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Income Taxes
6 Months Ended
Sep. 30, 2018
Income Taxes [Abstract]  
Income Taxes
14. Income Taxes

The Company recorded income tax expense for the three months ended September 30, 2018 and 2017, of $1,181,000, or an effective tax rate of 25.2%, and $3,598,000, or an effective tax rate of 39.1%, respectively. The Company recorded an income tax benefit of $266,000, or an effective tax rate of 11.8%, for the six months ended September 30, 2018 compared to income tax expense for the six months ended September 30, 2017 of $8,032,000, or an effective tax rate of 37.5%. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted into law, which changed various corporate income tax provisions within the existing Internal Revenue Code. The Tax Reform Act, among other things, lowered the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries.

U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result, the Company recorded provisional amounts due to the revaluation of deferred tax assets and liabilities and the transition tax on deemed repatriation of accumulated foreign income during fiscal 2018. Both of these tax charges represent provisional amounts and the Company’s current best estimates. Any adjustments recorded to the provisional amounts will be included as an adjustment to tax expense. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance.

The Company remains subject to examination for the fiscal years ended March 31, 2018, 2017, 2016, and 2015. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months.