Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Income before Income Taxes

The components of the Company’s income tax benefit (provision) for the years ended March 31, 2015, 2014 and 2013 are as follows:

	2015			2014			2013
	(in $000’s)
Income before income taxes:
United States	$	22,243		$	4,267		$	10,202
Foreign		6,522			4,263			6,660
Income before income taxes	$	28,765		$	8,530		$	16,862
Current tax expense (benefit):
Federal	$	464		$	(100	)	$	97
State		424			(106	)		—
Foreign		1,283			525			996
		2,171			319			1,093
Deferred tax (benefit) expense:
Federal		(66,140	)		825			825
State		(13,430	)		35			(70	)
Foreign		(7,524	)		—			—
		(87,094	)		860			755
Total income tax (benefit) provision	$	(84,923	)	$	1,179		$	1,848

Components of Income Tax Benefit (Provision)

The components of the Company’s income tax benefit (provision) for the years ended March 31, 2015, 2014 and 2013 are as follows:

	2015			2014			2013
	(in $000’s)
Income before income taxes:
United States	$	22,243		$	4,267		$	10,202
Foreign		6,522			4,263			6,660
Income before income taxes	$	28,765		$	8,530		$	16,862
Current tax expense (benefit):
Federal	$	464		$	(100	)	$	97
State		424			(106	)		—
Foreign		1,283			525			996
		2,171			319			1,093
Deferred tax (benefit) expense:
Federal		(66,140	)		825			825
State		(13,430	)		35			(70	)
Foreign		(7,524	)		—			—
		(87,094	)		860			755
Total income tax (benefit) provision	$	(84,923	)	$	1,179		$	1,848

Components of Net Deferred Taxes

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

	March 31,
	2015			2014
	(in $000’s)
Deferred tax assets
NOL carryforwards and tax credit carryforwards	$	60,081		$	72,430
Stock-based compensation		10,568			10,519
Nondeductible reserves and accruals		7,573			6,775
Amortizable intangibles other than goodwill		2,993			3,470
Capitalized research and development		1,597			3,208
Foreign NOL carryforwards		19,617			2,705
Deferred revenue		2,669			1,767
Depreciation		276			561
Other, net		1,298			658
		106,672			102,093
Deferred tax liabilities
Indefinite lived intangibles		(7,530	)		(6,415	)
In-process research and development		(4,443	)		—
Domestic deferred tax liability on foreign NOL carryforwards		(12,276	)		—
		(24,249	)		(6,415	)
Net deferred tax assets		82,423			95,678
Valuation allowance		(2,912	)		(102,093	)
Net deferred tax assets	$	79,511		$	(6,415	)
Reported as:
Current deferred tax assets, net	$	35,100		$	—
Long-term deferred tax assets, net		45,206			—
Long-term deferred tax liabilities		(795	)		(6,415	)
Net deferred tax assets	$	79,511		$	(6,415	)

Differences Between Federal Statutory Income Tax Rate and Effective Tax Rates

A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows for the years ended March 31, 2015, 2014, and 2013:

	2015			2014			2013
Statutory income tax rate		35.0	%		34.0	%		34.0	%
(Decrease) increase resulting from:
Change in valuation allowance		(342.8	)		(53.7	)		(11.5	)
Credits		(1.9	)		(20.1	)		(17.0	)
Foreign taxes		4.5			—			—
State taxes, net		4.0			12.9			(6.9	)
Permanent differences		3.9			0.4			—
Stock based compensation		0.3			0.9			0.4
Rate differential on foreign operations		0.2			31.1			9.7
Expiry of state NOL carryforwards		—			—			2.1
Other		1.6			8.4			0.2
Effective tax rate		(295.2	)%		13.9	%		11.0	%

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets during the years ended March 31, 2015 and 2014 were as follows:

	2015			2014
	(in $000’s)
Valuation allowance as of beginning of year	$	102,093		$	106,670
Decreases recorded as benefit to income tax provision		(101,468	)		(4,577	)
Increases due to foreign net operating loss in certain foreign jurisdictions		2,287			—
Valuation allowance as of end of year	$	2,912		$	102,093