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Income Taxes
 12 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
On December 22, 2017, the TCJA was signed into law. The TCJA, among other things, reduced the U.S. federal corporate tax rate from 35% to 21% and imposed a new minimum tax on GILTI earned by foreign subsidiaries. In July 2020, final regulations were issued for GILTI, which include a high-tax exception for certain income earned by foreign subsidiaries if the foreign tax rate is in excess of 90% of the U.S. corporate tax rate of 21%.

On March 27, 2020, the CARES Act was enacted and signed into law in response to the COVID-19 pandemic. The CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted
taxable income. This modification increased our allowable interest expense deduction and resulted in a lower taxable income for the fiscal year ended March 31, 2021.

Income (loss) before income taxes consists of the following:
Year Ended March 31,
(In thousands)202120202019
United States$195,796 $167,508 $(52,313)
Foreign8,317 23,643 14,258 
$204,113 $191,151 $(38,055)

The provision (benefit) for income taxes consists of the following:
Year Ended March 31,
 (In thousands)202120202019
Current   
Federal$11,513 $24,051 $27,629 
State3,403 2,506 3,156 
Foreign5,849 8,473 7,193 
Deferred   
Federal14,430 14,119 (35,760)
State4,572 (341)(4,101)
Foreign(336)62 (372)
Total provision (benefit) for income taxes$39,431 $48,870 $(2,255)
The principal components of our deferred tax balances are as follows:
March 31,
(In thousands)20212020
Deferred Tax Assets  
Allowance for doubtful accounts and sales returns$4,267 $4,996 
Inventory capitalization1,124 1,168 
Inventory reserves1,119 705 
Net operating loss carryforwards115 115 
State income taxes10,028 8,896 
Accrued liabilities1,078 1,308 
Accrued compensation3,736 4,472 
Stock compensation4,369 4,334 
Foreign tax credit699 5,441 
Lease liability8,132 8,228 
Unrealized foreign exchange loss384 257 
Other5,916 13,191 
Total deferred tax assets$40,967 $53,111 
Deferred Tax Liabilities  
Property, plant and equipment$(7,245)$(7,590)
Intangible assets(458,713)(438,601)
Deferred cumulative catch-up adjustments - revenue recognition adjustments(264)(522)
Right-of-use asset(7,605)(7,876)
Total deferred tax liabilities$(473,827)$(454,589)
Net deferred tax liability before valuation allowance$(432,860)$(401,478)
Valuation allowance— (5,441)
Net deferred tax liability$(432,860)$(406,919)

The net deferred tax liability shown above is net of $1.2 million of foreign deferred tax assets as of March 31, 2021 and $0.9 million of foreign deferred tax assets as of March 31, 2020.

We had no valuation allowance as of March 31, 2021 and a $5.4 million valuation allowance as of March 31, 2020. The decrease in the valuation allowance was primarily due to the final GILTI regulations issued in July 2020, which resulted in the release of the valuation allowance on foreign tax credit carryforwards of $5.4 million.
A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:
 Year Ended March 31,
202120202019
(In thousands) % % %
Income tax provision (benefit) at statutory rate$42,864 21.0 $40,142 21.0 $(7,992)21.0 
Foreign tax provision3,972 1.9 2,498 1.3 2,866 (7.5)
State income taxes, net of federal income tax benefit7,284 3.6 1,606 0.8 (1,710)4.5 
Goodwill impairment— — — — 5,616 (14.8)
R&D(156)(0.1)(320)(0.2)(629)1.7 
Compensation limitations735 0.4 562 0.3 296 (0.8)
Valuation allowance(5,441)(2.7)2,205 1.2 2,627 (6.9)
Gain on sale— — — — 1,312 (3.4)
Uncertain tax position(7,218)(3.5)— — — — 
Other(2,609)(1.3)2,177 1.2 (4,641)12.1 
Total provision (benefit) for income taxes$39,431 19.3 $48,870 25.6 $(2,255)5.9 

Uncertain tax liability activity is as follows:
 202120202019
(In thousands)  
Balance – beginning of year$10,369 $9,874 $10,827 
Additions based on tax positions related to the current year— 495 585 
Reductions based on lapse of statute of limitations(6,756)— (650)
Payments and other movements417 — (888)
Balance – end of year$4,030 $10,369 $9,874 

We recognize interest and penalties related to uncertain tax positions as a component of income tax (benefit) expense. We did not incur any material interest or penalties related to income taxes in 2021, 2020 or 2019. We reasonably anticipate that uncertain tax positions could decrease in the next year by approximately $0.6 million, principally due to the statute of limitation expirations if recognized and would impact the effective tax rate in a future period. 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, 2017 forward.