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Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2023
Income Tax Disclosure [Abstract] |
Summary of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income before income taxes were comprised of the following:
|  | Fiscal year ended March 31, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | 117,115 |  |  | $ | 45,259 |  |  | $ | 161,323 |
Foreign |  |  | 51,968 |  |  |  | 19,849 |  |  |  | (3,294) |
Total |  | $ | 169,083 |  |  | $ | 65,108 |  |  | $ | 158,029 |
Summary of Components of Income Tax Expense (Benefit) | The provision for (benefit from) income taxes consisted of the following:
|  | Fiscal year ended March 31, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 35,244 |  |  | $ | 13,558 |  |  | $ | 34,013 |
Foreign |  |  | 18,238 |  |  |  | 5,974 |  |  |  | 2 |
Total |  |  | 53,482 |  |  |  | 19,532 |  |  |  | 34,015 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | (8,660) |  |  |  | (6,173) |  |  |  | 54 |
Foreign |  |  | 2,928 |  |  |  | 836 |  |  |  | (388) |
Total |  |  | (5,732) |  |  |  | (5,337) |  |  |  | (334) |
Provision for income taxes |  | $ | 47,750 |  |  | $ | 14,195 |  |  | $ | 33,681 |
Summary of Effective Income Tax Rate Reconciliation | The reconciliation of the income tax expense (benefit) expected based on domestic statutory income tax rates to the expense (benefit) for income taxes included in the consolidated statements of operations is as follows:
|  | Fiscal year ended March 31, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Income taxes based on domestic statutory rates |  | $ | 35,508 |  |  | $ | 13,673 |  |  | $ | 33,186 |
Effect of tax rate differential |  |  | 7,487 |  |  |  | 2,638 |  |  |  | 342 |
FDII Deduction |  |  | (3,235) |  |  |  | (1,583) |  |  |  | (2,951) |
Foreign disregarded entities |  |  | 11,020 |  |  |  | — |  |  |  | — |
Foreign tax deduction |  |  | (3,659) |  |  |  | — |  |  |  | — |
Amount allocated to Non-controlling interest |  |  | (1,671) |  |  |  | — |  |  |  | — |
Stock-based compensation |  |  | — |  |  |  | (424) |  |  |  | (4) |
State |  |  | 4,535 |  |  |  | 880 |  |  |  | 2,689 |
Guaranteed payment on Series A Preferred Units |  |  | (4,500) |  |  |  | (875) |  |  |  | — |
Other |  |  | 2,265 |  |  |  | (114) |  |  |  | 419 |
Provision for income taxes |  | $ | 47,750 |  |  | $ | 14,195 |  |  | $ | 33,681 |
Summary of Deferred Tax Assets and Liabilities | The components of deferred income taxes are as follows ( in thousands ):
|  | As of March 31, |
|  | 2023 |  |  | 2022 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  | $ | (54) |  |  | $ | (67) |
Intangible assets |  |  | — |  |  |  | (437) |
Others |  |  | (2,688) |  |  |  | (663) |
Total deferred tax liabilities |  |  | (2,742) |  |  |  | (1,167) |
Deferred tax assets: |  |  |  |  |  |  |  |
Fixed assets |  |  | — |  |  |  | 47 |
Stock-based compensation |  |  | 2,222 |  |  |  | 342 |
Deferred revenue |  |  | — |  |  |  | 3,967 |
Warranty reserve |  |  | — |  |  |  | 2,461 |
Accrued professional fees |  |  | — |  |  |  | 2,378 |
Provision for doubtful accounts |  |  | — |  |  |  | 449 |
Net operating loss and other carryforwards |  |  | 5,467 |  |  |  | 5,553 |
Investment in Nextracker LLC |  |  | 249,377 |  |  |  | — |
Others |  |  | 1,598 |  |  |  | 1,367 |
Total deferred tax assets |  |  | 258,664 |  |  |  | 16,564 |
Valuation allowances |  |  | (1,528) |  |  |  | — |
Total deferred tax assets, net of valuation allowances |  |  | 257,136 |  |  |  | 16,564 |
Net deferred tax asset |  | $ | 254,394 |  |  | $ | 15,397 |
The net deferred tax asset is classified as follows: |  |  |  |  |  |  |  |
Long-term asset |  | $ | 254,767 |  |  | $ | 15,828 |
Long-term liability |  |  | (373) |  |  |  | (431) |
Total |  | $ | 254,394 |  |  | $ | 15,397 |
Summary of Operating Loss Carryforwards | These tax losses and other carryforwards will expire at various dates as follows:
Expiration dates of deferred tax assets related to operating losses and other carryforwards |
(In thousands) |  |  |
2024 - 2029 |  | $ | — |
2030 - 2035 |  |  | 437 |
2036 - Post |  |  | — |
Indefinite |  |  | 3,844 |
Total |  | $ | 4,281 |
Summary of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Fiscal year ended March 31, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Balance, beginning of fiscal year |  | $ | 440 |  |  | $ | 465 |  |  | $ | 410 |
Impact from foreign exchange rates fluctuation |  |  | (6) |  |  |  | (25) |  |  |  | 55 |
Balance, end of fiscal year |  | $ | 434 |  |  | $ | 440 |  |  | $ | 465 |

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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