Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Provision

The components of the Company’s income tax provision are as follows:

	Fiscal Years Ended March 31,
	2022			2021			2020
				(in thousands)
Income (loss) before provision for income taxes:
United States	$	260,626		$	249,204		$	214,825
Foreign		(70,066	)		39,016			42,000
Income before income taxes		190,560			288,220			256,825
Current tax expense:
Federal		25,893			8,624			—
State		9,184			12,379			6,563
Foreign		16,565			12,312			14,300
		51,642			33,315			20,863
Deferred tax expense (benefit):
Federal		5,376			30,413			33,239
State		(1,720	)		(2,382	)		1,584
Foreign		(1,243	)		1,349			(1,870	)
		2,413			29,380			32,953
Total income tax provision	$	54,055		$	62,695		$	53,816

Components of Net Deferred Taxes

The components of the Company’s net deferred taxes were as follows:

	March 31, 2022			March 31, 2021
	(in thousands)
Deferred tax assets
Net operating loss and tax credit carryforwards	$	29,802		$	27,893
Stock-based compensation		14,608			13,790
Nondeductible reserves and accruals		15,441			12,097
Foreign net operating loss carryforwards		9,107			6,856
Deferred revenue		5,830			5,522
Other, net		312			363
	$	75,100		$	66,521
Deferred tax liabilities
Goodwill		(7,829	)		(7,897	)
In-process research and development		(12,063	)		(12,496	)
Depreciation		(14,197	)		(11,747	)
Basis differences on other investments		(11,442	)		(7,766	)
Domestic deferred tax liability on foreign net operating loss carryforwards		(393	)		(415	)
		(45,924	)		(40,321	)
Net deferred tax assets		29,176			26,200
Valuation allowance		(19,405	)		(15,667	)
Net deferred tax assets	$	9,771		$	10,533
Reported as:
Deferred tax assets	$	10,552		$	11,380
Deferred tax liabilities		(781	)		(847	)
Net deferred tax assets	$	9,771		$	10,533

Differences Between Statutory and Effective Income Tax Rate

The significant differences between the statutory and effective income tax rate consist of the following items:

	Fiscal Years Ended March 31,
	2022				2021				2020
Statutory income tax rate		21.0		%		21.0		%		21.0		%
Increase (decrease) resulting from:
Credits		(11.3	)			(6.0	)			(10.8	)
Non-deductible acquired IPR&D		10.5				—				—
Rate differential on foreign operations		6.5				4.1				3.2
Excess tax benefits from stock-based awards		(4.8	)			(3.3	)			(5.2	)
State taxes, net		4.3				3.2				3.1
Non-deductible officers’ compensation		2.0				1.4				1.2
Permanent differences		0.9				1.0				3.8
Change in valuation allowance		0.3				0.3				5.3
Other		(1.0	)			0.1				(0.6	)
Effective tax rate		28.4		%		21.8		%		21.0		%

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets were as follows:

	Fiscal Years Ended March 31,
	2022		2021		2020
	(in thousands)
Balance at beginning of year	$	15,667	$	15,170	$	1,302
Increase		3,738		497		13,868
Balance at end of year	$	19,405	$	15,667	$	15,170