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Income Taxes
9 Months Ended
Dec. 31, 2016
Income Taxes [Abstract]  
Income Taxes
Note 8: Income Taxes

For the three months ended December 31, 2016 and 2015, the Company’s effective income tax rate was (58.3) percent and 22.6 percent, respectively.  For the nine months ended December 31, 2016 and 2015, the Company’s effective income tax rate was 16.0 percent and 43.2 percent, respectively.

The most significant factors impacting the effective tax rate for the three and nine months ended December 31, 2016, as compared with the prior-year periods, were changes in the valuation allowance related to certain foreign jurisdictions and changes in the mix of foreign and domestic earnings.  At December 31, 2016, valuation allowances against deferred tax assets in certain foreign jurisdictions totaled $42.4 million and valuation allowances against certain U.S. deferred tax assets totaled $5.4 million, as it is more likely than not these assets will not be realized based upon historical financial results.  The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions until the need for a valuation allowance is eliminated.  The need for a valuation allowance is eliminated when the Company determines it is more likely than not the deferred tax assets will be realized.  The Company may release a portion (approximately $6.0 million) of its existing valuation allowance in a foreign jurisdiction in the fourth quarter of fiscal 2017 or in fiscal 2018, if the Company determines that it is more likely than not the deferred tax assets will be realized.
                                          
Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate.  Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company records the tax impacts of certain significant, unusual or infrequently occurring items in the period in which they occur.  In fiscal 2016, the Company considered the pension settlement losses (see Note 4 for additional information) to be significant and infrequent; therefore, for the three and nine months ending December 31, 2015 it recorded discrete tax benefits from these losses of $0.5 million and $15.7 million, respectively.  Additionally, the Company excluded the impact of its operations in certain foreign locations from the overall effective tax rate methodology and recorded them discretely based upon year-to-date results because the Company anticipates net operating losses for the full fiscal year in these jurisdictions.  In connection with the acquisition of Luvata HTS (see Note 2 for additional information), the Company recorded a preliminary estimate of $6.9 million for gross unrecognized tax benefits, including interest and penalties, which if recognized would impact the effective tax rate.  Other than for any adjustments to finalize the fair value of assets and liabilities acquired in the acquisition of Luvata HTS, the Company does not anticipate a significant change in unrecognized tax benefits during the next twelve months.