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Income Taxes | 12 Months Ended
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Mar. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income (loss) before income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2024 |  | 2023 |  | 2022
United States | $ | 239,405 |  |  | $ | (130,331) |  |  | $ | 236,381 |
Foreign | 36,620 |  |  | 36,416 |  |  | 26,077 |
Total income (loss) before income taxes | $ | 276,025 |  |  | $ | (93,915) |  |  | $ | 262,458 |
The provision (benefit) for income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2024 |  | 2023 |  | 2022
Current |  |  |  |  |
Federal | $ | 28,302 |  |  | $ | 33,475 |  |  | $ | 34,446 |
State | 3,662 |  |  | 3,721 |  |  | 3,961 |
Foreign | 11,652 |  |  | 11,959 |  |  | 8,709 |
Deferred |  |  |  |  |
Federal | 20,582 |  |  | (52,473) |  |  | 12,055 |
State | 3,034 |  |  | (8,201) |  |  | (1,379) |
Foreign | (546) |  |  | (90) |  |  | (715) |
Total provision (benefit) for income taxes | $ | 66,686 |  |  | $ | (11,609) |  |  | $ | 57,077 |
The principal components of our deferred tax balances are as follows:
| March 31,
(In thousands) | 2024 |  | 2023
Deferred Tax Assets |  |  |
Allowance for credit losses and sales returns | $ | 4,070 |  |  | $ | 4,882 |
Inventory capitalization | 1,685 |  |  | 2,508 |
Inventory reserves | 1,353 |  |  | 1,707 |
State income taxes | 8,246 |  |  | 7,440 |
Accrued liabilities | 1,431 |  |  | 1,616 |
Accrued compensation | 3,230 |  |  | 3,757 |
Stock compensation | 3,580 |  |  | 4,613 |
Research and development | 4,179 |  |  | 1,429 |
Lease liability | 2,604 |  |  | 4,795 |
Unrealized foreign exchange loss | 204 |  |  | 673 |
Other | 10,319 |  |  | 9,450 |
Total deferred tax assets | $ | 40,901 |  |  | $ | 42,870 |
Deferred Tax Liabilities |  |  |
Property, plant and equipment | $ | (9,403) |  |  | $ | (6,874) |
Intangible assets | (430,308) |  |  | (410,219) |
Right-of-use asset | (2,371) |  |  | (4,300) |
Total deferred tax liabilities | $ | (442,082) |  |  | $ | (421,393) |
Net deferred tax liability | $ | (401,181) |  |  | $ | (378,523) |
The total net deferred tax liability shown above is net of $2.4 million and $1.9 million of deferred tax assets which are included in Other long-term assets on the Consolidated Balance Sheets as of March 31, 2024 and 2023, respectively. We had no valuation allowance as of March 31, 2024 and March 31, 2023. A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:
| Year Ended March 31,
| 2024 |  | 2023 |  | 2022
(In thousands) |  |  | % |  |  |  | % |  |  |  | %
Income tax provision (benefit) at statutory rate | $ | 57,965 |  |  | 21.0 |  |  | $ | (19,722) |  |  | 21.0 |  |  | $ | 55,116 |  |  | 21.0 |
Foreign tax provision | 3,164 |  |  | 1.1 |  |  | 4,168 |  |  | (4.4) |  |  | 2,876 |  |  | 1.1 |
State income taxes provision (benefit), net of federal income tax benefit | 6,004 |  |  | 2.2 |  |  | (5,300) |  |  | 5.6 |  |  | 1,737 |  |  | 0.7 |
Goodwill impairment | — |  |  | — |  |  | 10,232 |  |  | (10.9) |  |  | — |  |  | — |
Research and development | (700) |  |  | (0.3) |  |  | (514) |  |  | 0.5 |  |  | (213) |  |  | (0.1) |
Compensation limitations | 1,910 |  |  | 0.7 |  |  | 1,483 |  |  | (1.6) |  |  | 1,563 |  |  | 0.6 |
Foreign tax credit | (889) |  |  | (0.3) |  |  | (1,297) |  |  | 1.4 |  |  | — |  |  | — |
Uncertain tax positions | 390 |  |  | 0.1 |  |  | (91) |  |  | 0.1 |  |  | (369) |  |  | (0.1) |
Other | (1,158) |  |  | (0.3) |  |  | (568) |  |  | 0.7 |  |  | (3,633) |  |  | (1.5) |
Total provision (benefit) for income taxes | $ | 66,686 |  |  | 24.2 |  |  | $ | (11,609) |  |  | 12.4 |  |  | $ | 57,077 |  |  | 21.7 |
Uncertain tax liability activity is as follows:
| 2024 |  | 2023 |  | 2022
(In thousands) |  |  |  |  |
Balance – beginning of year | $ | 3,295 |  |  | $ | 3,562 |  |  | $ | 4,030 |
Reductions based on lapse of statute of limitations | (417) |  |  | (495) |  |  | (585) |
Payments and other movements | 447 |  |  | 228 |  |  | 117 |
Balance – end of year | $ | 3,325 |  |  | $ | 3,295 |  |  | $ | 3,562 |
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 2024, 2023 or 2022. We reasonably anticipate that uncertain tax positions could decrease in the next year by approximately $2.6 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, 2020 forward.

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