Income Taxes

3 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

The benefit of income taxes was $247 in the three months ended June 30, 2022, reflecting an effective tax rate benefit of 27.4%. The provision for income taxes was $559 in the three months ended June 30, 2021, reflecting an effective tax rate of 16.4%.

The decrease in the effective tax rate for the three months ended June 30, 2022 compared to the prior period was primarily due to the impact of reduced pre-tax book income impact on rate reconciling items and the increased net benefit of discrete items in the current period compared to the prior year, offset by a net decrease of the research and development credit, foreign rate differential benefit, and higher nondeductible officer compensation.

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 $6,097 and $6,112 related to various federal, state, and local income tax matters as of June 30, 2022 and March 31, 2022, respectively. If recognized, this amount would reduce our effective tax rate.

We are subject to taxation in federal, various state, Indian, and United Kingdom jurisdictions. We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2018. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2017. 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.