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Income Taxes | 9 Months Ended
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Dec. 31, 2019
Income Taxes [Abstract] |
Income Taxes | Note 8: Income Taxes The Company’s effective tax rate for the three months ended December 31, 2019 and 2018 was 63.0 percent and 32.0 percent, respectively. The Company’s effective tax rate for the nine months ended December 31, 2019 and 2018 was 65.4 percent and (13.2) percent, respectively. The effective tax rates for the fiscal 2020 periods were negatively impacted by a net income tax charge totaling $2.7 million recorded during the third quarter of fiscal 2020 as a result of legal entity restructuring completed in preparation of a potential sale of the automotive business. The effective tax rates for the fiscal 2019 periods were impacted by adjustments related to the Company’s accounting for the Tax Cuts and Jobs Act (the “Tax Act”), which resulted in income tax charges totaling $3.1 million during the third quarter of fiscal 2019 and income tax benefits totaling $7.7 million during the first nine months of fiscal 2019. In addition, the effective tax rates for the fiscal 2019 periods were favorably impacted by income tax benefits related to the recognition of tax assets for foreign tax credits and a manufacturing deduction in the U.S. The recognition of these tax assets resulted in tax benefits of $2.5 million and $17.0 million in the three and nine months ended December 31, 2018, respectively. Compared with the prior year, the Company’s effective tax rate for fiscal 2020 was positively impacted by both the global intangible low taxed income (“GILTI”) provision of the Tax Act and an income tax benefit from the recognition of a tax incentive in Italy and was negatively impacted by changes in the valuation allowances in certain jurisdictions. During the third quarter of fiscal 2020, the Company recorded a valuation allowance of $3.0 million on certain U.S. deferred tax assets after determining it was more likely than not the deferred tax assets would not be realized. As of December 31, 2019, valuation allowances against deferred tax assets in certain foreign jurisdictions totaled $27.8 million and valuation allowances against certain U.S. deferred tax assets totaled $10.3 million, as it is more likely than not these assets will not be realized based upon historical financial results and certain other factors. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions until the need for a valuation allowance is eliminated. The need for a valuation allowance is eliminated when the Company determines it is more likely than not the deferred tax assets will be realized. Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate. Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company records the tax impacts of certain significant, unusual or infrequently occurring items in the period in which they occur. The Company excluded the impact of its operations in certain foreign locations from the overall effective tax rate methodology and recorded them discretely based upon year-to-date results because the Company anticipates net operating losses for the full fiscal year in these jurisdictions. The Company does not anticipate a significant change in unrecognized tax benefits during the remainder of fiscal 2020.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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