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Income Taxes
9 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland.

The income tax provision for the three months ended December 31, 2018 was $9.3 million based on an effective income tax rate of 7.6% of pre-tax income, compared to an income tax provision of $20.0 million based on an effective income tax rate of 19.9% of pre-tax income for the three months ended December 31, 2017. The income tax provision for the nine months ended December 31, 2018 was $10.3 million based on an effective income tax rate of 4.6% of pre-tax income, compared to an income tax provision of $18.7 million based on an effective income tax rate of 9.7% of pre-tax income for the nine months ended December 31, 2017.

The changes in the effective income tax rate for the three and nine months ended December 31, 2018, compared to the same periods ended December 31, 2017, were primarily due to the mix of income and losses in the various tax jurisdictions which the Company operates and the provisional income tax impact from the Tax Act as of December 31, 2017. The Company recorded a provisional income tax charge of $19.9 million from the estimated remeasurement of federal deferred tax assets and liabilities as of December 31, 2017 to reflect the effects of the enacted changes in tax rate and an income tax benefit of $4.1 million from assessment of valuation allowance against tax credits. Furthermore, in the three and nine months ended December 31, 2018, there were discrete tax benefits of $0.9 million and $2.3 million, respectively, from the reversal of uncertain tax positions from the expiration of statutes of limitations. In the same periods ended December 31, 2017, the tax benefits from reversal of uncertain tax positions from the expiration of statutes of limitations were $6.0 million and $7.9 million, respectively.

The Company completed its review of previously recorded provisional income tax amounts related to net deferred tax assets impacted by the Tax Act and concluded that additional information, interpretation and guidance that became available during the twelve-month measurement period did not alter the Company’s application of tax law in remeasuring gross deferred tax assets and related valuation allowance. There were no adjustments deemed necessary in the three and nine months ended December 31, 2018.

As of December 31, 2018 and March 31, 2018, the total amount of unrecognized tax benefits due to uncertain tax positions was $74.6 million and $69.1 million, respectively, all of which would affect the effective income tax rate if recognized.

As of December 31, 2018 and March 31, 2018, the Company had $36.2 million and $35.0 million, respectively, in non-current income taxes payable including interest and penalties, related to the Company's income tax liability for uncertain tax positions.
 
The Company recognizes interest and penalties related to unrecognized tax positions in income tax provision. As of December 31, 2018 and March 31, 2018, the Company had $2.4 million and $2.3 million, respectively, of accrued interest and penalties related to uncertain tax positions.
 
Although the Company has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2019, the Company continues to review its tax positions and provide for or reverse unrecognized tax benefits as issues arise. During the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S. dollar as compared to other currencies. Excluding these factors, uncertain tax positions may decrease by as much as $7.0 million from the lapse of the statutes of limitations in various jurisdictions during the next twelve months.