Income Taxes

6 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded an income tax benefit of $4,908,000 and $1,488,000 for the three and six months ended September 30, 2024, respectively, and income tax expense of $5,100,000 and $8,494,000 for the three and six months ended September 30,

2023, respectively. Income tax as a percentage of the pre-tax loss was 25% and 19% in the three and six months ended September 30, 2024, respectively. Income tax as a percentage of the pre-tax income was 24% and 25% in the three and six months ended September 30, 2023, 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.

The Company is subject to the European Union’s Pillar Two Directive legislation which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework. Similar legislation has been implemented in other countries that is effective in fiscal year 2025. The Company does not expect a material impact to its fiscal year 2025 financial statements as a result of the Pillar Two legislation implemented by any jurisdiction.

The Company estimates that the effective tax rate related to continuing operations will be approximately 26% for fiscal 2025 which includes 2 percentage points related to the pension settlement expense recorded in fiscal 2025.

Refer to the Company’s consolidated financial statements included in the 2024 10-K for further information on income taxes.