Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

The components of the Company’s income tax provision (benefit) for the fiscal years ended March 31, 2017, 2016 and 2015 are as follows:

		2017				2016			2015
						(in $000's)
Income before provision for income taxes:
United States	$		78,172		$		54,406	$		22,243
Foreign			13,170				11,432			6,522
Income before income taxes	$		91,342		$		65,838	$		28,765

Current tax expense:
Federal	$		7,313		$		1,690	$		464
State			5,045				2,113			424
Foreign			1,066				1,592			1,283
			13,424				5,395			2,171
Deferred tax expense (benefit):
Federal			23,008				18,769			(66,140	)
State			(349	)			1,284			(13,430	)
Foreign			3,144				2,243			(7,524	)
			25,803				22,296			(87,094	)
Total income tax provision (benefit)	$		39,227		$		27,691	$		(84,923	)

Components of Income Tax Provision (Benefit)

The components of the Company’s income tax provision (benefit) for the fiscal years ended March 31, 2017, 2016 and 2015 are as follows:

		2017				2016			2015
						(in $000's)
Income before provision for income taxes:
United States	$		78,172		$		54,406	$		22,243
Foreign			13,170				11,432			6,522
Income before income taxes	$		91,342		$		65,838	$		28,765

Current tax expense:
Federal	$		7,313		$		1,690	$		464
State			5,045				2,113			424
Foreign			1,066				1,592			1,283
			13,424				5,395			2,171
Deferred tax expense (benefit):
Federal			23,008				18,769			(66,140	)
State			(349	)			1,284			(13,430	)
Foreign			3,144				2,243			(7,524	)
			25,803				22,296			(87,094	)
Total income tax provision (benefit)	$		39,227		$		27,691	$		(84,923	)

Components of Net Deferred Taxes

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

	March 31,
	2017			2016
	(in $000's)
Deferred tax assets
NOL carryforwards and tax credit carryforwards	$	8,814		$	34,305
Stock-based compensation		16,560			14,879
Nondeductible reserves and accruals		10,303			8,550
Amortizable intangibles other than goodwill		1,846			2,420
Capitalized research and development		—			442
Foreign NOL carryforwards		13,634			17,635
Deferred revenue		4,308			3,351
Depreciation		289			353
Other, net		1,308			1,802
	57,062			83,737
Deferred tax liabilities
Indefinite lived intangibles		(9,444	)		(8,480	)
In-process research and development		(4,374	)		(4,649	)
Domestic deferred tax liability on foreign NOL carryforwards		(6,836	)		(10,488	)
		(20,654	)		(23,617	)

Net deferred tax assets		36,408			60,120
Valuation allowance		(2,468	)		(2,418	)
Net deferred tax assets	$	33,940		$	57,702

Reported as:
Long-term deferred tax assets, net	$	34,723		$	58,534
Long-term deferred tax liabilities		(783	)		(832	)
Net deferred tax assets	$	33,940		$	57,702

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 fiscal years ended March 31, 2017, 2016, and 2015:

	2017				2016				2015
Statutory income tax rate		35.0		%		35.0		%		35.0		%
Increase (decrease) resulting from:
Change in valuation allowance		0.2				0.7				(342.8	)
Credits		(3.3	)			(4.1	)			(1.9	)
Foreign taxes		2.0				2.5				4.5
State taxes, net		3.8				3.7				4.0
Permanent differences		3.3				3.0				3.9
Stock based compensation		0.2				0.3				0.3
Rate differential on foreign operations		0.1				-				0.2
Other		1.7				1.0				1.6
Effective tax rate		43.0		%		42.1		%		(295.2	)	%

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2017, 2016 and 2015 were as follows:

		2017			2016				2015
		(in $000's)
Valuation allowance as of beginning of year	$		2,418	$		2,912		$		102,093
Decreases recorded as benefit to income tax provision			-			(1,171	)			(101,468	)
Increases due to foreign net operating loss in certain foreign jurisdictions			50			677				2,287
Valuation allowance as of end of year	$		2,468	$		2,418		$		2,912