Income Taxes (Tables)

12 Months Ended

Mar. 31, 2014

Income Taxes

Schedule of income (loss) before income taxes

Income (loss) before income taxes for the fiscal years 2014, 2013 and 2012 is summarized as follows (in thousands):

	Years Ended March 31,
	2014		2013(1)			2012(1)
			As Revised			As Restated
Swiss	$	49,503	$	(53,004	)	$	31,045
Non-Swiss		28,079		(200,324	)		93,282
Income (loss) before taxes	$	77,582	$	(253,328	)	$	124,327

(1)

During fiscal year 2014, the Company determined that Swiss loss before taxes reported previously as ($121.8) million and ($65.2) million in fiscal years 2013 and 2012, respectively, was overstated by $71.0 million in 2013 and $64.5 million in 2012 and Non-Swiss income (loss) before taxes previously reported as ($129.3) million and $157.8 million for 2013 and 2012 was understated by $71.0 million in 2013 and overstated by $64.5 million in 2012. The overstatement and understatement is due to the elimination of Swiss loss related to stock equity plans were erroneously presented as Non-Swiss in each year. In addition, Swiss loss before taxes increased by ($2.2) million and decreased by $31.7 million in fiscal year 2013 and 2012, respectively to reflect adjustments from the revision and restatement of the respective financial statements.

Schedule of provision (benefit) for income taxes

The provision for (benefit from) income taxes is summarized as follows (in thousands):

	Years Ended March 31,
	2014			2013			2012
				As Revised			As Restated
Current:
Swiss	$	127		$	672		$	401
Non-Swiss		8,580			(23,146	)		24,312
Deferred:
Swiss		—			—			(254	)
Non-Swiss		(5,429	)		(3,336	)		(4,369	)
Provision for (benefit from) income taxes	$	3,278		$	(25,810	)	$	20,090

Schedule of difference between the provision (benefit) for income taxes and expected tax provision (benefit) at the statutory income tax rate

The difference between the provision for (benefit from) income taxes and the expected tax provision (benefit) at the statutory income tax rate of 8.5% is reconciled below (in thousands):

	Years Ended March 31,
	2014			2013			2012
				As Revised			As Restated
Expected tax provision (benefit) at statutory income tax rates	$	6,594		$	(21,533	)	$	10,568
Income taxes at different rates		497			5,714			2,875
Research and development tax credits		(1,393	)		(3,302	)		(1,666	)
Foreign tax credits		—			(1,535	)		—
Stock-based compensation		1,608			1,643			2,696
Valuation allowance		182			3,809			(104	)
Impairment		—			18,419			—
Restructuring charges		1,174			4,336			—
Tax reserves (releases), net		(4,660	)		1,935			6,555
Audit settlement		(400	)		(35,608	)		—
Other, net		(324	)		312			(834	)
Provision for (benefit from) income taxes	$	3,278		$	(25,810	)	$	20,090

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities consist of the following (in thousands):

	March 31,
	2014			2013(1)
				As Revised
Deferred tax assets:
Net operating loss carryforwards	$	9,421		$	13,279
Tax credit carryforwards		13,241			13,746
Accruals		48,153			44,700
Depreciation and amortization		4,781			4,453
Share-based compensation		15,304			17,147
Gross deferred tax assets		90,900			93,325
Valuation allowance		(4,872	)		(6,014	)
Gross deferred tax assets after valuation allowance		86,028			87,311
Deferred tax liabilities:
Acquired intangible assets and other		(8,436	)		(11,951	)
Gross deferred tax liabilities		(8,436	)		(11,951	)
Deferred tax assets, net	$	77,592		$	75,360

(1)

Deferred tax assets and liabilities as of March 31, 2013 were adjusted to reflect the tax impact from the revision of the financial statement. In addition, during fiscal year 2014, the Company determined that a deferred tax liability related to U.S. flow-through investment of $0.9 million was erroneously presented as a deferred tax asset associated with "Accruals" as of March 31, 2013. The amount was properly reclassed from "Accruals" to "Acquired intangible assets and others" above. The reclassification adjustment has no impact in the Company's Consolidated Statement of Operations, Consolidated Balance Sheet and Statement of Cash Flows.

Summary of aggregate changes in gross unrecognized tax benefits

The aggregate changes in gross unrecognized tax benefits in fiscal years 2014, 2013 and 2012 were as follows (in thousands):

March 31, 2011 (As Restated)	$	130,498
Lapse of statute of limitations		(6,760	)
Decreases in balances related to tax positions taken during prior years		(1,200	)
Increases in balances related to tax positions taken during the year		14,350
March 31, 2012 (As Restated)	$	136,888
Lapse of statute of limitations		(6,490	)
Settlements with tax authorities		(42,770	)
Decreases in balances related to tax positions taken during prior years		(1,500	)
Increases in balances related to tax positions taken during the year		9,570
March 31, 2013 (As Revised)	$	95,698
Lapse of statute of limitations		(12,514	)
Settlements with tax authorities		(100	)
Decreases in balances related to tax positions taken during prior years		(778	)
Increases in balances related to tax positions taken during the year		8,740
March 31, 2014	$	91,046