TAXES

9 Months Ended

Dec. 31, 2023

TAXES.

TAXES

NOTE 5. TAXES

For the three months ended December 31, 2023, the Company’s effective tax rate was 122.6%, compared to 23.2% for the three months ended December 31, 2022. For the nine months ended December 31, 2023, the Company’s effective tax rate was (79.3%), compared to (13.1%) for the nine months ended December 31, 2022. The Company’s negative effective tax rates for the nine months ended December 31, 2023 and 2022 reflect a tax expense on a pretax book loss in those periods. The Company’s positive effective tax rate for the three months ended December 31, 2022 reflects tax benefits on a pretax loss resulting from return-to-provision adjustments recorded in that period.

The Company’s effective tax rate for the three months ended December 31, 2023 was higher than the Company’s statutory tax rate primarily due to taxes on foreign operations, uncertain tax positions and valuation allowances recorded in certain jurisdictions against deferred tax assets that are not more likely than not to be realized. The Company’s effective tax rate for the nine months ended December 31, 2023 was lower than the Company’s statutory tax rate primarily due to taxes on foreign operations and valuation allowances recorded in certain jurisdictions against deferred tax assets that are not more likely than not to be realized.

The Company’s effective tax rate for the three months ended December 31, 2022 differed from the Company’s statutory tax rate primarily due to a benefit recorded during the period resulting from return-to-provision adjustments related to the filing of certain income tax returns. The Company’s effective tax rate for the nine months ended December 31, 2022 was lower than the Company’s statutory tax rate primarily due to taxes on foreign operations and an increase in valuation allowances in certain jurisdictions against deferred tax assets that are not more likely than not to be realized, partially offset by the benefit resulting from return-to-provision adjustments.