Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

The provision for (benefit of) income taxes consists of the following components:

	Fiscal Year Ended March 31,
	2019			2018			2017
Current:
Federal taxes	$	1,159		$	(2,788	)	$	3,443
State taxes		(238	)		(1,073	)		1,556
Foreign taxes		744			678			498
Total current taxes		1,665			(3,183	)		5,497
Deferred:
Federal taxes	$	3,752		$	2,949		$	824
State taxes		(428	)		(2,510	)		(879	)
Foreign taxes		(195	)		(86	)		(74	)
Total deferred taxes		3,129			353			(129	)
Provision for (benefit of) income taxes	$	4,794		$	(2,830	)	$	5,368

Summary of Provision for Income Taxes Differs from the Amount Computed at Federal Statutory Rate

The provision for (benefit of) income taxes differs from the amount computed at the federal statutory rate as follows:

	Fiscal Year Ended March 31,
	2019			2018			2017
Tax expense at United States federal statutory rate ⁽¹⁾	$	6,150		$	(129	)	$	8,263
Items affecting federal income tax rate:
Research and development tax credits		(4,647	)		(4,179	)		(2,276	)
Impact of foreign operations		(304	)		(365	)		(402	)
Compensation		(169	)		620			192
Return to provision true-ups		(149	)		(2,229	)		(300	)
Impact of valuation allowance		(33	)		(101	)		(212	)
Acquisition expenses		(2	)		304			1,336
Qualified production activities income deduction		—			(4	)		(763	)
Impact of deferred adjustments		132			415			(490	)
Non-deductible expenses		140			98			(7	)
Foreign transition tax - Tax Reform		210			1,381			—
Revaluation of deferred tax balances - Tax Reform		231			2,328			—
Impact of uncertain tax positions		375			(2,884	)		311
Impact of amended returns		391			196			(1,530	)
Impact of audit settlements		967			428			—
State income taxes		1,502			1,291			1,246
Provision for (benefit of) income taxes	$	4,794		$	(2,830	)	$	5,368

⁽¹⁾ Federal statutory rate was 21.0%, 31.5% and 35.0% for March 31, 2019, 2018 and 2017, respectively.

Summary of Net Deferred Tax Assets and Liabilities

The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following:

	March 31, 2019			March 31, 2018
Deferred tax assets:
Compensation and benefits	$	10,707		$	8,023
Research and development credit		10,089			5,368
Deferred revenue		7,171			4,918
Net operating losses		5,320			9,729
Deferred rent		3,143			3,364
Allowance for doubtful accounts		2,156			2,267
Foreign deferred taxes		1,455			1,259
Accrued legal settlement		—			4,906
Other		690			580
Total deferred tax assets		40,731			40,414
Deferred tax liabilities:
Intangibles assets	$	(15,806	)	$	(17,323	)
Prepaid expense		(6,407	)		(1,217	)
Capitalized software		(4,900	)		(4,854	)
Accounts receivable		(2,255	)		(3,340	)
Accelerated depreciation		(1,606	)		(1,568	)
Total deferred tax liabilities		(30,974	)		(28,302	)
Valuation allowance		(3,563	)		(2,893	)
Deferred tax assets, net	$	6,194		$	9,219

Summary of Reconciliation in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities in our consolidated balance sheet, is as follows:

Balance as of March 31, 2017	$	4,762
Additions for current year tax positions		217
Reductions for prior year tax positions		(2,560	)
Balance as of March 31, 2018		2,419
Additions for prior year tax positions		1,405
Reductions for prior year tax positions		(930	)
Balance as of March 31, 2019	$	2,894