Income Taxes |
3 Months Ended |
|---|---|
Jun. 30, 2018 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
On December 22, 2017, the United States enacted significant changes to U.S. tax law following the passage and signing of H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Act”) (previously known as “The Tax Cuts and Jobs Act”). The Tax Act included significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21%, a one-time repatriation tax on deferred foreign income (“Transition Tax”), deductions, credits and business-related exclusions.
Our global anticipated annual effective income tax rate before discrete events was 27% and 25% for the three months ended June 30, 2018 and June 30, 2017, respectively. This estimate is based on a forecast of earnings in all of our jurisdictions. The effective income tax rate represents the weighted average of the estimated tax expense over our global income before tax.
Within the calculation of our estimated effective tax rate for the year ended March 31, 2018 as well as for the three months ended June 30, 2018, we have used assumptions and estimates that may change as a result of future guidance, interpretation, and rule-making from the Internal Revenue Service, the SEC, and the Financial Accounting Standards Board and/or various other taxing jurisdictions. The estimate for the year ended March 31, 2018 included a Transition Tax of $5,126 that will be paid over eight years. As of June 30, 2018, our final estimate of the Transition Tax remains pending and will be completed before December 15, 2018 with the completion of the U.S. tax return for the year ended March 31, 2018. Provisions of the Tax Act include additional U.S. taxes applicable to our foreign operations such as the global intangible low taxed income (“GILTI”) tax. At June 30, 2018, the regulations for GILTI tax have not been released by the U.S. Treasury. We are currently in the process of accessing the impact of the GILTI tax within our global operations and have made estimates of the impact. Future adjustments to the estimates will be recorded as adjustments to income tax expense in the period in which those adjustments become estimable and/or are finalized.
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