Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

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,
	2022			2021			2020
Current:
Federal taxes	$	1,090		$	6,562		$	408
State taxes		1,081			1,226			858
Foreign taxes		1,192			826			874
Total current taxes		3,363			8,614			2,140
Deferred:
Federal taxes	$	43		$	(6,053	)	$	(3,578	)
State taxes		(379	)		(2,068	)		(1,682	)
Foreign taxes		551			(733	)		(119	)
Total deferred taxes		215			(8,854	)		(5,379	)
Provision for (benefit of) income taxes	$	3,578		$	(240	)	$	(3,239	)

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,
	2022			2021			2020
Tax expense at United States federal statutory rate ⁽¹⁾	$	1,091		$	1,948		$	895
Items affecting federal income tax rate:
Executive compensation limitation		2,068			775			260
Impact of uncertain tax positions		1,620			278			1,062
Share-based compensation		1,059			865			125
State income taxes		950			572			687
Impact of foreign operations		356			(1,203	)		(683	)
Impact of amended returns		163			(9	)		67
Impact of deferred adjustments		88			(251	)		159
Impact of audit settlements		—			(56	)		(61	)
Acquisition expenses		—			—			229
Non-deductible expenses		(27	)		(258	)		643
Return to provision true-ups		(152	)		(15	)		(1,868	)
Impact of valuation allowance		(882	)		563			(49	)
Research and development tax credits		(2,756	)		(3,449	)		(4,705	)
Provision for (benefit of) income taxes	$	3,578		$	(240	)	$	(3,239	)

⁽¹⁾	^{Federal statutory rate was 21.0% for March 31, 2022, 2021 and 2020.}

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, 2022			March 31, 2021
Deferred tax assets:
Compensation and benefits	$	17,494		$	19,541
Deferred revenue		9,245			8,325
Research and development credit		7,165			7,706
Net operating losses		6,018			7,652
Operating lease liabilities		3,774			6,204
Foreign deferred taxes		1,755			2,306
Allowance for credit losses		1,658			1,819
Accounts receivable		511			—
Accrued legal settlement		—			905
Total deferred tax assets		47,620			54,458
Deferred tax liabilities:
Prepaid expense	$	(10,895	)	$	(9,396	)
Intangibles assets		(8,703	)		(9,451	)
Operating right-of-use assets		(1,713	)		(3,003	)
Capitalized software		(647	)		(4,659	)
Accelerated depreciation		(640	)		(1,339	)
Other		(630	)		(611	)
Accounts receivable		—			(510	)
Total deferred tax liabilities		(23,228	)		(28,969	)
Valuation allowance		(5,133	)		(6,015	)
Deferred tax assets, net	$	19,259		$	19,474

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 and deferred income taxes, net in our consolidated balance sheet, is as follows:

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
Additions for prior year tax positions		1,184
Additions for current year tax positions		763
Reductions for prior year tax positions		(261	)
Balance as of March 31, 2022	$	6,112