XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
6 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The provision for income taxes for the three and six months ended December 31, 2018 was $14.4 million and $27.0 million compared to $41.4 million and $65.8 million for the three and six months ended December 31, 2017.
The effective tax rate for the three and six months ended December 31, 2018 was 22.4% and 17.6% compared to 40.0% and 37.0% for the three and six months ended December 31, 2017.
The decrease in the effective tax rate for the three and six months ended December 31, 2018, compared to the comparable prior year periods is primarily due to the U.S federal corporate income tax rate change from 35% to 21% under the Tax Act, which resulted in a blended U.S. federal corporate income tax rate of 28.1% for the prior year and a 21% tax rate for the current year. Included in the provision for taxes for the three and six months ended December 31, 2018 is $0.8 million and $7.9 million, respectively, of excess tax benefits (the “ETB”) attributable to stock-based compensation. The ETB recognized for the three and six months ended December 31, 2017 were $1.5 million and $3.0 million, respectively.
In addition, the Company accrued in the comparable prior year period a one-time net expense of approximately $16.1 million to reflect a one-time transition tax on earnings of certain foreign subsidiaries at December 31, 2017, partially offset by a benefit related to the remeasurement of the Company’s net U.S. federal and state deferred tax liabilities. The net $16.1 million one-time expense was adjusted to $15.4 million in the fourth quarter of the prior fiscal year. Pursuant to the enactment of the Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provided the Company with up to one year to finalize accounting for the impacts of the Tax Act. The Company has determined that the ultimate one-time prior year net tax impact from the enactment of the Tax Act was approximately $14.9 million.