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INCOME TAXES | 12 Months Ended
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Mar. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Pre-tax income (loss) reflected in the Consolidated Statements of Operations for the years ended March 31, 2017, 2016 and 2015 is as follows (in thousands):
| For the year ended March 31,
| 2017 |  | 2016 |  | 2015
U.S. | $ | 1,268 |  |  | $ | (78,956 | ) |  | $ | 13,830 |
Foreign | 3,489 |  |  | 3,745 |  |  | 3,971 |
| $ | 4,757 |  |  | $ | (75,211 | ) |  | $ | 17,801 |
Income tax provision consists of the following (in thousands):
| For the year ended March 31,
| 2017 |  | 2016 |  | 2015
Federal: | $ | (421 | ) |  | $ | (401 | ) |  | $ | (138 | )
State: |  |  |  |  |
Current | 75 |  |  | 52 |  |  | 125 |
Foreign: |  |  |  |  |
Current | 1,555 |  |  | 1,591 |  |  | 890 |
Deferred | (97 | ) |  | (59 | ) |  | (159 | )
Total foreign | 1,458 |  |  | 1,532 |  |  | 731 |
Income tax provision | $ | 1,112 |  |  | $ | 1,183 |  |  | $ | 718 |
The income tax provision differs from the amount computed by applying the federal statutory rate of 35% to income (loss) before income taxes as follows (in thousands):
| For the year ended March 31,
| 2017 |  | 2016 |  | 2015
Expense (benefit) at federal statutory rate | $ | 1,665 |  |  | $ | (26,324 | ) |  | $ | 6,230 |
Permanent items | 714 |  |  | 20,597 |  |  | 622 |
Foreign taxes | 1,353 |  |  | 974 |  |  | 628 |
State income taxes | 75 |  |  | 53 |  |  | 125 |
Unbenefited (Benefited) losses and credits | (2,379 | ) |  | 5,726 |  |  | (6,852 | )
Credit monetization | (421 | ) |  | (401 | ) |  | (138 | )
Other | 105 |  |  | 558 |  |  | 103 |
Income tax provision | $ | 1,112 |  |  | $ | 1,183 |  |  | $ | 718 |
Significant components of deferred tax assets and liabilities are as follows (in thousands):
| As of March 31,
| 2017 |  | 2016
Deferred tax assets: |  |  |
Inventory valuation method | $ | 1,964 |  |  | $ | 2,025 |
Accrued warranty expense | 1,256 |  |  | 1,320 |
Distribution reserves | 5,364 |  |  | 3,898 |
Loss carryforwards | 87,579 |  |  | 108,576 |
Tax credits | 131,939 |  |  | 132,054 |
Restructuring charge accruals | 520 |  |  | 1,054 |
Deferred revenue | 17,592 |  |  | 16,739 |
Other accruals and reserves not currently deductible for tax purposes | 11,414 |  |  | 11,917 |
| 257,628 |  |  | 277,583 |
Less valuation allowance | (202,991 | ) |  | (224,661 | )
Deferred tax asset | $ | 54,637 |  |  | $ | 52,922 |
Deferred tax liabilities: |  |  |
Depreciation | $ | (3,906 | ) |  | $ | (3,962 | )
Acquired intangibles | (11,485 | ) |  | (8,244 | )
Tax on unremitted foreign earnings | (16,571 | ) |  | (16,549 | )
Other | (21,558 | ) |  | (23,147 | )
Deferred tax liability | $ | (53,520 | ) |  | $ | (51,902 | )
Net deferred tax asset | $ | 1,117 |  |  | $ | 1,020 |
A reconciliation of the gross unrecognized tax benefits follows (in thousands):
| For the year ended March 31,
| 2017 |  | 2016 |  | 2015
Beginning balance | $ | 32,860 |  |  | $ | 32,449 |  |  | $ | 32,449 |
Settlement and effective settlements with tax authorities and related remeasurements | (411 | ) |  | — |  |  | — |
Increase in balances related to tax positions taken in prior period | 243 |  |  | 411 |  |  | — |
Ending balance | $ | 32,692 |  |  | $ | 32,860 |  |  | $ | 32,449 |
During fiscal 2017, excluding interest and penalties, there was a $0.2 million change in our unrecognized tax benefits. Including interest and penalties, the total unrecognized tax benefit at March 31, 2017 was $34.0 million, all of which, if recognized, would favorably affect the effective tax rate. At March 31, 2017, accrued interest and penalties totaled $1.3 million. Our practice is to recognize interest and penalties related to income tax matters in income tax provision in the Consolidated Statements of Operations. Unrecognized tax benefits, including interest and penalties, were recorded in other long-term liabilities in the Consolidated Balance Sheets. We file our tax returns as prescribed by the laws of the jurisdictions in which we operate. Our U.S. tax returns have been audited for years through 2002 by the Internal Revenue Service. In other major jurisdictions, we are generally open to examination for the most recent three to five fiscal years. Although timing of the resolution and closure on audits is highly uncertain, we do not believe it is likely that the unrecognized tax benefits would materially change in the next 12 months. As of March 31, 2017, we had federal net operating loss and tax credit carryforwards of approximately $295.8 million and $91.3 million, respectively. Our federal net operating loss carryforwards include $34.3 million attributable to excess tax deductions from stock option exercises, and are not included in the deferred tax assets shown above. The benefit of these loss carryforwards will be credited to equity when realized. The net operating loss and tax credit carryforwards expire in varying amounts beginning in fiscal 2018 if not previously utilized, the utilization of which is limited under the tax law ownership change provision. These carryforwards include $11.1 million of acquired net operating losses and $9.6 million of credits. Certain changes in stock ownership could result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. Should the company undergo such a change in stock ownership, it could severely limit the usage of these carryover tax attributes against future income, resulting in additional tax charges. Due to our history of net losses and the difficulty in predicting future results, we believe that we cannot rely on projections of future taxable income to realize the deferred tax assets. Accordingly, we have established a full valuation allowance against our U.S. net deferred tax assets. Significant management judgment is required in determining our deferred tax assets and liabilities and valuation allowances for purposes of assessing our ability to realize any future benefit from our net deferred tax assets. We intend to maintain this valuation allowance until sufficient positive evidence exists to support the reversal of the valuation allowance. Our income tax expense recorded in the future will be reduced to the extent that sufficient positive evidence materializes to support a reversal of, or decrease in, our valuation allowance.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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