INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2023

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,
	2023		2022		2021
Domestic	$	56,463	$	27,690	$	4,985
Foreign	11,952		15,202		17,319
	$	68,415	$	42,892	$	22,304

Schedule of Components of Income Tax Expense

The components of the income tax expense are as follows (in thousands):

	Fiscal Year Ended March 31,
	2023		2022		2021
Current income tax expense:
Federal	$	48,853	$	7,240	$	14,701
State	5,766		2,897		2,426
Foreign	7,879		9,343		9,902
	62,498		19,480		27,029
Deferred income tax benefit:
Federal	(47,297)		(7,240)		(18,190)
State	(4,006)		(3,406)		(3,404)
Foreign	(2,428)		(1,816)		(2,483)
	(53,731)		(12,462)		(24,077)
	$	8,767	$	7,018	$	2,952

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,
	2023		2022		2021
U.S. statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax effect	3.6		1.1		2.4
U.S. federal and state research and development tax credits	(9.0)		(11.9)		(23.7)
Effect of foreign operations	1.8		6.3		(4.5)
Meals and entertainment	0.4		0.2		0.8
Change in valuation allowance	3.5		5.1		24.0
Stock compensation	(0.6)		2.0		5.1
Global intangible low taxed income	—		(0.1)		0.8
Foreign derived intangible income	(11.7)		(12.6)		(24.5)
Foreign withholding	4.1		5.2		13.8
Other permanent differences	(0.3)		0.1		(2.0)
	12.8	%	16.4	%	13.2	%

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,
	2023		2022
Deferred tax assets:
Accrued expenses	$	6,074	$	8,721
Capitalized R&D expenses	40,909		—
Deferred revenue	24,112		17,267
Reserves	3,902		3,106
Pension and other retiree benefits	2,319		4,903
Net operating loss carryforwards	9,016		11,611
Tax credit carryforwards	21,512		21,132
Share-based compensation	7,338		6,172
Operating lease liability	14,020		15,639
Other deferred tax assets	35		658
Total gross deferred tax assets	129,237		89,209
Valuation allowance	(15,612)		(13,160)
Net deferred tax assets	113,625		76,049
Deferred tax liabilities:
Intangible assets	(104,245)		(117,839)
Operating lease right-of-use asset	(11,854)		(13,189)
Depreciation	(5,563)		(6,612)
Other deferred tax liabilities	(12,368)		(10,425)
Total deferred tax liabilities	$	(20,405)	$	(72,016)

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, 2023, 2022 and 2021 is as follows (in thousands):

	Fiscal Year Ended March 31,
	2023		2022		2021
Balance at April 1,	$	638	$	913	$	1,151
Additions based on tax positions related to the current year	28		28		48
Reductions of prior years tax positions due to lapse of statute of limitations	—		(303)		(286)
Increase in unrecognized tax benefits as a result of a tax position taken during a prior period	358		—		—
Balance at March 31,	$	1,024	$	638	$	913