Income Taxes

9 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded an income tax expense of $1,929,000 and $442,000 for the three and nine months ended December 31, 2024, respectively, and income tax expense of $3,911,000 and $12,405,000 for the three and nine months ended December 31, 2023, respectively. Income tax as a percentage of pre-tax income was 33% in the three months ended December 31, 2024 and (22)% in the nine months ended December 31, 2024. Income tax as a percentage of pre-tax income was 29% and 26% in the three and nine months ended December 31, 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. Additionally, during the three and nine months ended December 31, 2024, income tax when reflected as a percentage of Income (Loss) was impacted by immaterial discrete items.

The Company estimates that the effective tax rate related to continuing operations will be approximately 29% for fiscal 2025 which includes 3 percentage points related to the pension settlement expense recorded in fiscal 2025.

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.

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