The Company’s effective income tax rate for the quarter of fiscal and was  and ()% of consolidated earnings before income taxes, and ()% and ()% for the months of fiscal and respectively. The change in the Company’s tax rate for the quarter and months of fiscal  compared to quarter and months of fiscal was driven by discrete tax items.

 

The Company recognized total net benefits related to discrete tax items of  million during the quarter and  million during the months of fiscal  U.S. tax reform (as described further below) resulted in  million tax benefit for the quarter and months of fiscal   Share-based compensation excess tax benefit contributed million and million in the quarter and months of respectively.

 

The Company recognized total net benefits related to discrete tax items of million during the quarter and million during the months of fiscal  U.S. tax reform (as described further below) resulted in million tax benefit for the quarter and months of fiscal   This tax benefit was partially 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.

 

On the Tax Cuts and Jobs Act (the “Tax Act”) was enacted, which reduced the U.S. federal corporate tax rate from to required companies to pay a -time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. The Tax Act added many new provisions including changes the deduction for executive compensation, a tax on global intangible low taxed income (“GILTI”), the base erosion anti abuse tax (“BEAT”) and a deduction for foreign derived intangible income (“FDII”). The SEC staff issued Staff A

 

During the quarter, the Company recorded a net discrete benefit of million related to the mandatory deemed repatriation tax calculation which is inclusive of a benefit for a dividends received deduction for certain foreign tax credits offset by an increased expense due to the Company’s refinement of the calculation as the tax return is being prepared as well as increased expense due to interpretation of guidance issued within the quarter.  The additional dividends received deduction is based on our assessment of the treatment under the applicable provisions of the Tax Act as currently written and enacted. If, in the future, Congress or the Department of the Treasury provides legislative or regulatory updates, this could change our assessment of the benefit associated with the dividends received deduction, and we be required to recognize additional tax expense up to the full amount of the  million in the period such updates are issued.

 

Measurement period adjustments recorded during the quarter and months of fiscal related to the mandatory repatriation inclusion and were approximately million, all of which had an impact on the effective rate. The Company is at the end of the measurement period allowed under ASU - but anticipates additional interpretations and clarifications to be issued by the U.S. Treasury Department, which affect future period tax estimates.