Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 3 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The following table provides details of income taxes:
(Dollar amounts in thousands)
Three months ended September 30,
 
2012
 
2011
Income before income taxes
$
176,542

 
$
247,262

Provision for income taxes
$
41,175

 
$
55,267

Effective tax rate
23.3
%
 
22.4
%

The Company’s estimated annual effective tax rate for the fiscal year ending June 30, 2013 is approximately 24.7%.
The difference between the actual effective tax rate of 23.3% during the quarter and the estimated annual effective tax rate of 24.7% is primarily due to a decrease in tax expense of $1.8 million as a result of a non-taxable increase in the value of the assets held within the Company’s Executive Deferred Savings Plan during the three months ended September 30, 2012.
Tax expense was higher as a percentage of income during the three months ended September 30, 2012 compared to the three months ended September 30, 2011 primarily due to the expiration of the federal research credit which occurred on December 31, 2011. The federal research credit decreased tax expense by $2.7 million during the three months ended September 30, 2011.
In the normal course of business, the Company is subject to examination by tax authorities throughout the world. The Company is subject to U.S. federal income tax examination for all years beginning from the fiscal year ended June 30, 2010.  The Company is subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2007. 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, 2007. It is possible that certain examinations may be concluded in the next twelve months. The Company believes it is possible that it may recognize up to $1.7 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.