XML 34 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
INCOME TAXES
6 Months Ended
Sep. 30, 2017
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 17. INCOME TAXES

During the three months ended September 30, 2017 and 2016, our income tax provision was $3.6 million, based on an effective tax rate of 35%, and $6.5 million, based on an effective tax rate of 36%, respectively. The dollar decrease in the income tax provision during the three months ended September 30, 2017, as compared to the same period last year, was attributable to lower pre-tax income. The decrease in the effective tax rate during the three months ended September 30, 2017, as compared to the same period last year, was primarily attributable to the recognition of excess tax benefits as a discrete item in the second quarter of fiscal 2018 pursuant to ASU 2016-09, which we adopted effective the first quarter of fiscal 2018, partially offset by lower federal benefits for qualified production activities during the three months ended September 30, 2017. The adoption of ASU 2016-09 is discussed further in Note 2, “Summary of Significant Accounting Policies.”

During the six months ended September 30, 2017 and 2016, our income tax provision was $7.0 million, based on an effective tax rate of 35%, and $10.4 million, based on an effective tax rate of 36%, respectively. The dollar decrease in the income tax provision during the six months ended September 30, 2017, as compared to the same period last year, was attributable to lower pre-tax income. The decrease in the effective tax rate during the six months ended September 30, 2017, as compared to the same period last year, was primarily attributable to the recognition of excess tax benefits as a discrete item in the six months ended September 30 2017, partially offset by lower federal benefits for qualified production activities during the six months ended September 30, 2017.

We are subject to income taxes in the United States and various foreign jurisdictions. Accordingly, we are subject to a variety of examinations by taxing authorities in these locations. We did not have any unrecognized tax benefits as of September 30, 2017 and March 31, 2017. During the three and six months ended September 30, 2017 and 2016, we did not recognize any interest or penalties related to unrecognized tax benefits. In the third quarter of fiscal 2017, the state of California commenced an examination of our tax returns for fiscal years 2014 and 2015, which was completed in the second quarter of fiscal 2018 and there have not been any proposed assessments as a result of this examination. Our foreign subsidiary income tax returns for fiscal 2013 through 2015 is subject to examination by German tax authorities. The tax audit commenced in the third quarter of fiscal 2018. As of September 30, 2017, there had been no proposed assessments by such authorities and we are unable to estimate the range of possible outcomes at this time.