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Income Taxes | 12 Months Ended
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Mar. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes (Loss) income before income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2023 |  | 2022 |  | 2021
United States | $ | (130,331) |  |  | $ | 236,381 |  |  | $ | 195,796 |
Foreign | 36,416 |  |  | 26,077 |  |  | 8,317 |
Total (loss) income before income taxes | $ | (93,915) |  |  | $ | 262,458 |  |  | $ | 204,113 |
The (benefit) provision for income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 33,475 |  |  | $ | 34,446 |  |  | $ | 11,513 |
State | 3,721 |  |  | 3,961 |  |  | 3,403 |
Foreign | 11,959 |  |  | 8,709 |  |  | 5,849 |
Deferred |  |  |  |  |
Federal | (52,473) |  |  | 12,055 |  |  | 14,430 |
State | (8,201) |  |  | (1,379) |  |  | 4,572 |
Foreign | (90) |  |  | (715) |  |  | (336) |
Total (benefit) provision for income taxes | $ | (11,609) |  |  | $ | 57,077 |  |  | $ | 39,431 |
The principal components of our deferred tax balances are as follows:
| March 31,
(In thousands) | 2023 |  | 2022
Deferred Tax Assets |  |  |
Allowance for credit losses and sales returns | $ | 4,882 |  |  | $ | 4,605 |
Inventory capitalization | 2,508 |  |  | 2,201 |
Inventory reserves | 1,707 |  |  | 1,264 |
Net operating loss carryforwards | — |  |  | 115 |
State income taxes | 7,440 |  |  | 9,661 |
Accrued liabilities | 1,616 |  |  | 2,026 |
Accrued compensation | 3,757 |  |  | 4,597 |
Stock compensation | 4,613 |  |  | 4,548 |
Research and development | 1,429 |  |  | — |
Lease liability | 4,795 |  |  | 6,808 |
Unrealized foreign exchange loss | 673 |  |  | 215 |
Other | 9,450 |  |  | 5,682 |
Total deferred tax assets | $ | 42,870 |  |  | $ | 41,722 |
Deferred Tax Liabilities |  |  |
Property, plant and equipment | $ | (6,874) |  |  | $ | (7,210) |
Intangible assets | (410,219) |  |  | (471,327) |
Right-of-use asset | (4,300) |  |  | (6,239) |
Total deferred tax liabilities | $ | (421,393) |  |  | $ | (484,776) |
Net deferred tax liability | $ | (378,523) |  |  | $ | (443,054) |
The net deferred tax liability shown above is net of $1.9 million of foreign deferred tax assets as of March 31, 2023 and 2022. We had no valuation allowance as of March 31, 2023 and March 31, 2022. A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:
| Year Ended March 31,
| 2023 |  | 2022 |  | 2021
(In thousands) |  |  | % |  |  |  | % |  |  |  | %
Income tax (benefit) provision at statutory rate | $ | (19,722) |  |  | 21.0 |  |  | $ | 55,116 |  |  | 21.0 |  |  | $ | 42,864 |  |  | 21.0 |
Foreign tax provision | 4,168 |  |  | (4.4) |  |  | 2,876 |  |  | 1.1 |  |  | 3,972 |  |  | 1.9 |
State income taxes (benefit), net of federal income tax benefit | (5,300) |  |  | 5.6 |  |  | 1,737 |  |  | 0.7 |  |  | 7,284 |  |  | 3.6 |
Goodwill impairment | 10,232 |  |  | (10.9) |  |  | — |  |  | — |  |  | — |  |  | — |
Research and development | (514) |  |  | 0.5 |  |  | (213) |  |  | (0.1) |  |  | (156) |  |  | (0.1) |
Compensation limitations | 1,483 |  |  | (1.6) |  |  | 1,563 |  |  | 0.6 |  |  | 735 |  |  | 0.4 |
Valuation allowance | — |  |  | — |  |  | — |  |  | — |  |  | (5,441) |  |  | (2.7) |
Foreign tax credit | (1,297) |  |  | 1.4 |  |  | — |  |  | — |  |  | — |  |  | — |
Uncertain tax positions | (91) |  |  | 0.1 |  |  | (369) |  |  | (0.1) |  |  | (7,218) |  |  | (3.5) |
Other | (568) |  |  | 0.7 |  |  | (3,633) |  |  | (1.5) |  |  | (2,609) |  |  | (1.3) |
Total (benefit) provision for income taxes | $ | (11,609) |  |  | 12.4 |  |  | $ | 57,077 |  |  | 21.7 |  |  | $ | 39,431 |  |  | 19.3 |
Uncertain tax liability activity is as follows:
| 2023 |  | 2022 |  | 2021
(In thousands) |  |  |  |  |
Balance – beginning of year | $ | 3,562 |  |  | $ | 4,030 |  |  | $ | 10,369 |
Reductions based on lapse of statute of limitations | (495) |  |  | (585) |  |  | (6,756) |
Payments and other movements | 228 |  |  | 117 |  |  | 417 |
Balance – end of year | $ | 3,295 |  |  | $ | 3,562 |  |  | $ | 4,030 |
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 2023, 2022 or 2021. We reasonably anticipate that uncertain tax positions could decrease in the next year by approximately $0.4 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, 2019 forward.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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