INCOME TAXES |
9 Months Ended | |
|---|---|---|
Dec. 31, 2018 | ||
| Income Tax Disclosure [Abstract] | ||
| INCOME TAXES |
NOTE 8: INCOME TAXES The effective income tax rates for the three and nine months ended December 31, 2018 were
(8.5%) and (2.3%), respectively, as compared to 17.3% and 14.0% for the three and nine months ended December 31, 2017, respectively. Income tax provisions for each of these periods reflect expenses for foreign income taxes and state taxes and differed from the federal statutory rate of 21% in fiscal 2019 and 31.5% in fiscal 2018 due primarily to unbenefited losses experienced in jurisdictions with valuation allowances on deferred tax assets as well as the forecasted mix of earnings in domestic and international jurisdictions. The three and nine months ended December 31, 2017 also benefitted from a $2.7 million refundable tax credit resulting from the repeal of the Corporate Alternative Minimum Tax enacted as part of the Tax Cuts and Jobs Act of 2017 and the nine months ended December 31, 2017 benefitted from a $1.6 million reserve release resulting from an audit settlement with the German tax authorities.
As of December 31, 2018, including interest and penalties, the Company had $127.7 million of unrecognized tax benefits, $109.5 million of which, if recognized, would favorably affect the effective tax rate. As of December 31, 2018, the Company had accrued interest and penalties related to these unrecognized tax benefits of $0.9 million. The Company recognizes interest and penalties related to income tax matters in the income tax provision in the condensed consolidated statements of operations and comprehensive loss. As of December 31, 2018, $122.1 million of unrecognized tax benefits were recorded as a contra deferred tax asset in other long-term assets in the condensed consolidated balance sheets and $5.6 million (including interest and penalties) were recorded in other long-term liabilities in the condensed consolidated balance sheets. The Company does not believe it is likely that the unrecognized tax benefits would materially change in the next 12 months. |