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Income Taxes
6 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

10. Income Taxes

The provision for income taxes in the three months ended September 30, 2019 and 2018 was $509 and $1,896, respectively. The effective tax rates were 7.7% and 12.6% for the three months ended September 30, 2019 and 2018, respectively. The decrease in the effective tax rate for the three months ended September 30, 2019 compared to the prior year period was primarily due to the increased net benefit of the research and development credits, partially offset by nondeductible stock option related expenses, nondeductible officer’s compensation, and reserves for uncertain tax position.

The provision for income taxes in the six months ended September 30, 2019 and 2018 was $129 and $2,338, respectively. The effective tax rates were 1.7% and 12.9% for the six months ended September 30, 2019 and 2018, respectively. The decrease in the effective tax rate for the six months ended September 30, 2019 compared to the prior year period was primarily due to the increased net benefit of the research and development credits and other one-time discrete benefits, partially offset by nondeductible stock option related expenses.

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.

 

Uncertain tax positions

We had liabilities of $3,206 and $2,894 for unrecognized tax benefits related to various federal, state and local income tax matters as of September 30, 2019 and March 31, 2019, respectively. If recognized, this amount would reduce our effective tax rate.

We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2015. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2014. 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.