Income Taxes |
9 Months Ended |
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Nov. 30, 2020 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES
Our effective tax rate for the nine months ended November 30, 2020, was 20.2% of tax expense as compared with 73.0% of tax benefit for the nine months ended November 30, 2019. Our effective tax rate for the three months ended November 30, 2020, was 12.0% of tax expense as compared with 225.3% of tax benefit for the three months ended November 30, 2019.
For the nine months ended November 30, 2020, our effective tax rate approximates the federal statutory rate of 21% as the effective rate of tax benefit from our foreign businesses and the recognition of a net income tax benefit from stock-based compensation award activity was largely offset by the net income tax expense recognized on the net unrealized gain from the changes in fair value of our investments in Canopy.
For the three months ended November 30, 2020, our effective tax rate was lower than the federal statutory rate of 21% primarily due to:
•the removal of valuation allowances due to the net unrealized gain from the changes in fair value of our investments in Canopy; and
•lower effective tax rates from our foreign businesses.
For the nine months and three months ended November 30, 2019, our effective tax rate was higher than the federal statutory rate of 21% primarily due to:
•the recognition of a $547.4 million net income tax benefit resulting from the remeasurement of our deferred tax assets in connection with the September 2019 enactment of tax reform in Switzerland; and
•a higher effective rate of tax benefit from our foreign businesses including the tax benefits recorded on the net unrealized loss from the changes in fair value of our investments in Canopy and the tax benefits recorded on the Canopy equity in earnings (losses) and related activities.
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- References No definition available.
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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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