Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

Income Taxes
3 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our effective income tax, after discrete tax events, was a 29.1% benefit against our loss before provision for taxes and 2.9% of tax expense for the three months ended June 30, 2020 and 2019, respectively. Excluding the discrete items of the impact and the release of reserves for uncertain tax positions, the Company estimates that the effective tax rate will be 30.7% for the fiscal year ending March 31, 2021. The estimated effective income tax rate represents the weighted average of the estimated tax expense over our global income before tax.

On July 20, the IRS released updated rules with regard to Global intangible low-taxed income or ("Gilti tax'). Under the new regulations, Thermon will be able to reduce its Gilti tax under the high tax exception rules. Since the change occurred after June 30, 2020, GAAP guidance requires that the Company implement the impact during the three months ended September 30, 2020. The Gilti tax reduction is retroactive, therefore we expect a discrete reversal of a portion of previously recorded tax on implementation.
        As of June 30, 2020, we have established a long-term liability for uncertain tax positions in the amount of $742. As of June 30, 2020, the tax years for the fiscal years ended March 31, 2015 through March 31, 2020 remain open to examination by the major taxing jurisdictions to which we are subject.