Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

ncome (loss) from continuing operations before income taxes was as follows (in thousands):


	Year Ended March 31,		Three-Months Ended March 31, (transition period)		Year Ended December 31,
	2022		2021		2020		2019
U.S.	$	(32,904)	$	35,262	$	68,555	$	(102,004)
Non-U.S.	4,674		2,914		4,180		172
(Loss) income from continuing operations before income taxes	$	(28,230)	$	38,176	$	72,735	$	(101,832)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) from continuing operations was as follows (in thousands):


	Year Ended March 31,		Three-Months Ended March 31, (transition period)		Year Ended December 31,
	2022		2021		2020		2019
Current:
U.S. federal	$	362	$	5,212	$	9,465	$	164
U.S. state	(5)		1,267		3,834		419
Non-U.S.	1,444		804		1,065		453
Total current	1,801		7,283		14,364		1,036
Deferred:
U.S. federal	(6,881)		365		(517)		(9,431)
U.S. state	(940)		84		(1,629)		(540)
Non-U.S.	(6)		(137)		(20)		(602)
Total deferred	(7,827)		312		(2,166)		(10,573)
Income tax (benefit) expense	$	(6,026)	$	7,595	$	12,198	$	(9,537)

Schedule of Effective Income Tax Rate Reconciliation

Following is a reconciliation of the U.S. statutory federal income tax rate with our effective income tax rate for continuing operations:


	Year Ended March 31,		Three-Months Ended March 31, (transition period)		Year Ended December 31,
	2022		2021		2020		2019
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State tax, net of U.S. federal tax benefit	3.6		2.8		3.8		3.8
Non-U.S. income taxes	(0.8)		0.3		0.4		—
Nondeductible operating expenses	(0.5)		0.9		0.3		(0.4)
Foreign-derived intangible income deduction	—		(1.3)		(0.8)		—
Section 162(m) limitation	(5.4)		—		0.7		—
Non-deductible foreign employee stock compensation	(1.2)		—		—		—
Non-deductible acquisition related expenses	(1.8)		—		—		—
Research and development credit	2.3		(0.9)		(1.0)		0.5
Change in deferred tax measurement rate	0.2		0.1		(5.5)		(0.1)
Change in uncertain tax positions	(1.0)		0.2		0.2		0.1
Excess tax benefits from stock plans	5.4		(3.1)		(1.5)		(0.2)
Change in valuation allowance	(0.4)		(0.1)		34.3		(1.5)
Impairment of intangibles	—		—		—		(13.6)
Capital losses	—		—		(34.8)		—
Other	(0.1)		—		(0.3)		(0.2)
Effective income tax rate	21.3	%	19.9	%	16.8	%	9.4	%

Schedule of Deferred Tax Assets and Liabilities

Individually significant components of deferred income tax assets and liabilities were as follows (in thousands):


	As of March 31,				As of December 31,
	2022		2021		2020
Deferred income tax assets:
Accrued liabilities	$	5,828	$	4,355	$	4,113
Allowance for doubtful accounts	89		276		83
Inventory valuation	222		223		260
Capitalized indirect inventory costs	1,044		1,043		649
Stock-based compensation expense	895		739		978
Deferred rent	6,065		5,211		5,408

Deferred revenue	960		43		16
Interest expense	383		—		—
Net operating loss carryforward	2,194		1,317		1,427
Basis difference on long-lived assets	1,189		1,205		1,216
Credit carryforward	1,048		276		276
Capital losses	25,744		25,565		26,126
Other	290		279		89
Gross deferred income tax assets	45,951		40,532		40,641
Valuation allowance	(26,510)		(26,335)		(26,985)
Deferred income tax assets, net of valuation allowance	19,441		14,197		13,656
Deferred income tax liabilities:
Prepaid advertising	(273)		(1,133)		(134)
Other prepaids	(135)		(573)		(923)
Basis difference of long-lived assets	(4,740)		(5,664)		(5,275)

Deferred rent	(5,532)		(4,682)		(4,867)
Other	(1)		(1)		(31)
Deferred income tax liabilities	(10,681)		(12,053)		(11,230)
Net deferred income tax assets	$	8,760	$	2,144	$	2,426

Our net deferred income tax assets were recorded on our Consolidated Balance Sheets as follows (in thousands):


	As of March 31,				As of December 31,
	2022		2021		2020

Deferred income tax assets, non-current	$	8,760	$	2,144	$	2,426
Deferred income tax liabilities, non-current	—		—		—

Net deferred income tax assets (liabilities)	$	8,760	$	2,144	$	2,426

Summary of Income Tax Carryforwards

As of March 31, 2022, we had the following income tax carryforwards (in millions):


	Amount		Expires in
Net operating loss carryforwards


U.S. federal	$	4.0	Indefinite
U.S. state	$	18.4	2028 - 2042

U.S. state	$	1.4	Indefinite
Capital loss carryforwards
U.S federal and state	$	101.3	2025
Income tax credit carryforwards

U.S. federal	$	0.7	2042
U.S. state	$	0.4	Indefinite

Schedule of Reconciliatin of Gross Unrecognized Tax Benefits From Uncertain Tax Positions Roll Forward

Following is a reconciliation of gross unrecognized tax benefits from uncertain tax positions, excluding the impact of penalties and interest (in thousands):


	Year Ended March 31,		Three-Months Ended March 31, (transition period)		Year Ended December 31,
	2022		2021		2020		2019
Balance, beginning	$	2,374	$	2,323	$	2,338	$	2,330
Additions for tax positions taken in prior years	133		—		4		44
Reductions for tax positions taken in prior years	—		—		—		(81)
Additions for tax positions related to the current year	103		51		109		87
Lapses of statutes of limitations	—		—		(20)		(42)
Other	(828)		—		(108)		—
Balance, ending	$	1,782	$	2,374	$	2,323	$	2,338