XML 72 R47.htm IDEA: XBRL DOCUMENT
v3.25.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Mar. 31, 2025
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,
| 2025 |  | 2024 |  | 2023
Domestic | $ | (386,859) |  |  | $ | (169,657) |  |  | $ | 56,463 |
Foreign | 21,065 |  |  | 25,147 |  |  | 11,952 |
| $ | (365,794) |  |  | $ | (144,510) |  |  | $ | 68,415 |
Schedule of Components of Income Tax Expense | The components of the income tax expense are as follows (in thousands):
| Fiscal Year Ended March 31,
| 2025 |  | 2024 |  | 2023
Current income tax expense: |  |  |  |  |
Federal | $ | 21,766 |  |  | $ | 32,798 |  |  | $ | 48,853 |
State | 4,548 |  |  | 6,161 |  |  | 5,766 |
Foreign | 12,353 |  |  | 10,238 |  |  | 7,879 |
| 38,667 |  |  | 49,197 |  |  | 62,498 |
Deferred income tax benefit: |  |  |  |  |
Federal | (30,403) |  |  | (36,402) |  |  | (47,297) |
State | (5,267) |  |  | (7,611) |  |  | (4,006) |
Foreign | (1,869) |  |  | (1,960) |  |  | (2,428) |
| (37,539) |  |  | (45,973) |  |  | (53,731) |
| $ | 1,128 |  |  | $ | 3,224 |  |  | $ | 8,767 |
Schedule of Federal Statutory Income Tax Rate to Effective Tax Rate | The income tax expense 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,
| 2025 |  | 2024 |  | 2023
U.S. statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal tax effect | (0.5) |  |  | (0.6) |  |  | 3.6 |
U.S. federal and state research and development tax credits | 2.0 |  |  | 6.4 |  |  | (9.0) |
Effect of foreign operations | (0.7) |  |  | 1.5 |  |  | 1.8 |
Meals and entertainment | (0.2) |  |  | (0.9) |  |  | 0.4 |
Change in valuation allowance | (0.6) |  |  | (4.1) |  |  | 3.5 |
Goodwill impairment | (22.0) |  |  | (28.5) |  |  | — |
Stock compensation | (1.3) |  |  | (1.0) |  |  | (0.6) |
Divestiture | — |  |  | (0.6) |  |  | — |
Global intangible low taxed income | — |  |  | (0.2) |  |  | — |
Foreign derived intangible income | 3.2 |  |  | 6.3 |  |  | (11.7) |
Foreign withholding | (1.3) |  |  | (1.4) |  |  | 4.1 |
Other permanent differences | 0.1 |  |  | (0.1) |  |  | (0.3) |
| (0.3) | % |  | (2.2) | % |  | 12.8 | %
Schedule 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,
| 2025 |  | 2024
Deferred tax assets: |  |  |
Accrued expenses | $ | 5,056 |  |  | $ | 4,986 |
Capitalized R&D expenses | 92,427 |  |  | 71,205 |
Deferred revenue | 20,356 |  |  | 21,482 |
Reserves | 2,378 |  |  | 2,650 |
Pension and other retiree benefits | 2,265 |  |  | 2,733 |
Net operating loss carryforwards | 6,532 |  |  | 8,199 |
Tax credit carryforwards | 32,042 |  |  | 29,109 |
Share-based compensation | 7,140 |  |  | 8,233 |
Operating lease liability | 10,503 |  |  | 12,292 |
Total gross deferred tax assets | 178,699 |  |  | 160,889 |
Valuation allowance | (23,088) |  |  | (21,183) |
Net deferred tax assets | 155,611 |  |  | 139,706 |
Deferred tax liabilities: |  |  |
Intangible assets | (65,979) |  |  | (86,170) |
Operating lease right-of-use asset | (9,067) |  |  | (10,481) |
Depreciation | (2,494) |  |  | (3,472) |
Other deferred tax liabilities | (14,420) |  |  | (13,190) |
Total deferred tax liabilities | $ | 63,651 |  |  | $ | 26,393 |
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, 2025, 2024 and 2023 is as follows (in thousands):
| Fiscal Year Ended March 31,
| 2025 |  | 2024 |  | 2023
Balance at April 1, | $ | 1,052 |  |  | $ | 1,024 |  |  | $ | 638 |
Additions based on tax positions related to the current year | 28 |  |  | 28 |  |  | 28 |
Reductions of prior years tax positions due to lapse of statute of limitations | (356) |  |  | — |  |  | — |
Increase in unrecognized tax benefits as a result of a tax position taken during a prior period | — |  |  | — |  |  | 358 |
Balance at March 31, | $ | 724 |  |  | $ | 1,052 |  |  | $ | 1,024 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration