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Income Taxes | 12 Months Ended
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Mar. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Before Income Taxes. Components of income before income taxes recorded in the consolidated statements of comprehensive income were as follows:
| Years Ended March 31,
| 2023 |  | 2022 |  | 2021
Domestic* | $ | 467,231 |  |  | $ | 396,368 |  |  | $ | 368,328 |
Foreign | 198,851 |  |  | 168,270 |  |  | 133,186 |
Total | $ | 666,082 |  |  | $ | 564,638 |  |  | $ | 501,514 |
*Domestic income before income taxes for the years ended March 31, 2023, 2022, and 2021 is presented net of intercompany dividends (or repatriated cash) of $0, $120,000, and $175,000, respectively. Income Tax Expense. Components of income tax expense (benefit) recorded in the consolidated statements of comprehensive income were as follows:
| Years Ended March 31,
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 115,708 |  |  | $ | 95,012 |  |  | $ | 93,562 |
State | 18,418 |  |  | 22,544 |  |  | 15,595 |
Foreign | 24,853 |  |  | 22,929 |  |  | 17,953 |
Total | 158,979 |  |  | 140,485 |  |  | 127,110 |
Deferred |  |  |  |  |
Federal | 4,830 |  |  | (17,316) |  |  | (6,717) |
State | 382 |  |  | (4,827) |  |  | (633) |
Foreign | (14,931) |  |  | (5,653) |  |  | (821) |
Total | (9,719) |  |  | (27,796) |  |  | (8,171) |
Total | $ | 149,260 |  |  | $ | 112,689 |  |  | $ | 118,939 |
Income Tax Expense Reconciliation. Income tax expense (benefit) differed from that obtained by applying the statutory federal income tax rate to income before income taxes as follows:
| Years Ended March 31,
| 2023 |  | 2022 |  | 2021
Computed expected income taxes | $ | 139,882 |  |  | $ | 118,574 |  |  | $ | 105,318 |
State income taxes, net of federal income tax benefit (1) | 15,881 |  |  | 16,896 |  |  | 16,479 |
Foreign rate differential | (21,420) |  |  | (22,188) |  |  | (15,507) |
Gross unrecognized tax benefits | 20,122 |  |  | (491) |  |  | 7,632 |
Intercompany transfers of assets (1) | (13,072) |  |  | (219) |  |  | (27) |
US tax on foreign earnings | 7,672 |  |  | 4,325 |  |  | 4,252 |
Other (1) | 195 |  |  | (4,208) |  |  | 792 |
Total | $ | 149,260 |  |  | $ | 112,689 |  |  | $ | 118,939 |
(1) Certain reclassifications have been made in the prior periods presented to conform with the current period presentation. Deferred Taxes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows:
| As of March 31,
| 2023 |  | 2022
Deferred tax assets |  |  |
Amortization of intangible assets | $ | 16,788 |  |  | $ | 4,828 |
Operating lease liabilities | 38,673 |  |  | 37,020 |
Uniform capitalization adjustment to inventory | 13,823 |  |  | 11,996 |
Reserves and accruals (1) | 48,949 |  |  | 41,894 |
Net operating loss carry-forwards | 3,477 |  |  | 1,802 |
Deferred revenue | 7,924 |  |  | 22,074 |
Other (1) | 1,070 |  |  | 2,024 |
Gross deferred tax assets | 130,704 |  |  | 121,638 |
| As of March 31,
| 2023 |  | 2022
Valuation allowances | (1,224) |  |  | (1,206) |
Total | 129,480 |  |  | 120,432 |
Deferred tax liabilities |  |  |
Prepaid expenses | (6,930) |  |  | (5,460) |
Operating lease assets | (31,250) |  |  | (28,831) |
Depreciation of property and equipment | (18,708) |  |  | (21,924) |
Total | (56,888) |  |  | (56,215) |
Deferred tax assets, net | $ | 72,592 |  |  | $ | 64,217 |
(1) Certain reclassifications have been made in the prior periods presented to conform with the current period presentation. The deferred tax assets are currently expected to be realized between fiscal years 2024 and 2031. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. The Company’s deferred tax valuation allowances are primarily the result of foreign losses in jurisdictions with limited future profitability. US Taxation of Foreign Earnings. The Company is subject to US taxation of its foreign subsidiary earnings, which is considered global intangible low-taxed income, as well as limitations on the deductions of executive compensation, which are included in income tax expense in the consolidated statements of comprehensive income for the periods presented above. As of March 31, 2023, the Company has $523,957 of undistributed earnings from its non-US subsidiaries, of which $299,114 is held as cash and cash equivalents, a portion of which may be subject to additional foreign withholding taxes if it were to be repatriated. As of March 31, 2023, the Company has $13,477 of accumulated earnings from its non-US subsidiaries for which no US federal or state income taxes have been paid. The Company currently anticipates repatriating current and future unremitted earnings of non-US subsidiaries, to the extent they have been and will be subject to US income tax, as long as such cash is not required to fund ongoing foreign operations. Due to the complexities in the laws of foreign jurisdictions, it is not practicable to estimate the amount of foreign withholding taxes associated with such unremitted earnings. No intercompany dividends were declared by the Company from a foreign subsidiary with related foreign withholding tax requirements during the year ended March 31, 2023. Unrecognized Tax Benefits. When tax returns are filed, some positions taken are subject to uncertainty about the merits of the position taken or the amount that would be ultimately sustained upon examination. The benefit of a tax position is recorded in the consolidated financial statements in the period during which the Company believes it is more likely than not that the position will be sustained upon examination by taxing authorities. The recognition threshold is measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement. The portion of the benefit that exceeds the amount measured, as described above, is recorded as a liability for unrecognized tax benefits, along with any associated interest and penalties, in the consolidated balance sheets. A reconciliation of the beginning and ending amounts of total gross unrecognized tax benefits are as follows:
Balance, March 31, 2020 | $ | 17,638 |
Gross increase related to current year tax positions | 2,242 |
Gross increase related to prior year tax positions | 8,566 |
Settlements | (1,215) |
Lapse of statute of limitations | (1,961) |
Balance, March 31, 2021 | 25,270 |
Gross increase related to current year tax positions | 2,520 |
Gross increase related to prior year tax positions | 2,750 |
Gross decrease related to prior year tax positions | (243) |
Settlements | (795) |
Lapse of statute of limitations | (4,723) |
Balance, March 31, 2022 | 24,779 |
Gross increase related to current year tax positions | 6,865 |
Gross increase related to prior year tax positions | 16,243 |
Gross decrease related to prior year tax positions | (456) |
Lapse of statute of limitations | (2,530) |
Balance, March 31, 2023 | $ | 44,901 |
Total gross unrecognized tax benefits recorded in the consolidated balance sheets are as follows:
| As of March 31,
| 2023 |  | 2022
Long-term asset |  |  |
Deferred tax assets, net | $ | 3,145 |  |  | $ | — |
Current liability |  |  |
Income tax payable | 1,829 |  |  | — |
Long-term liability |  |  |
Income tax liability | 39,927 |  |  | 24,779 |
Total | $ | 44,901 |  |  | $ | 24,779 |
As of March 31, 2023, and 2022, the Company has accrued $5,828 and $4,722 for the payment of interest and penalties, respectively, in income tax liability in the consolidated balance sheets. During the years ended March 31, 2023, 2022, and 2021, the Company recorded $1,106, $(60), and $1,151, respectively, of interest and penalties as an increase or (decrease) to interest expense in the consolidated statements of comprehensive income. Net unrecognized tax benefits are defined as gross unrecognized tax benefits, less federal benefit for state income taxes, related to uncertain tax positions taken in the Company’s income tax return that would impact the Company’s effective tax rate, if recognized. Management believes it is reasonably possible that the amount of net unrecognized tax benefits, as well as associated interest and penalties, may decrease during the next 12 months by $7,917, which includes amounts relating to expirations of statute of limitations and settlements of various tax matters. Of this amount, $6,929 would result in an income tax benefit for the Company and $988 would result in a decrease to interest expense in the consolidated statements of comprehensive income. The Company has on-going income tax examinations in various state and foreign tax jurisdictions and regularly assesses tax positions taken in years open to examination. The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. With few exceptions, the Company is no longer subject to US federal, state, local, or foreign income tax examinations by tax authorities before fiscal year 2019. Although the Company believes its tax estimates are reasonable and prepares its tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates or from its historical income tax provisions and accruals. The results of an audit or litigation could have a material impact on results of operations or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, or interest assessments. However, management does not currently expect these audits and inquiries to have a material impact on the Company’s consolidated financial statements.

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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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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