XML 30 R18.htm IDEA: XBRL DOCUMENT

Income Taxes	6 Months Ended
Dec. 31, 2020
Income Taxes
Income Taxes	11. Income Taxes The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. During the three months ended December 31, 2019 and 2020, we recognized discrete tax benefits of $0.7 million and discrete tax expenses of $0.3 million, respectively, related to equity-based compensation under ASU 2016-09 and changes in prior year tax estimates resulting in an effective tax rate of 25.3% and 28.6%, respectively. Excluding the impact of the discrete tax items noted above, our effective tax rate for the three months ended December 31, 2020 was 27.5% as compared to 27.7% in the same prior-year period. During the six months ended December 31, 2019 and 2020, we recognized discrete tax benefits of $6.9 million and discrete tax expenses of $0.1 million, respectively, related to equity-based compensation under ASU 2016-09 and changes in prior year estimates resulting in an effective tax rate of 13.5% and 27.7%, respectively. Excluding the impact of the discrete tax items noted above, our effective tax rate for the six months ended December 31, 2020 was 27.5% as compared to 27.8% in the same prior-year period.

Income Taxes

6 Months Ended

Dec. 31, 2020

11. Income Taxes

The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

During the three months ended December 31, 2019 and 2020, we recognized discrete tax benefits of $0.7 million and discrete tax expenses of $0.3 million, respectively, related to equity-based compensation under ASU 2016-09 and changes in prior year tax estimates resulting in an effective tax rate of 25.3% and 28.6%, respectively. Excluding the impact of the discrete tax items noted above, our effective tax rate for the three months ended December 31, 2020 was 27.5% as compared to 27.7% in the same prior-year period.

During the six months ended December 31, 2019 and 2020, we recognized discrete tax benefits of $6.9 million and discrete tax expenses of $0.1 million, respectively, related to equity-based compensation under ASU 2016-09 and changes in prior year estimates resulting in an effective tax rate of 13.5% and 27.7%, respectively. Excluding the impact of the discrete tax items noted above, our effective tax rate for the six months ended December 31, 2020 was 27.5% as compared to 27.8% in the same prior-year period.

- 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 + Details