Income Taxes

9 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense (benefit) as a percentage of income (loss) from continuing operations before income tax expense was 29% and 28% in the three months ended December 31, 2023 and December 31, 2022, respectively, and 26% and 35% in the nine months ended December 31, 2023 and December 31, 2022, respectively. Typically these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

During the nine months ended December 31, 2022, the rate was unfavorably impacted 5 percentage points due to settlement of income tax assessments related to tax periods prior to the Company’s acquisition of Stahl Cranesystems GmbH (“STAHL"). In accordance with the tax indemnification clause of the share purchase agreement, the Company received full reimbursement from STAHL’s prior owner which was recorded as a gain in Other (income) expense, net on the Condensed Consolidated Statements of Operations during the period. The tax rate for the nine months ended December 31, 2022 also reflects an unfavorable impact of 4 percentage points due to the recording of a U.S. state tax valuation allowance. The valuation allowance primarily relates to changes in the Company’s expectations regarding its ability to more likely than not utilize certain state net operating losses prior to their expiration.

The Company estimates that the effective tax rate related to continuing operations will be approximately 24% to 26% for fiscal 2024.

Refer to the Company’s consolidated financial statements included in its 2023 10-K for further information on income taxes.