Income Taxes

3 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits, and other factors that cannot be predicted with certainty. As such there can be significant volatility in interim tax provisions.

Income tax expense for the three months ended September 30, 2019 was $12.9 million, or 23.8 percent of pre-tax income as compared with $8.8 million, or 21.8 percent of pre-tax income for the three months ended September 30, 2018.

The effective tax rate for the three months ended September 30, 2019 is higher than the prior year period due to losses in certain foreign jurisdictions for which no tax benefit can be recorded as well as a lower tax benefit for employee share-based compensation.