XML 44 R23.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Income Taxes
 12 Months Ended
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)202420232022
United States$239,405 $(130,331)$236,381 
Foreign36,620 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)202420232022
Current   
Federal$28,302 $33,475 $34,446 
State3,662 3,721 3,961 
Foreign11,652 11,959 8,709 
Deferred   
Federal20,582 (52,473)12,055 
State3,034 (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)20242023
Deferred Tax Assets  
Allowance for credit losses and sales returns$4,070 $4,882 
Inventory capitalization1,685 2,508 
Inventory reserves1,353 1,707 
State income taxes8,246 7,440 
Accrued liabilities1,431 1,616 
Accrued compensation3,230 3,757 
Stock compensation3,580 4,613 
Research and development4,179 1,429 
Lease liability2,604 4,795 
Unrealized foreign exchange loss204 673 
Other10,319 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,
202420232022
(In thousands) % % %
Income tax provision (benefit) at statutory rate$57,965 21.0 $(19,722)21.0 $55,116 21.0 
Foreign tax provision3,164 1.1 4,168 (4.4)2,876 1.1 
State income taxes provision (benefit), net of federal income tax benefit6,004 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 limitations1,910 0.7 1,483 (1.6)1,563 0.6 
Foreign tax credit(889)(0.3)(1,297)1.4 — — 
Uncertain tax positions390 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:
 202420232022
(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 movements447 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.