Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Summary of Provision for (Benefit of) Income Taxes

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

	Fiscal Year Ended March 31,
	2021			2020			2019
Current:
Federal taxes	$	6,562		$	408		$	1,159
State taxes		1,226			858			(238	)
Foreign taxes		826			874			744
Total current taxes		8,614			2,140			1,665
Deferred:
Federal taxes	$	(6,053	)	$	(3,578	)	$	3,752
State taxes		(2,068	)		(1,682	)		(428	)
Foreign taxes		(733	)		(119	)		(195	)
Total deferred taxes		(8,854	)		(5,379	)		3,129
Provision for (benefit of) income taxes	$	(240	)	$	(3,239	)	$	4,794

Summary of Provision for (Benefit of) 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,
	2021			2020			2019
Tax expense at United States federal statutory rate ⁽¹⁾	$	1,948		$	895		$	6,150
Items affecting federal income tax rate:
Research and development tax credits		(3,449	)		(4,705	)		(4,647	)
Impact of foreign operations		(1,203	)		(683	)		(304	)
Impact of deferred adjustments		(251	)		159			132
Impact of audit settlements		(56	)		(61	)		967
Return to provision true-ups		(15	)		(1,868	)		(149	)
Impact of amended returns		(9	)		67			391
Acquisition expenses		—			229			(2	)
Foreign transition tax - Tax Reform		—			—			210
Revaluation of deferred tax balances - Tax Reform		—			—			231
Impact of uncertain tax positions		278			1,062			375
Non-deductible expenses		517			903			140
Impact of valuation allowance		563			(49	)		(33	)
State income taxes		572			687			1,502
Compensation		865			125			(169	)
Provision for (benefit of) income taxes	$	(240	)	$	(3,239	)	$	4,794

⁽¹⁾	^{Federal statutory rate was 21.0% for March 31, 2021, 2020 and 2019.}

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, 2021			March 31, 2020
Deferred tax assets:
Compensation and benefits	$	19,541		$	11,966
Deferred revenue		8,325			10,546
Research and development credit		7,706			9,643
Net operating losses		7,652			8,812
Operating lease liabilities		6,204			11,430
Foreign deferred taxes		2,306			1,574
Allowance for doubtful accounts		1,819			1,819
Accrued legal settlement		905			—
Total deferred tax assets		54,458			55,790
Deferred tax liabilities:
Intangibles assets	$	(9,451	)	$	(12,477	)
Prepaid expense		(9,396	)		(7,842	)
Capitalized software		(4,659	)		(9,931	)
Operating right-of-use assets		(3,003	)		(6,667	)
Accelerated depreciation		(1,339	)		(1,405	)
Other		(611	)		(145	)
Accounts receivable		(510	)		(1,251	)
Total deferred tax liabilities		(28,969	)		(39,718	)
Valuation allowance		(6,015	)		(5,452	)
Deferred tax assets, net	$	19,474		$	10,620

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, 2019	$	2,894
Additions for prior year tax positions		1,372
Additions for current year tax positions		781
Reductions for prior year tax positions		(855	)
Balance as of March 31, 2020		4,192
Additions for prior year tax positions		220
Additions for current year tax positions		635
Reductions for prior year tax positions		(621	)
Balance as of March 31, 2021	$	4,426