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Income Taxes | 12 Months Ended
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Mar. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company’s income before income taxes consisted of the following:
| Year Ended March 31, |  |  |  |
| 2020 |  | 2019 |  | 2018
Domestic income before income taxes | $ | 138,537 |  |  | $ | 128,035 |  |  | $ | 138,290 |
Foreign income before income taxes | 2,207 |  |  | 1,522 |  |  | 1,340 |
Total income before income taxes | $ | 140,744 |  |  | $ | 129,557 |  |  | $ | 139,630 |
Components of income tax expense consist of the following:
| Year Ended March 31, |  |  |  |
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 4,885 |  |  | $ | 7,163 |  |  | $ | 8,001 |
State and local | 754 |  |  | 1,269 |  |  | 1,769 |
Foreign | 400 |  |  | 463 |  |  | 580 |
Total current income tax expense | $ | 6,039 |  |  | $ | 8,895 |  |  | $ | 10,350 |
Deferred: |  |  |  |  |
Federal | $ | 6,589 |  |  | $ | 3,654 |  |  | $ | 24,180 |
State and local | 1,315 |  |  | 17,917 |  |  | (496) |
Foreign | 25 |  |  | 94 |  |  | (701) |
Total deferred income tax expense | 7,929 |  |  | 21,665 |  |  | 22,983 |
Total income tax expense | $ | 13,968 |  |  | $ | 30,560 |  |  | $ | 33,333 |
A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows:
| Year Ended March 31, |  |  |  |
| 2020 |  | 2019 |  | 2018
Federal tax at statutory rate |  | 21.0 | % |  | 21.0 | % |  | 31.6 | %
State income taxes, net of federal benefit | 1.7 | % |  | 1.4 | % |  | 1.5 | %
Non-controlling interest |  | (9.8) | % |  | (10.8) | % |  | (19.8) | %
Foreign income taxes |  | — | % |  | — | % |  | (0.4) | %
Valuation allowance | (0.9) | % |  | 1.9 | % |  | (1.6) | %
Tax reform impact | — | % |  | — | % |  | 13.7 | %
Deferred tax asset state apportionment changes | — | % |  | 10.3 | % |  | — | %
Other | (2.1) | % |  | (0.2) | % |  | (1.1) | %
Effective tax rate |  | 9.9 | % |  | 23.6 | % |  | 23.9 | %
The significant components of deferred tax assets and liabilities are as follows:
| Year Ended March 31, |  |
| 2020 |  | 2019
Deferred tax assets: |  |  |
Basis difference in HLA |  | $ | 150,309 |  |  | $ | 126,219 |
Tax Receivable Agreement |  | 24,020 |  |  | 16,652 |
Fixed assets |  | 42 |  |  | 26 |
Net operating loss carryforwards |  | 1,569 |  |  | 1,843 |
Valuation allowance |  | (37,969) |  |  | (37,164) |
State taxes |  | (30) |  |  | 150 |
Total deferred tax assets | $ | 137,941 |  |  | $ | 107,726 |
As of March 31, 2020 and 2019, the Company had net operating loss carryforwards of $6,902 and $7,999 that were generated from certain foreign subsidiaries. These net operating losses can be carried forward indefinitely. As of March 31, 2020 and 2019, it is more likely than not that the tax benefits from certain of these net operating loss carryforwards will not be realized, therefore, a valuation allowance of $768 and $947 has been established, respectively. In connection with the September 2019 Offering and unit exchange, the Company recorded a deferred tax asset in the amount of $37,394, which is net of a valuation allowance of $3,736 related to the portion of tax benefits that it is more likely than not will not be realized. Additionally, in connection with the September 2019 Offering and unit exchange and recording of the deferred tax asset, the Company recorded a payable to related parties pursuant to the tax receivable agreement of $31,481. The Company believes it is more likely than not that the deferred tax assets (except those identified above) will be realized based on the Company’s historic earnings, forecasted income, and the reversal of temporary differences. The net change in the valuation allowance was an increase of $805, which was recorded through additional paid-in-capital and income tax expense. As of March 31, 2020, 2019, and 2018, the Company had no unrecognized tax positions. The Company does not expect any material increase or decrease in its gross unrecognized tax positions during the next twelve months. If and when the Company does record unrecognized tax positions in the future, any interest and penalties related to unrecognized tax positions will be recorded in the income tax expense line in the Consolidated Statements of Income. The Company files income tax returns as required by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company may be subject to examination by federal and certain state and local tax authorities. As of March 31, 2020, the Company’s income tax returns from 2016 remain open and are subject to examination. Tax Receivable Agreement The Company has recorded a liability related to the TRA of $98,956 and $69,636 as of March 31, 2020 and 2019. A payment of $1,952 was made during the year ended March 31, 2020. In the event that the valuation allowance related to tax benefits associated with the tax receivable agreement is released in a future period, an additional estimated payable will be due to the TRA Recipients of $10,589.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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