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INCOME TAX: | 12 Months Ended
--- | ---
Mar. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAX: | INCOME TAX: Total income tax expense (benefit) was allocated as follows (dollars in thousands):
|  | Year ended March 31,
|  | 2021 |  | 2020 |  | 2019
Continuing operations |  | $ | (30,532) |  |  | $ | (40,276) |  |  | $ | (45,409) |
Discontinued operations |  | — |  | 207 |  |  | 470,346 |
|  | $ | (30,532) |  |  | $ | (40,069) |  |  | $ | 424,937 |
Income tax expense (benefit) attributable to loss from continuing operations consists of (dollars in thousands):
|  | Year ended March 31,
|  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
U.S. Federal |  | $ | (28,060) |  |  | $ | (33,715) |  |  | $ | (39,534) |
Non-U.S. |  | 17 |  |  | 146 |  |  | 323 |
State |  | (1,071) |  |  | 171 |  |  | (16,092) |
|  | (29,114) |  |  | (33,398) |  |  | (55,303) |
Deferred: |  |  |  |  |  |
U.S. Federal |  | (1,205) |  |  | (5,103) |  |  | 1,245 |
Non-U.S. |  | (44) |  |  | (1,006) |  |  | 149 |
State |  | (169) |  |  | (769) |  |  | 8,500 |
|  | (1,418) |  |  | (6,878) |  |  | 9,894 |
Total |  | $ | (30,532) |  |  | $ | (40,276) |  |  | $ | (45,409) |
Loss before income tax attributable to U.S. and non-U.S. continuing operations consists of (dollars in thousands):
|  | Year ended March 31,
|  | 2021 |  | 2020 |  | 2019
U.S. |  | $ | (122,257) |  |  | $ | (160,457) |  |  | $ | (174,867) |
Non-U.S. |  | 1,457 |  |  | (5,080) |  |  | (4,489) |
Total |  | $ | (120,800) |  |  | $ | (165,537) |  |  | $ | (179,356) |
Loss before income taxes, as shown above, is based on the location of the entity to which such losses are attributable. However, since such losses may be subject to taxation in more than one country, the income tax provision shown above as U.S. or non-U.S. may not correspond to the loss shown above. Below is a reconciliation of expected income tax benefit computed by applying the U.S. federal statutory rate of 21.0% for fiscal years 2021, 2020 and 2019 to loss before income taxes to actual income tax benefit from continuing operations (dollars in thousands):
|  | Year ended March 31,
|  | 2021 |  | 2020 |  | 2019
Computed expected income tax benefit |  | $ | (25,368) |  |  | $ | (34,763) |  |  | $ | (37,665) |
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |
State income taxes, net of federal benefit |  | (979) |  |  | (473) |  |  | (5,998) |
Research and other tax credits |  | (4,635) |  |  | (1,517) |  |  | (3,141) |
Nondeductible expenses |  | 1,104 |  |  | 838 |  |  | 426 |
Stock-based compensation |  | (2,024) |  |  | 5,025 |  |  | (5,350) |
Non-U.S. subsidiaries taxed at other rates |  | 194 |  |  | 230 |  |  | 1,343 |
Adjustment to valuation allowances |  | 2,230 |  |  | (2,245) |  |  | 5,204 |
Net operating loss carryback taxed at other rates |  | — |  |  | (7,360) |  |  | — |
Other, net |  | (1,054) |  |  | (11) |  |  | (228) |
|  | $ | (30,532) |  |  | $ | (40,276) |  |  | $ | (45,409) |
On March 27, 2020, the U.S. enacted The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act included several significant changes and clarifications to existing tax law, including changes to the treatment of net operating losses (“NOLs”). Under the CARES Act, NOLs arising in tax years beginning after December 31, 2017, and before January 1, 2021 may be carried back to each of the five tax years preceding the tax year of the loss. As such, the Company plans to carry back its fiscal 2021 NOL, resulting in an expected refund of approximately $28 million. The Company was also able to carry back its fiscal 2020 NOL, resulting in an expected refund of approximately $33 million, also in fiscal 2022. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at March 31, 2021 and 2020 are presented below (dollars in thousands).
|  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Accrued expenses |  | $ | 3,501 |  |  | $ | 3,978 |
Deferred revenue |  | 11 |  |  | 16 |
Lease liabilities |  | 3,324 |  |  | 4,939 |
Net operating loss carryforwards |  | 35,945 |  |  | 33,516 |
Stock-based compensation |  | 2,991 |  |  | 8,076 |
Nonqualified deferred compensation |  | 2,802 |  |  | 2,815 |
Tax credit carryforwards |  | 7,818 |  |  | 1,240 |
Other |  | 2,856 |  |  | 2,778 |
Total deferred tax assets |  | 59,248 |  |  | 57,358 |
Less valuation allowance |  | (35,332) |  |  | (32,971) |
Net deferred tax assets |  | 23,916 |  |  | 24,387 |
Deferred tax liabilities: |  |  |  |
Prepaid expenses |  | (6,734) |  |  | (2,239) |
Property and equipment |  | (248) |  |  | (1,742) |
Right-of-use assets |  | (3,016) |  |  | (4,147) |
Intangible assets |  | (8,409) |  |  | (9,605) |
Deferred commissions |  | (5,391) |  |  | (3,817) |
Accrued expenses |  | — |  |  | (2,189) |
Total deferred tax liabilities |  | (23,798) |  |  | (23,739) |
Net deferred tax assets |  | $ | 118 |  |  | $ | 648 |
At March 31, 2021, the Company has net operating loss carryforwards of approximately $34.3 million and $126.2 million for U.S. federal and state income tax purposes, respectively. Of the net operating loss carryforwards, $24.0 million and $18.9 million will not expire for federal and state purposes, respectively. The remaining carryforwards will expire in various amounts and will completely expire if not used by 2041. The Company has foreign net operating loss carryforwards of approximately $101.0 million. Of this amount, $90.2 million do not have expiration dates. The remainder expires in various amounts and will completely expire if not used by 2031. The Company has federal and state credit carryforwards of $5.4 million and $5.8 million, respectively. Of the state credit carryforwards, $5.2 million will not expire. The remaining credit carryforwards will expire in various amounts and will completely expire if not used by 2041. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the Company’s net deferred tax assets is dependent upon its generation of sufficient taxable income of the proper character in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences and the use of net operating loss and credit carryforwards. Based upon the weight of available evidence, including the Company’s history of losses from continuing operations, management believes that it is not more likely than not the Company will realize the benefits of the deductible temporary differences and net operating loss and credit carryforwards. Accordingly, the Company has established valuation allowances against its deferred tax assets. Based upon the Company's history of losses in certain non-U.S. jurisdictions, the Company has not recorded a benefit for current foreign losses in these jurisdictions. In addition, management believes it is not more than likely than not the Company will realize the benefits of certain foreign net operating loss carryforwards and has established valuation allowances in the amount of $26.0 million against deferred tax assets in such jurisdictions. No valuation allowance has been established against deferred tax assets in non-U.S. jurisdictions in which historical profits and forecasted continuing profits exist. The following table sets forth changes in the total gross unrecognized tax benefits for the fiscal years ended March 31, 2021, 2020 and 2019 (dollars in thousands):
|  | Year ended March 31,
|  | 2021 |  | 2020 |  | 2019
Balance at beginning of period |  | $ | 23,400 |  |  | $ | 19,600 |  |  | $ | 15,415 |
Increases related to prior year tax positions |  | — |  |  | 2,458 |  |  | 325 |
Decreases related to prior year tax positions |  | (139) |  |  | (1,048) |  |  | (292) |
Increases related to current year tax positions |  | 1,765 |  |  | 2,433 |  |  | 5,483 |
Lapse of statute of limitations |  | — |  |  | (43) |  |  | (1,331) |
Balance at end of period |  | $ | 25,026 |  |  | $ | 23,400 |  |  | $ | 19,600 |
Gross unrecognized tax benefits as of March 31, 2021 was $25.0 million, of which $22.6 million would reduce the Company’s effective tax rate in future periods if and when realized. The Company reports accrued interest and penalties related to unrecognized tax benefits in income tax expense. The combined amount of accrued interest and penalties related to tax positions on tax returns was approximately $3.5 million as of March 31, 2021. Accrued interest and penalties increased by $1.0 million during fiscal 2021. The Company does not anticipate a reduction of unrecognized tax benefits within the next 12 months. The Company files a consolidated U.S. federal income tax return and tax returns in various state and local jurisdictions. The Company’s subsidiaries also file tax returns in various foreign jurisdictions in which they operate. In the U.S., the statute of limitations for Internal Revenue Service examinations remains open for the Company’s federal income tax returns for fiscal years after 2013. The status of U.S. federal, state and foreign tax examinations varies by jurisdiction. The Company does not anticipate any material adjustments to its financial statements resulting from tax examinations currently in progress.

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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