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INCOME TAXES
 12 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES Income Taxes
The Company’s provision for income taxes was $165,614, $96,457, and $51,854, for the years ended March 31, 2022, 2021, and 2020, respectively. This represents effective tax rates of 27.4%, 23.6%, and 22.0% for the years ended March 31, 2022, 2021, and 2020, respectively.

The provision (benefit) for income taxes on operations for the years ended March 31, 2022, 2021, and 2020 is comprised of the following approximate values:
Year Ended March 31,
202220212020
Current:
Federal$134,054 $71,832 $39,796 
State and local58,568 27,230 10,217 
Foreign44,060 18,632 11,495 
     Subtotal236,682 117,694 61,508 
Deferred:
Federal(52,088)(16,244)(6,317)
State and local(18,348)(4,543)(2,104)
Foreign(632)(450)(1,233)
Subtotal(71,068)(21,237)(9,654)
Total$165,614 $96,457 $51,854 
The provision for income taxes on operations for the years ended March 31, 2022, 2021, and 2020 is reconciled to the income taxes computed at the statutory federal income tax rate (computed by applying the federal corporate rate of 21% to consolidated operating income before provision for income taxes) as follows:
Year Ended March 31,
202220212020
Federal income tax provision computed at statutory rate$126,826 21.0 %$85,937 21.0 %$49,486 21.0 %
State and local taxes, net of federal tax effect31,559 5.2 %18,877 4.6 %10,819 4.6 %
Tax impact from foreign operations3,990 0.7 %(1,036)(0.2)%(1,083)(0.5)%
Nondeductible expenses10,654 1.8 %6,004 1.5 %4,721 2.0 %
Stock compensation(7,421)(1.2)%(13,349)(3.3)%(7,269)(3.1)%
Uncertain tax positions, true-up items, and other6 — %24 — %(4,820)(2.0)%
Total$165,614 27.4 %$96,457 23.6 %$51,854 22.0 %

Deferred income taxes arise principally from temporary differences between book and tax recognition of income, expenses, and losses relating to financing and other transactions. The deferred income taxes on the accompanying consolidated balance sheets as of March 31, 2022 and March 31, 2021, comprise the following:
March 31, 2022March 31, 2021
Deferred tax assets:
Deferred compensation expense/accrued bonus$126,249 $75,140 
Allowance for credit losses1,612 1,305 
Accounts receivable and work in progress6,814 2,084 
US foreign tax credits 2,400 2,475 
Operating lease liabilities25,947 31,499 
Non US32,374 14,234 
Other, net10,925 1,452 
Total deferred tax assets206,321 128,189 
Deferred tax asset valuation allowance (9,234)(9,783)
Total deferred tax assets197,087 118,406 
Deferred tax liabilities:
Intangibles(72,983)(49,913)
Operating lease right-of-use assets(21,907)(27,856)
Other, net(7,707)(12,358)
Total deferred tax liabilities(102,597)(90,127)
Net deferred tax assets$94,490 $28,279 
The Company has various state and foreign net operating losses totaling $74,690. If not utilized, the state net operating loss carryforwards will begin to expire in six years and foreign net operating loss carryforwards will begin to expire in ten years, although in certain jurisdictions these attributes do not expire. A valuation allowance is required when it is more likely than not that some portion of the deferred tax assets will not be realized. The Company has determined that deferred tax assets related to US foreign tax credits and certain foreign deferred tax assets are not likely to be realized. The Company’s credit carryforwards as of March 31, 2022 were primarily driven as a result of U.S. Tax Reform. The Company assessed the realizability of these foreign tax credits based on currently enacted and proposed legislation issued by the U.S. Department of Treasury and the Internal Revenue Service, and recorded a full valuation allowance of $2,400 and $2,475 against these assets for March 31, 2022 and 2021, respectively. The Company does not expect to utilize these foreign tax credits in the future as the Company does not currently project future foreign source income. These foreign tax credits will expire in various years through 2030. In addition, certain deferred tax assets related to tax deductible goodwill from previous acquisitions and net operating losses generated from these deductions were not more likely than not realizable; therefore, the Company maintained valuation allowances for March 31, 2022 and 2021 of $6,834 and $7,308, respectively. The change in the total valuation allowance was a decrease of $549 and a decrease of $1,314 during the years ended March 31, 2022 and March 31, 2021, respectively.

The Company has historically considered the undistributed earnings of its foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of fiscal 2021. In the first quarter of fiscal 2022, we identified $97,000 of cash in certain foreign jurisdictions in excess of current working capital needs and repatriated the full amount. With the exception of this one-time distribution of historic earnings, the assertion that all undistributed earnings of foreign subsidiaries should be considered indefinitely reinvested remains. Deferred taxes recorded for the distribution were not significant.

We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. Determination of the amount of unrecognized deferred tax liability on these unremitted earning is not practicable.

As of March 31, 2022 and March 31, 2021, the Company had recorded liabilities for interest and penalties related to uncertain tax positions in the amounts of $1,228 and $1,984, net of any future tax benefit of such interest, respectively. Unrecognized tax positions totaled $18,654 and $14,666 as of March 31, 2022 and March 31, 2021, respectively. If the income tax impacts from these tax positions are ultimately realized, such realization would affect the income tax provision and effective tax rate.

A reconciliation of the unrecognized tax position as of March 31, 2022 and March 31, 2021 is as follows:
March 31, 2022March 31, 2021
Unrecognized tax position at the beginning of the year$14,666 $9,947 
Increase related to prior year tax positions10,054 2,979 
Decrease related to prior year tax positions(6,395)— 
Increase related to tax positions taken in the current year329 1,740 
Unrecognized tax position at the end of the year$18,654 $14,666 

The Company believes that it is reasonably possible that a decrease of up to $8.0 million in gross unrecognized income tax benefits for federal and state items may be necessary within the next 12 months. For the remaining uncertain income tax positions, it is difficult at this time to estimate the timing of the resolution.
The Company files consolidated federal income tax returns, as well as consolidated and separate returns in state and local jurisdictions. As of March 31, 2022, all of the federal income tax returns filed since 2019 by the Company are still subject to adjustment upon audit. The Company also files combined and separate income tax returns in many states, which are also open to adjustment. The Company is currently under New York State audit for the years ended March 31, 2017, March 31, 2018, and March 31, 2019. The Company is currently under New York City audit for the years ended March 31, 2016, March 31, 2017, and March 31, 2018.