Income Taxes

3 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely.

The Company recorded an income tax provision of $0.3 million for the three months ended June 30, 2022 related to certain foreign and U.S. taxes and an income tax benefit of $0.5 million for the three months ended June 30, 2021, primarily related to a one-time income tax benefit from the acquisition of CodeStream.

Based on the available objective evidence during the three months ended June 30, 2022, the Company believes it is not more likely than not to realize tax benefits of U.S. and Japan losses incurred during the three months ended June 30, 2022. The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the U.S. and Japan losses, and foreign tax rate differences.