Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 3 Months Ended
Sep. 30, 2013
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,
 
2013
 
2012
Income before income taxes
$
139,864

 
$
176,542

Provision for income taxes
$
28,667

 
$
41,175

Effective tax rate
20.5
%
 
23.3
%

The Company’s estimated annual effective tax rate for the fiscal year ending June 30, 2014 is approximately 22.9%.
The difference between the actual effective tax rate of 20.5% during the quarter and the estimated annual effective tax rate of 22.9% is primarily due to a decrease in tax expense of $2.0 million related to deductions for employee stock activity and a decrease in tax expense of $2.7 million related to a non-taxable increase in the assets held within the Company's Executive Deferred Savings Plan.
Tax expense was lower as a percentage of income during the three months ended September 30, 2013 compared to the three months ended September 30, 2012 primarily due to the impact of the following items:
•
Tax expense was decreased by $2.3 million during the three months ended September 30, 2013 due to an increase in the proportion of the Company's earnings generated in jurisdictions with tax rates lower than the U.S. statutory tax rate; and
•
Tax expense was decreased by $1.2 million during the three months ended September 30, 2013 related to the U.S. federal research credit. The research credit was not available during the three months ended September 30, 2012, because the credit expired on December 31, 2011. On January 2, 2013, the American Taxpayer Relief Act of 2012 reinstated the research credit and extended the credit through December 31, 2013.
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, 2009. 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, 2009. 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 $7.2 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.