INCOME TAXES (Tables)

12 Months Ended

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