Company’s effective income tax rate was () % and for the quarter of fiscal and fiscal respectively and () % and for the months of fiscal and fiscal respectively. The changes in the company’s tax rate for the quarter and months of fiscal compared to quarter and months of fiscal are due primarily to recording the items attributable to the new tax legislation in the U.S. as described below. Also included in the effective tax rate is

discrete tax benefit of million and million for the quarter and months of fiscal year for the tax benefit of stock option exercises offset by a net discrete tax expense of million and million for the quarter and months of fiscal related to the revaluation of contingent consideration, which is tax deductible. Discrete tax expense for the quarter and months of fiscal included million of expense related to the revaluation of contingent consideration.

December 22, 2017,

including, but limited to () reducing the U.S. federal corporate tax rate, () requiring a -time transition tax on certain unrepatriated earnings of foreign subsidiaries that electively be paid over years, and () accelerated year expensing of certain capital expenditures. The Tax Act reduces the federal corporate tax rate from  percent to  percent effective Internal Revenue Code Section provides that our fiscal year ended We calculated a blended corporate tax rate of  percent for fiscal year which is based on a proration of the applicable tax rates before and after effective date of the Tax Act. The statutory tax rate of  percent will apply for fiscal and beyond.

2019,

not

1

2

3

  percent to offset the income tax liability (subject to some limitations), () a provision that could limit the amount of deductible interest expense, () the repeal of the domestic production activity deduction, () limitations on the deductibility of certain executive compensation, and () limitations on the utilization of foreign tax credits to reduce the U.S. income tax liability.

No.

118,

118

’s impact. SAB provides a measurement period, which in case should extend beyond year from the Tax Act enactment date, during which a company acting in good faith complete the accounting for the impacts of the Tax Act under ASC Topic In accordance with SAB the Company must reflect the income tax effects of the Tax Act in the reporting period in which the accounting under ASC Topic is complete.

’s accounting for certain income tax effects of the Tax Act is incomplete, the Company can determine a reasonable estimate for those effects and record a provisional estimate in the financial statements in the reporting period in which a reasonable estimate can be determined. If a Company cannot determine a provisional estimate to be included in the financial statements, the Company should continue to apply ASC based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. If a Company is unable to provide a reasonable estimate of the impacts of the Tax Act in a reporting period, a provisional amount must be recorded in the reporting period in which a reasonable estimate can be determined.

net tax benefit of  million related to the Tax Act in the period ending This provisional net benefit primarily consists of a net benefit of  million due to the remeasurement of our deferred tax accounts to reflect the corporate rate reduction impact to our net deferred tax balances and a net expense for the transition tax of  million.

 a blended percent in fiscal year ending and  percent for fiscal year ending and beyond. While we are able to make a reasonable estimate of the impact of the reduction in corporate rate, we are continuing to analyze the temporary differences that existed on the date of enactment, the temporary differences originating in the current fiscal year prior to and the temporary differences we expect will reverse prior to

nsition tax is a tax on the previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries as of In order to determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post- E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings.  E&P is similar to retained earnings of the subsidiary, but requires other adjustments to conform to U.S. tax rules.  We are able to make a reasonable estimate of the transition tax and recorded a provisional transition tax obligation of  million which the

 

Company expects to elect to pay, net of certain tax credit carryforwards, over years beginning in fiscal year million of this liability is recorded as current with the remaining million classified as a long-term liability within our balance sheet. However, we are awaiting further interpretative guidance including information regarding state income tax implications and continuing to gather additional information to more precisely compute the amount of the transition tax. We expect that our estimate will be finalized in advance of the filing of our Form -K.

2019.

740,

  In addition, we are awaiting further interpretive guidance in connection with the computation of the GILTI tax. For these reasons, we are yet able to reasonably estimate the effect of this provision of the Tax Act.

our practice and intention was to reinvest the earnings in our subsidiaries outside of the U.S., and U.S. deferred income taxes or foreign withholding taxes were recorded. As of we continue to assert that we plan to reinvest these earnings. The transition tax noted above will result in the previously untaxed foreign earnings being included in the federal and state fiscal taxable income. We are currently analyzing our global working capital requirements and the potential tax liabilities that would be incurred if the non-U.S. subsidiaries distribute cash to the U.S. parent, which include local country withholding tax and potential U.S. state taxation. Therefore, we are yet able to reasonably estimate the effect of this provision of the Tax Act and have recorded any withholding or state tax liabilities.

to determine if these items would impact the effective tax rate. These provisions include BEAT, eliminating U.S. federal income taxes on dividends from foreign subsidiaries, the new provision that could limit the amount of deductible interest expense, the limitations on the deductibility of certain executive compensation, and state tax implications of this federal tax legislation.