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Income Taxes
3 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
(9) INCOME TAXES
The provision for income taxes reported for the three months ended June 30, 2017 is based on our projected annual effective tax rate for fiscal year 2018, adjusted for specific items that are required to be recognized in the period in which they are incurred. Our effective tax rate for the three months ended June 30, 2017 was 14.0 percent compared to 20.3 percent for the same period of fiscal year 2017. The effective tax rate for the three months ended June 30, 2017 was reduced, when compared to the comparable period in the prior year, primarily due to the impact of adoption of ASU 2016-09, which required us to recognize $39 million of excess tax benefits as a component of the provision for income taxes (previously excess tax benefits and tax deficiencies were recognized in additional paid-in-capital). We anticipate that the impact of excess tax benefits and tax deficiencies may result in significant fluctuations to our effective tax rate in the future. Excluding excess tax benefits, our effective tax rate would have been 19.2 percent for the three months ended June 30, 2017. When compared to the statutory rate of 35.0 percent, the effective tax rate for the three months ended June 30, 2017 was reduced primarily due to earnings realized in countries that have lower statutory tax rates and the recognition of excess tax benefits from stock-based compensation.
We file income tax returns and are subject to income tax examinations in various jurisdictions with respect to fiscal years after 2008. The timing and potential resolution of income tax examinations is highly uncertain. While we continue to measure our uncertain tax positions, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued. It is reasonably possible that a reduction of up to $55 million of unrecognized tax benefits may occur within the next 12 months, a portion of which would impact our effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements.