INCOME TAXES

6 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

As of September 30, 2019 and March 31, 2019, the Company had $6.0 million and $5.8 million, respectively, of total gross unrecognized tax benefits including interest.  Approximately $5.5 million and $5.4 million, respectively, represent the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate. At September 30, 2019, approximately $1.6 million of gross unrecognized tax benefits are expected to be resolved during the next twelve months through the expiration of the statute of limitations and settlement with taxing authorities. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense.  As of September 30, 2019, the Company had approximately $1.9 million accrued for gross interest, of which $166.8 thousand was accrued during the six months ended September 30, 2019.

The Company is subject to U.S. income taxes, as well as various other state and local jurisdictions.  With the exception of a few states, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2015, although carryforward attributes that were generated prior to 2015 may still be adjusted upon examination by the taxing authorities if they either have been or will be used in a future period.  

The Company’s effective income tax rate for continuing operations decreased to (10.3)% for the quarter ended September 30, 2019 compared to 20.4% for the prior year quarter. The decrease is primarily due to the recognition of tax credits under the Federal Historic Tax Credit program and a reduction in the permanent difference related to non-qualified stock option expense in the current quarter, which was partially offset by an increase in disallowed executive compensation under IRC Section 162(m).