Income Taxes

6 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The provision of income taxes was $1,641 in the three months ended September 30, 2023, reflecting an effective tax rate of 24.5%. The provision of income taxes was $5,707 in the three months ended September 30, 2022, reflecting an effective tax rate of 29.5%.

The provision of income taxes in the six months ended September 30, 2023 was $4,031, reflecting an effective tax rate of 26.4%. The provision of income taxes in the six months ended September 30, 2022 was $5,460, reflecting an effective tax rate of 27.0%.

The decrease in the effective tax rate for the three and six months ended September 30, 2023 compared to the corresponding prior periods was primarily due to an increase to research and development credits and a decrease to nondeductible stock based compensation, partially offset by an increase of discrete items.

The deferred tax assets and liabilities are presented net in the accompanying condensed consolidated balance sheets as noncurrent. We expect to receive the full benefit of the deferred tax assets recorded, with the exception of certain state credits and state net operating loss carryforwards, for which we have recorded a valuation allowance. We had unrecognized tax benefits of $6,198 and $5,911 related to various federal, state, and local income tax matters as of September 30, 2023 and March 31, 2023, respectively. If recognized, this amount would reduce our effective tax rate.

We are subject to taxation in federal, various state, India, and United Kingdom jurisdictions. We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2019. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2018. We do not anticipate the total unrecognized tax benefits to significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months.