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INCOME TAXES (Tables) | 12 Months Ended
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Mar. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax Expense | Income before income tax expense consisted of the following (in thousands):
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
Domestic | $ | 27,690 |  |  | $ | 4,985 |  |  | $ | (1,502) |
Foreign | 15,202 |  |  | 17,319 |  |  | 3,426 |
| $ | 42,892 |  |  | $ | 22,304 |  |  | $ | 1,924 |
Summary of Components of Income Tax Expense | The components of the income tax expense (benefit) are as follows (in thousands):
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
Current income tax expense: |  |  |  |  |
Federal | $ | 7,240 |  |  | $ | 14,701 |  |  | $ | 2,817 |
State | 2,897 |  |  | 2,426 |  |  | 1,850 |
Foreign | 9,343 |  |  | 9,902 |  |  | 9,712 |
| 19,480 |  |  | 27,029 |  |  | 14,379 |
Deferred income tax benefit: |  |  |  |  |
Federal | (7,240) |  |  | (18,190) |  |  | (5,287) |
State | (3,406) |  |  | (3,404) |  |  | (2,897) |
Foreign | (1,816) |  |  | (2,483) |  |  | (1,517) |
| (12,462) |  |  | (24,077) |  |  | (9,701) |
| $ | 7,018 |  |  | $ | 2,952 |  |  | $ | 4,678 |
Schedule of Federal Statutory Income Tax Rate to Effective Tax Rate | The income tax expense (benefit) computed using the U.S. statutory federal income tax rate differs from NetScout's effective tax rate primarily due to the following:
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
U.S. statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal tax effect | 1.1 |  |  | 2.4 |  |  | (52.9) |
U.S. federal and state research and development tax credits | (11.9) |  |  | (23.7) |  |  | (226.4) |
Effect of foreign operations | 6.3 |  |  | (4.5) |  |  | 46.8 |
Meals and entertainment | 0.2 |  |  | 0.8 |  |  | 44.6 |
Change in valuation allowance | 5.1 |  |  | 24.0 |  |  | 250.0 |
Internal restructuring charges | — |  |  | — |  |  | 196.5 |
Stock compensation | 2.0 |  |  | 5.1 |  |  | 172.7 |
Global intangible low taxed income | (0.1) |  |  | 0.8 |  |  | 8.4 |
Foreign derived intangible income | (12.6) |  |  | (24.5) |  |  | (144.3) |
Base erosion and anti-abuse act | — |  |  | — |  |  | (322.8) |
Foreign withholding | 5.2 |  |  | 13.8 |  |  | 222.5 |
Other permanent differences | 0.1 |  |  | (2.0) |  |  | 27.0 |
| 16.4 | % |  | 13.2 | % |  | 243.1 | %
Summary of Components of Net Deferred Tax Assets | The components of net deferred tax assets and liabilities are as follows (in thousands):
| Fiscal Year Ended March 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Accrued expenses | $ | 8,721 |  |  | $ | 8,480 |
Deferred revenue | 17,267 |  |  | 17,648 |
Reserves | 3,106 |  |  | 2,898 |
Pension and other retiree benefits | 4,903 |  |  | 6,160 |
Net operating loss carryforwards | 11,611 |  |  | 11,526 |
Tax credit carryforwards | 21,132 |  |  | 19,432 |
Share-based compensation | 6,172 |  |  | 5,397 |
Operating lease liability | 15,639 |  |  | 17,333 |
Other deferred tax assets | 658 |  |  | 2,116 |
Total gross deferred tax assets | 89,209 |  |  | 90,990 |
Valuation allowance | (13,160) |  |  | (11,406) |
Net deferred tax assets | 76,049 |  |  | 79,584 |
Deferred tax liabilities: |  |  |
Intangible assets | (117,839) |  |  | (132,635) |
Operating lease right-of-use asset | (13,189) |  |  | (14,474) |
Depreciation | (6,612) |  |  | (7,818) |
Other deferred tax liabilities | (10,425) |  |  | (8,848) |
Total deferred tax liabilities | $ | (72,016) |  |  | $ | (84,191) |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 31, 2022, 2021 and 2020 is as follows (in thousands):
| Fiscal Year Ended March 31,
| 2022 |  | 2021 |  | 2020
Balance at April 1, | $ | 913 |  |  | $ | 1,151 |  |  | $ | 1,314 |
Additions based on tax positions related to the current year | 28 |  |  | 48 |  |  | 49 |
Reductions of prior years tax positions due to lapse of statute of limitations | (303) |  |  | (286) |  |  | (212) |
Balance at March 31, | $ | 638 |  |  | $ | 913 |  |  | $ | 1,151 |

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