Income Taxes

9 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

The following table compares our income tax expense and effective tax rates for the three and nine months ended December 31, 2019 and 2018:

	Three Months Ended December 31,						Nine Months Ended December 31,
(Dollars in thousands)	2019			2018			2019			2018
Income tax expense	$	95		$	182		$	161		$	186
Effective tax rate		(3.8	)%		(4.7	)%		(2.3	)%		(2.0	)%

For the three and nine months ended December 31, 2019 and 2018, the effective tax rate was different than the statutory rate due primarily to the recognition of net operating losses as deferred tax assets in the U.S. and certain foreign jurisdictions, which were offset by increases in the valuation allowance, certain foreign and state tax effects and other U.S. permanent book to tax differences.

Because of our losses in prior periods, we have recorded a valuation allowance offsetting substantially all of our deferred tax assets in the U.S. and certain foreign jurisdictions, as management believes that it is more likely than not that we will not realize the benefits of these deductible differences. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible.