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Income Taxes | 12 Months Ended
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Mar. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Act"). The Tax Act represents significant U.S. federal tax reform legislation that includes a permanent reduction to the U.S. federal corporate income tax rate. The permanent reduction to the federal corporate income tax rate resulted in a one-time gain of $267.0 million related to the value of our deferred tax liabilities and a gain of $3.2 million related to the lower blended tax rate on our current year earnings, resulting in a net gain of $270.2 million. Additionally, the tax reform legislation subjects certain of our cumulative foreign earnings and profits to U.S. income taxes through a deemed repatriation, which resulted in a charge of $1.9 million during 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transition impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. The U.S. Securities and Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. We currently anticipate finalizing and recording any resulting adjustments by the end of the measurement period. Income before income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2018 |  | 2017 |  | 2016
United States | $ | 84,435 |  |  | $ | 93,582 |  |  | $ | 142,253 |
Foreign | 22,651 |  |  | 17,268 |  |  | 14,932 |
| $ | 107,086 |  |  | $ | 110,850 |  |  | $ | 157,185 |
The provision for income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2018 |  | 2017 |  | 2016
Current |  |  |  |  |
Federal | $ | 31,327 |  |  | $ | 40,183 |  |  | $ | 6,080 |
State | 2,686 |  |  | 2,808 |  |  | 1,171 |
Foreign | 5,588 |  |  | 4,242 |  |  | 3,905 |
Deferred |  |  |  |  |  |  |
Federal | (270,796 | ) |  | (5,421 | ) |  | 44,787 |
State | (1,240 | ) |  | (163 | ) |  | 1,678 |
Foreign | (49 | ) |  | (194 | ) |  | (343 | )
Total (benefit) provision for income taxes | $ | (232,484 | ) |  | $ | 41,455 |  |  | $ | 57,278 |
The principal components of our deferred tax balances are as follows:
| March 31,
(In thousands) | 2018 |  | 2017
Deferred Tax Assets |  |  |
Allowance for doubtful accounts and sales returns | $ | 2,806 |  |  | $ | 5,280 |
Inventory capitalization | 1,176 |  |  | 1,881 |
Inventory reserves | 540 |  |  | 1,880 |
Net operating loss carryforwards | 609 |  |  | 609 |
State income taxes | 10,154 |  |  | 17,727 |
Accrued liabilities | 2,210 |  |  | 2,174 |
Accrued compensation | 4,992 |  |  | 9,574 |
Stock compensation | 5,038 |  |  | 5,790 |
Other | 4,975 |  |  | 7,925 |
Total deferred tax assets | $ | 32,500 |  |  | $ | 52,840 |
Deferred Tax Liabilities |  |  |  |
Property, plant and equipment | $ | (6,032 | ) |  | $ | (9,157 | )
Intangible assets | (467,388 | ) |  | (754,322 | )
Total deferred tax liabilities | $ | (473,420 | ) |  | $ | (763,479 | )
Net deferred tax liability before valuation allowance | $ | (440,920 | ) |  | $ | (710,639 | )
Valuation allowance | (609 | ) |  | (3,437 | )
Net deferred tax liability | $ | (441,529 | ) |  | $ | (714,076 | )
The net deferred tax liability shown above is net of $1.0 million of long-term deferred tax assets as of March 31, 2018 and $1.0 million of long-term deferred tax assets as of March 31, 2017. At March 31, 2018 and 2017, we have a valuation allowance of $0.6 million and $3.4 million, respectively, related to certain deferred tax assets acquired from Fleet that we have concluded are not more likely than not to be realized. The decrease in the valuation allowance related to the reclassification of $2.8 million into our uncertain tax liability. A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:
| Year Ended March 31,
| 2018 |  | 2017 |  | 2016
(In thousands) |  |  | % |  |  |  |  | % |  |  |  |  | % |
Income tax provision at statutory rate | $ | 37,480 |  |  | 35.0 |  |  | $ | 38,798 |  |  | 35.0 |  |  | $ | 55,015 |  |  | 35.0 |
Foreign tax benefit | (2,084 | ) |  | (1.9 | ) |  | (2,322 | ) |  | (2.1 | ) |  | (2,894 | ) |  | (1.8 | )
State income taxes, net of federal income tax benefit | 1,414 |  |  | 1.3 |  |  | 1,820 |  |  | 1.7 |  |  | 3,284 |  |  | 2.0 |
Impact of tax legislation | (268,244 | ) |  | (250.5 | ) |  | — |  |  | — |  |  | — |  |  | — |
Goodwill adjustment for sale of asset | — |  |  | — |  |  | 3,208 |  |  | 2.9 |  |  | — |  |  | — |
Nondeductible transaction costs | — |  |  | — |  |  | 686 |  |  | 0.6 |  |  | 1,071 |  |  | 0.7 |
Nondeductible compensation | — |  |  | — |  |  | 342 |  |  | 0.3 |  |  | 758 |  |  | 0.5 |
Other | (1,050 | ) |  | (1.0 | ) |  | (1,077 | ) |  | (1.0 | ) |  | 44 |  |  | — |
Total (benefit) provision for income taxes | $ | (232,484 | ) |  | (217.1 | ) |  | $ | 41,455 |  |  | 37.4 |  |  | $ | 57,278 |  |  | 36.4 |
Uncertain tax liability activity is as follows:
| 2018 |  | 2017 |  | 2016
(In thousands) |  |  |  |  |
Balance – beginning of year | $ | 3,651 |  |  | $ | 4,084 |  |  | $ | 3,420 |
Additions based on tax positions related to the current year | 7,286 |  |  | 583 |  |  | 664 |
Reductions based on lapse of statute of limitations | (110 | ) |  | (1,016 | ) |  | — |
Balance – end of year | $ | 10,827 |  |  | $ | 3,651 |  |  | $ | 4,084 |
We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. We did not incur any material interest or penalties related to income taxes in 2016, 2017 or 2018. The amount of unrecognized tax benefits at March 31, 2018, 2017, and 2016 was $10.8 million, $3.7 million, and $4.1 million, respectively, which would reduce the effective tax rate by 10.1%, 3.3%, and 2.6%, respectively, if recognized. We do not anticipate any events or circumstances that would cause a significant change to these uncertainties during the ensuing year. We are subject to taxation in the United States and various state and foreign jurisdictions, and we are generally open to examination from the year ended March 31, 2015 forward. Pursuant to The Tax Act, we recognized a tax liability on any unrepatriated foreign earnings generated through December 31, 2017. Any future foreign earnings may be eligible for the dividends received deduction. As a result, the Company no longer maintains an assertion that any of its foreign earnings are indefinitely reinvested. Consequently, the Company has recorded the U.S. and local country tax effects of repatriating any unremitted foreign earnings.

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