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INCOME TAXES
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES Income Taxes
The Company’s provision for income taxes was $131,624, $110,238, and $69,777, for the years ended March 31, 2025, 2024, and 2023, respectively. This represents effective tax rates of 24.8%, 28.2%, and 21.5% for the years ended March 31, 2025, 2024, and 2023, respectively.

The provision for income taxes on operations for the years ended March 31, 2025, 2024, and 2023 is comprised of the following approximate values:
Year Ended March 31,
202520242023
Current:
Federal$73,724 $40,838 $66,529 
State and local15,065 16,116 4,819 
Foreign43,792 32,814 1,875 
     Subtotal132,581 89,768 73,223 
Deferred:
Federal(7,593)14,116 1,605 
State and local1,114 3,498 1,092 
Foreign5,522 2,856 (6,143)
Subtotal(957)20,470 (3,446)
Total$131,624 $110,238 $69,777 

The provision for income taxes on operations for the years ended March 31, 2025, 2024, and 2023 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,
202520242023
Federal income tax provision computed at statutory rate$111,580 21.0 %$82,013 21.0 %$68,040 21.0 %
State and local taxes, net of federal tax effect21,297 4.0 %20,027 5.1 %16,609 5.1 %
Tax impact from foreign operations12,535 2.4 %7,922 2.0 %(5,040)(1.5)%
Nondeductible expenses14,313 2.7 %9,133 2.4 %9,396 2.9 %
Stock compensation(20,387)(3.8)%(7,468)(1.9)%(8,044)(2.5)%
Uncertain tax positions, true-up items, and other(7,714)(1.5)%(1,389)(0.4)%(11,184)(3.5)%
Total$131,624 24.8 %$110,238 28.2 %$69,777 21.5 %
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, 2025 and March 31, 2024, comprise the following:
March 31, 2025March 31, 2024
Deferred tax assets:
Deferred compensation expense/accrued bonus$125,428 $109,416 
Allowance for credit losses2,246 1,243 
Accounts receivable and work in progress950 9,577 
US foreign tax credits 2,365 2,313 
Operating lease liabilities85,088 87,219 
Non-US40,639 43,434 
Other, net2,431 6,051 
Total deferred tax assets259,147 259,253 
Deferred tax asset valuation allowance (13,415)(12,386)
Total deferred tax assets245,732 246,867 
Deferred tax liabilities:
Intangibles(69,335)(71,575)
Operating lease right-of-use assets(67,901)(69,978)
Other, net(24,504)(22,755)
Total deferred tax liabilities(161,740)(164,308)
Net deferred tax assets$83,992 $82,559 

The Company has various foreign net operating losses totaling $41,707. If not utilized, the foreign net operating loss carryforwards will begin to expire in three 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, 2025 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 $2,365 and $2,313 against these assets for March 31, 2025 and 2024, 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, 2025 and 2024 of $11,051 and $10,072 respectively. The change in the total valuation allowance was an increase of $979 and $9,139 during the years ended March 31, 2025 and March 31, 2024, respectively.

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 earnings is not practicable.

As of March 31, 2025 and March 31, 2024, the Company had recorded liabilities for interest and penalties related to uncertain tax positions in the amounts of $0 and $576, respectively. Unrecognized tax positions totaled $329 and $15,800 as of March 31, 2025 and March 31, 2024, 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. The Company expects $201 of the unrecognized tax position to be recognized within the next 12 months.
A reconciliation of the unrecognized tax position as of March 31, 2025 and March 31, 2024 is as follows:
March 31, 2025March 31, 2024
Unrecognized tax position at the beginning of the year$15,800 $14,825 
Increase related to prior year tax positions— 2,233 
Decrease related to prior year tax positions(15,471)(1,258)
Unrecognized tax position at the end of the year$329 $15,800 

The Company files consolidated federal income tax returns, as well as consolidated and separate returns in state and local jurisdictions. As of March 31, 2025, all of the federal income tax returns filed since 2022 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.