to United States federal income tax examination for all years beginning from the fiscal year ended June 30, 2012 and is under United States federal income tax examination for the fiscal year ended June 30, 2013. The Company is subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2011. The Company is also subject to examinations in other major foreign jurisdictions, including Singapore, for all years beginning from the fiscal year ended June 30, 2011. It is possible that certain examinations may be concluded in the next twelve months. The Company believes that it may recognize up to $19.1 million of its existing unrecognized tax benefits within the next twelve months as a result of the lapse of statutes of limitations and the resolution of examinations with various tax authorities.