The Company’s effective income tax rate for the quarter of fiscal and was and of consolidated earnings before income taxes, respectively. The change in the company’s tax rate for the quarter of fiscal compared to quarter of fiscal was driven by a reduced federal income tax rate as a result of tax legislation and the impact of discrete tax items including the tax benefit of stock options exercises. The company recognized a net benefit related to discrete tax items of million during the quarter of fiscal compared to million net expense during the quarter of fiscal

 

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 Accounting Bulletin (“SAB ) later codified as ASU - , which provides a measurement period of up to year from the Tax Act’s enactment date to complete the accounting for the effects of the Tax Act.

 

We complied with SAB when preparing our quarterly consolidated financial statements for the period ended Reasonable estimates were used in determining several of the components of the impact of the Tax Act, including our fiscal deferred income tax activity and the amount of post- foreign deferred earnings subject to the repatriation transition tax. We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentiallyaffect the measurement of our deferred tax balances and the amount of the repatriation transition tax liability, and ultimately cause us torevise our initial estimates in future periods. In addition, changes in interpretations, assumptions and guidance regarding the Tax Act, aswell as the potential for technical corrections, could have a material impact on our effective tax rate in future periods. material adjustments were made during the period ended to initial estimates for the impact of the Tax Act recorded in fiscal year   The Company has yet elected an accounting policy related to GILTI.