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Income Taxes | 12 Months Ended
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Mar. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 9 — Income Taxes The components of (loss) income before income taxes by jurisdiction are as follows:
|  | Fiscal Years Ended |
|  | March 31, 2022 |  |  | March 31, 2021 |  |  | March 31, 2020 |
|  | (In thousands) |
United States |  | $ | 2,222 |  |  | $ | 48,443 |  |  | $ | 27,000 |
Foreign |  |  | (18,661 | ) |  |  | (22,457 | ) |  |  | (25,572 | )
|  | $ | (16,439 | ) |  | $ | 25,986 |  |  | $ | 1,428 |
The benefit from (provision for) income taxes includes the following:
|  | Fiscal Years Ended |
|  | March 31, 2022 |  |  | March 31, 2021 |  |  | March 31, 2020 |
|  | (In thousands) |
Current tax provision |  |  |  |  |  |  |  |  |
Federal |  | $ | (7,097 | ) |  | $ | (8,573 | ) |  | $ | (5,935 | )
State |  |  | (2,041 | ) |  |  | (3,386 | ) |  |  | (1,465 | )
Foreign |  |  | (4,042 | ) |  |  | 449 |  |  |  | (327 | )
|  |  | (13,180 | ) |  |  | (11,510 | ) |  |  | (7,727 | )
Deferred tax benefit |  |  |  |  |  |  |  |  |
Federal |  |  | 12,961 |  |  |  | 708 |  |  |  | 9,889 |
State |  |  | 11,865 |  |  |  | 823 |  |  |  | 5,797 |
Foreign |  |  | 2,591 |  |  |  | 538 |  |  |  | (44 | )
|  |  | 27,417 |  |  |  | 2,069 |  |  |  | 15,642 |
Total benefit from (provision for) income taxes |  | $ | 14,237 |  |  | $ | (9,441 | ) |  | $ | 7,915 |
Significant components of the Company’s net deferred tax assets are as follows:
|  | As of |
|  | March 31, 2022 |  |  | March 31, 2021 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 251,276 |  |  | $ | 187,900 |
Tax credit carryforwards |  |  | 299,165 |  |  |  | 272,126 |
Operating lease liabilities |  |  | 93,580 |  |  |  | 88,259 |
Deferred revenue |  |  | 21,546 |  |  |  | 21,345 |
Other |  |  | 99,074 |  |  |  | 82,222 |
Valuation allowance |  |  | (78,071 | ) |  |  | (47,076 | )
Total deferred tax assets |  |  | 686,570 |  |  |  | 604,776 |
Deferred tax liabilities: |  |  |  |  |  |
Intangible assets |  |  | (119,299 | ) |  |  | (71,335 | )
Property, equipment and satellites |  |  | (163,560 | ) |  |  | (142,899 | )
Operating lease assets |  |  | (87,677 | ) |  |  | (83,065 | )
Other |  |  | (28,261 | ) |  |  | (34,208 | )
Total deferred tax liabilities |  |  | (398,797 | ) |  |  | (331,507 | )
Net deferred tax assets |  | $ | 287,773 |  |  | $ | 273,269 |
A reconciliation of the benefit from (provision for) income taxes to the amount computed by applying the statutory federal income tax rate to (loss) income before income taxes is as follows:
|  | Fiscal Years Ended |
|  | March 31, 2022 |  |  | March 31, 2021 |  |  | March 31, 2020 |
|  | (In thousands) |
Tax benefit (provision) at federal statutory rate |  | $ | 3,455 |  |  | $ | (5,457 | ) |  | $ | (300 | )
State tax provision, net of federal benefit |  |  | (653 | ) |  |  | (5,067 | ) |  |  | (1,093 | )
Tax credits, net of valuation allowance |  |  | 27,052 |  |  |  | 24,272 |  |  |  | 25,153 |
Non-deductible compensation |  |  | (5,771 | ) |  |  | (5,728 | ) |  |  | (7,150 | )
Non-deductible transaction costs |  |  | (1,361 | ) |  | — |  |  | — |
Non-deductible meals and entertainment |  |  | (337 | ) |  |  | (386 | ) |  |  | (1,075 | )
Stock-based compensation |  |  | (7,569 | ) |  |  | (9,901 | ) |  |  | 780 |
Change in state effective tax rate |  |  | 539 |  |  |  | (2,360 | ) |  |  | (14 | )
Foreign effective tax rate differential, net of valuation allowance |  |  | (6,201 | ) |  |  | (3,046 | ) |  |  | (5,707 | )
Unremitted subsidiary gains |  |  | (1,565 | ) |  |  | (1,682 | ) |  |  | (2,742 | )
Change to indefinite reinvestment assertion (EBI) |  |  | 8,071 |  |  | — |  |  | — |
Change in federal tax rate due to 2020 CARES Act |  | — |  |  | — |  |  |  | 567 |
Other |  |  | (1,423 | ) |  |  | (86 | ) |  |  | (504 | )
Total benefit from (provision for) income taxes |  | $ | 14,237 |  |  | $ | (9,441 | ) |  | $ | 7,915 |
As of March 31, 2022, the Company had federal and state research & development (R&D) tax credit carryforwards of $242.9 million and $192.8 million, respectively, which begin to expire in fiscal year 2026 and fiscal year 2023, respectively. As of March 31, 2022, the Company had federal and state net operating loss carryforwards of $854.7 million and $546.5 million, respectively, both of which begin to expire in fiscal year 2023. In accordance with the authoritative guidance for income taxes (ASC 740), net deferred tax assets are reduced by a valuation allowance if, based on all the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Future realization of existing deferred tax assets ultimately depends on future profitability and the existence of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within the carryforward period available under tax law. In the event that the Company’s estimate of taxable income is less than that required to utilize the full amount of any deferred tax asset, a valuation allowance is established, which would cause a decrease to income in the period such determination is made. A valuation allowance of $78.1 million at March 31, 2022 and $47.1 million at March 31, 2021 has been established relating to state and foreign net operating loss carryforwards, state R&D tax credit carryforwards, and foreign tax credit carryforwards that, based on management’s estimate of future taxable income attributable to such jurisdictions and generation of additional research credits, are considered more likely than not to expire unused. The following table summarizes the activity related to the Company’s unrecognized tax benefits:
|  | As of |
|  | March 31, 2022 |  |  | March 31, 2021 |  |  | March 31, 2020 |
|  | (In thousands) |
Balance, beginning of fiscal year |  | $ | 92,962 |  |  | $ | 80,591 |  |  | $ | 68,156 |
Increase (decrease) related to prior year tax positions |  |  | 7,486 |  |  |  | (828 | ) |  |  | (949 | )
Increases related to current year tax positions |  |  | 12,358 |  |  |  | 13,199 |  |  |  | 13,384 |
Balance, end of fiscal year |  | $ | 112,806 |  |  | $ | 92,962 |  |  | $ | 80,591 |
Of the total unrecognized tax benefits at March 31, 2022, $102.5 million would reduce the Company’s annual effective tax rate if recognized, subject to valuation allowance consideration. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. As of March 31, 2022, the Company has accrued interest and penalties of approximately $2.0 million. The Company recognized a tax benefit of $1.2 million for reductions of interest and penalties in income tax expense for the year ended March 31, 2022. No interest or penalties were accrued as of March 31, 2021. In the next 12 months it is reasonably possible that the amount of unrecognized tax benefits will not change significantly. The Company is subject to periodic audits by domestic and foreign tax authorities. By statute, the Company’s U.S. federal and state income tax returns are subject to examination by the tax authorities for fiscal years 2019 and thereafter. Additionally, net operating loss and R&D tax credit carryovers that were generated in prior years may also be subject to examination. With few exceptions, fiscal years 2018 and thereafter remain open to examination by foreign tax authorities. The Company believes that it has appropriate support for the income tax positions taken on its tax returns and its accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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