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INCOME TAXES
 12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES Income Taxes
The Company’s provision for income taxes was $110,238, $69,777, and $165,614, for the years ended March 31, 2024, 2023, and 2022, respectively. This represents effective tax rates of 28.2%, 21.5%, and 27.4% for the years ended March 31, 2024, 2023, and 2022, respectively.

The provision (benefit) for income taxes on operations for the years ended March 31, 2024, 2023, and 2022 is comprised of the following approximate values:
Year Ended March 31,
202420232022
Current:
Federal$40,838 $66,529 $134,054 
State and local16,116 4,819 58,568 
Foreign32,814 1,875 44,060 
     Subtotal89,768 73,223 236,682 
Deferred:
Federal14,116 1,605 (52,088)
State and local3,498 1,092 (18,348)
Foreign2,856 (6,143)(632)
Subtotal20,470 (3,446)(71,068)
Total$110,238 $69,777 $165,614 

The provision for income taxes on operations for the years ended March 31, 2024, 2023, and 2022 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,
202420232022
Federal income tax provision computed at statutory rate$82,013 21.0 %$68,040 21.0 %$126,826 21.0 %
State and local taxes, net of federal tax effect20,027 5.1 %16,609 5.1 %31,559 5.2 %
Tax impact from foreign operations7,922 2.0 %(5,040)(1.5)%3,990 0.7 %
Nondeductible expenses9,133 2.4 %9,396 2.9 %10,654 1.8 %
Stock compensation(7,468)(1.9)%(8,044)(2.5)%(7,421)(1.2)%
Uncertain tax positions, true-up items, and other(1,389)(0.4)%(11,184)(3.5)%6 — %
Total$110,238 28.2 %$69,777 21.5 %$165,614 27.4 %
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, 2024 and March 31, 2023, comprise the following:
March 31, 2024March 31, 2023
Deferred tax assets:
Deferred compensation expense/accrued bonus$109,416 $115,584 
Allowance for credit losses1,243 1,641 
Accounts receivable and work in progress9,577 9,978 
US foreign tax credits 2,313 2,443 
Operating lease liabilities87,219 81,153 
Non US43,434 31,557 
Other, net6,051 8,735 
Total deferred tax assets259,253 251,091 
Deferred tax asset valuation allowance (12,386)(3,376)
Total deferred tax assets246,867 247,715 
Deferred tax liabilities:
Intangibles(71,575)(70,657)
Operating lease right-of-use assets(69,978)(72,218)
Other, net(22,755)(443)
Total deferred tax liabilities(164,308)(143,318)
Net deferred tax assets$82,559 $104,397 

The Company has various state and foreign net operating losses totaling $51,246. If not utilized, the state net operating loss carryforwards will begin to expire in fourteen years and foreign net operating loss carryforwards will begin to expire in four 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 US foreign tax credit carryforwards as of March 31, 2024 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 $2,313 and $2,443 against these assets for March 31, 2024 and 2023, 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 2029. 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, 2024 and 2023 of $10,072 and $933, respectively. The change in the total valuation allowance was an increase of $9,139 and a decrease of $5,858 during the years ended March 31, 2024 and March 31, 2023, respectively.

We continue to consider the remaining balance of our undistributed foreign earnings to 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 certain additional foreign withholding taxes and/or U.S. federal and state income taxes. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable.

As of March 31, 2024 and March 31, 2023, the Company had recorded liabilities for interest and penalties related to uncertain tax positions in the amounts of $576 and $1,023, respectively. Unrecognized tax positions totaled $15,800 and $14,825 as of March 31, 2024 and March 31, 2023, 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, 2024 and March 31, 2023 is as follows:
March 31, 2024March 31, 2023
Unrecognized tax position at the beginning of the year$14,825 $18,654 
Increase related to prior year tax positions2,233 4,102 
Decrease related to prior year tax positions(1,258)(7,931)
Unrecognized tax position at the end of the year$15,800 $14,825 

The Company believes that it is reasonably possible that a decrease of up to $5.9 million in gross unrecognized income tax positions 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, 2024, all of the federal income tax returns filed since 2021 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 City audit for the years ended March 31, 2016, March 31, 2017, and March 31, 2018.