Income Taxes

9 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

    The Company operates in the United States and many foreign countries and is subject to the tax laws of many jurisdictions. Changes in tax laws or the interpretation of tax laws can affect the Company’s earnings, as can the resolution of pending and contested tax issues. The Company's consolidated effective income tax rate is affected by a number of factors, including the mix and timing of domestic and foreign earnings, discrete items, and the effect of exchange rate changes on taxes.     

    The consolidated effective income tax rate for the three months and nine months ended December 31, 2021 was 23.4% and 21.0%, respectively. The consolidated effective income tax rate for the three and nine months ended December 31, 2021 was affected by a $1.2 million benefit related to finalizing the prior fiscal year U.S. tax return. The consolidated effective income tax rate for the nine months ended December 31, 2021 was affected by a $1.7 million benefit related to a final tax law ruling at a foreign subsidiary. Without these items, the consolidated effective income tax rate for the three and nine months ended December 31, 2021 would have been approximately 25.5% and 24.3%, respectively.

    The Company's consolidated effective income tax rate for the three and nine months ended December 31, 2020 was 26.5% and 18.6%, respectively. The Company recognized a $2.9 million income tax benefit in the three and nine months ended December 31, 2020 related to amending and finalizing of prior fiscal years' consolidated U.S. income tax returns. The consolidated income tax rate for the nine months ended December 31, 2020 was affected by a $4.4 million net tax benefit for final U.S. tax regulations issued for hybrid dividends paid by foreign subsidiaries. Without these discrete items, the consolidated effective income tax rate for the three and nine months ended December 31, 2020 would have been approximately 31.7% and 29.3%. Additionally, for the nine months ended December 31, 2020, the Company recognized $1.8 million of interest expense related to a settlement of an uncertain tax position at foreign subsidiary.