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INCOME TAXES
6 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company and its subsidiaries are subject to taxation in the U.S. and in various foreign and state jurisdictions. The effective tax rates for the three months ended September 30, 2016 and 2017 were 21.4% and 19.3%, respectively. The effective tax rates for the six months ended September 30, 2016 and 2017 were 22.0% and 7.2%, respectively.

The decrease in the effective tax rates for the three and six months ended September 30, 2017 is due primarily to a shift in geographic mix of taxable income from higher tax jurisdictions to lower tax jurisdictions. The effective tax rate for the six months ended September 30, 2017 further decreased due to the adoption of new guidance related to stock-based compensation.

The Company recorded a correction to the geographic mix of income during the three months ended June 30, 2017 related to Fiscal Year 2017 which reduced income in a high tax jurisdiction and increased income in a low tax jurisdiction. This correction resulted in a reduction to the Company’s effective tax rate by 6.6 percentage points for the six months ended September 30, 2017 as compared to the prior year period. It had no impact on the three months ended September 30, 2017. For additional details regarding this correction refer to Note 1, Basis of Presentation.

The Company adopted new stock-based compensation accounting guidance effective the beginning of Fiscal Year 2018. Excess tax benefits associated with employee equity plans were previously recorded in additional paid-in capital and the adoption of this guidance resulted in a reduction to the Company's effective tax rate by 0.3 and 4.8 percentage points for the three and six months ended September 30, 2017, respectively. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP.

Included in long-term income taxes payable in the condensed consolidated balance sheets as of March 31, 2017 and September 30, 2017 were unrecognized tax benefits of $12.9 million and $13.4 million, respectively, which would favorably impact the effective tax rate in future periods if recognized. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense in the condensed consolidated statements of operations.  The accrued interest related to unrecognized tax benefits was $1.7 million and $1.6 million as of March 31, 2017 and September 30, 2017, respectively.  No penalties have been accrued.

The Company and its subsidiaries are subject to taxation in the U.S. federal and various foreign and state jurisdictions. The Company’s Fiscal Year 2016 federal income tax return is currently under examination by the Internal Revenue Service. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2012.

The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. The timing of any resolution and/or closure of tax examinations is not certain.