Income Taxes

6 Months Ended

Oct. 01, 2017

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Income Taxes

Income Taxes

The Company’s income tax provision consists of federal, state and foreign income taxes. The tax provision for the second quarters of fiscal 2018 and 2017 was based on the estimated effective tax rates applicable for the full years ending March 31, 2018 and March 31, 2017, respectively, after giving effect to items specifically related to the interim periods. The Company’s effective income tax rate with respect to any period may be volatile based on the mix of income in the tax jurisdictions in which the Company operates and the amount of the Company's consolidated income before taxes.

The consolidated effective income tax rates for the second quarters of fiscal 2018 and 2017 were 21.7% and 26.2%, respectively, and for the six months of fiscal 2018 and 2017 were 21.2% and 25.3%, respectively. The rate decrease in the second quarter and six months of fiscal 2018 compared to the comparable prior year periods of fiscal 2017 is primarily due to changes in the mix of earnings among tax jurisdictions.

Foreign income as a percentage of worldwide income is estimated to be 63% for fiscal 2018 compared to 57% for fiscal 2017. The foreign effective income tax rates for the six months of fiscal 2018 and 2017 were 11.2% and 14.5%, respectively. The rate decrease compared to the prior year period is primarily due to changes in the mix of earnings among tax jurisdictions. Income from the Company's Swiss subsidiary comprised a substantial portion of the Company's overall foreign mix of income and is taxed at an effective income tax rate of approximately 6%.