INCOME TAXES

9 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Generally, the Company's effective tax rate differs from the statutory tax rate due to state income taxes and US taxation on foreign earnings, which are partially offset by research and development tax credits and the Foreign Derived Intangible Income deduction.

The Company's effective income tax rates were 11.6% and 30.8% for the three months ended December 31, 2019 and 2018, respectively. The effective tax rate for the three months ended December 31, 2019 was lower than the effective rate for the three months ended December 31, 2018, primarily due to a discrete benefit related to the issuance of US regulations in the quarter impacting the Company's estimate of the Base Erosion Anti-Abuse Tax (BEAT).

The Company's effective income tax rates were 47.2% and 20.2% for the nine months ended December 31, 2019 and 2018, respectively. The effective tax rate for the nine months ended December 31, 2019 was higher than the effective rate for the nine months ended December 31, 2018, primarily due to the establishment of U.S. deferred tax liabilities for certain of the Company's foreign subsidiaries making elections in the first quarter to be treated as U.S. branches for federal income tax purposes, stock-based compensation, and a significant reduction in pre-tax losses as compared to the prior year. These items were partially offset by a discrete benefit related to the issuance of US regulations in the quarter impacting the Company's estimate of BEAT.