XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.4
INCOME TAXES
9 Months Ended
Dec. 31, 2020
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, foreign withholding taxes, and US taxation on foreign earnings, which are partially offset by research and development tax credits, foreign tax credits and the Foreign Derived Intangible Income deduction.
The Company's effective income tax rates were 3.0% and 11.6% for the three months ended December 31, 2020 and 2019, respectively. The effective tax rate for the three months ended December 31, 2020 differed from the effective tax rate for the three months ended December 31, 2019, primarily related to a significant discrete benefit related to the issuance of U.S. regulations in the three months ended December 21 2019, impacting the Company's previous estimate of BEAT.
The Company's effective income tax rates were 14.9% and 47.2% for the nine months ended December 31, 2020 and 2019, respectively. The effective tax rate for the nine months ended December 31, 2020 differed from the effective tax rate for the nine months ended December 31, 2019, primarily due to the establishment of U.S. deferred tax liabilities for certain of our foreign subsidiaries making elections 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 recorded during the nine months ended December 31, 2019 related to the issuance of U.S. regulations in the prior period impacting the Company's estimate of BEAT.