Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
9 Months Ended
Dec. 31, 2011
Income Taxes  
Income Taxes

Note 10. Income Taxes

 

During the third quarter of fiscal year 2012, the Company incurred $2.1 million income tax expense which is comprised of $1.4 million related to two foreign tax jurisdictions that imposed new tax laws which limited the utilization of net operating losses and $0.7 million primarily related to income taxes for foreign operations.

 

During the third quarter of fiscal year 2011, the Company incurred $0.6 million of income tax expense which primarily relates to foreign operations.  There was no U.S. federal or state income tax expense due to the utilization of net operating loss carryforward deductions and a valuation allowance on net deferred tax assets.

 

Income tax expense for the nine month period ended December 31, 2011 was $5.9 million, comprised of a $6.9 million income tax expense related to foreign operations, a $0.9 million U.S. federal income tax benefit related to a prior year settlement, and $0.1 million of state income tax benefit.

 

Income tax expense for the nine month period ended December 31, 2010 was $2.5 million, comprised of $2.4 million related to foreign operations and $0.1 million of state income tax expense.

 

The effective income tax rate was 24.3% and 5.6% for the nine month periods ended December 31, 2011 and 2010, respectively.