15.	Income Taxes

The Company recorded an income tax benefit of $1,035,000, or an effective tax rate of 25.0%, and $1,301,000 or an effective tax rate of 20.4%, for the three and nine months ended December 31, 2018, respectively. The effective tax rates for the three and nine months ended December 31, 2018 were impacted by the statute lapses for various uncertain tax positions and return to provision adjustments, and finalization of provisional estimates under Staff Accounting Bulletin (“SAB”) 118. The estimated effective tax rate for the entire year is based on current estimates and any changes to those estimates in future periods could result in an effective tax rate that is materially different from the current estimate.

The Company recorded an income tax expense, as adjusted, of $6,994,000, or an effective tax rate of 156.6% and $15,026,000, or an effective tax rate of 58.0%, for the three and nine months ended December 31, 2017, respectively. The effective tax rates, as adjusted, for these periods were significantly impacted by the enactment of the Tax Cuts and Jobs Act (the “Act”) on December 22, 2017. In addition, the effective tax rates were impacted by valuation allowances recorded in connection with the Company’s July 2017 acquisition of D&V.

The Act reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and created new taxes on certain foreign sourced earnings. During the year ended March 31, 2018, the Company recorded provisional amounts by applying the guidance in SAB 118, as the Company had not yet completed the accounting for the tax effects of enactment of the Act. The Company had recorded a one-time provisional non-cash tax charge of $2,709,000 due to the revaluation of deferred tax assets and liabilities. The one-time transition tax was estimated and recorded as a one-time provisional income tax expense of $530,000 at March 31, 2018.

As the measurement period under SAB 118 ended during the nine months ended December 31, 2018, the Company completed its accounting analysis of the cumulative foreign earnings, transitional tax liability, and non-cash tax charge for deferred revaluation under the Act. The three months ended December 31, 2018 included a reduction of $50,000 to the provisional transition tax amount and a $102,000 increase to non-cash tax charge due to the revaluation of deferred tax assets and liabilities previously reported under SAB 118. Additionally, the Company’s U.S. tax return for the period ended March 31, 2018 was filed and any changes to the tax positions for temporary differences compared to the estimates used resulted in an adjustment of the estimated tax expense recorded as of March 31, 2018. Despite the completion of the Company’s accounting for the Act under SAB 118, many aspects of the law remain unclear and the Company expects ongoing guidance to be issued at both the federal and state levels. The Company will continue to monitor and assess the impact of any new developments.

The Company remains subject to examination for the fiscal years beginning with March 31, 2015. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months.