Income Taxes (Tables)

12 Months Ended

Mar. 31, 2018

The components of the Company’s income tax provision for the fiscal years ended March 31, 2018, 2017 and 2016 are as follows:

		2018				2017				2016
						(in $000's)
Income before provision for income taxes:
United States	$		134,006		$		78,172		$		54,406
Foreign			26,431				13,170				11,432
Income before income taxes	$		160,437		$		91,342		$		65,838

Current tax expense:
Federal	$		752		$		7,313		$		1,690
State			1,491				5,045				2,113
Foreign			3,400				1,066				1,592
			5,643				13,424				5,395
Deferred tax expense (benefit):
Federal			38,848				23,008				18,769
State			(1,014	)			(349	)			1,284
Foreign			4,790				3,144				2,243
			42,624				25,803				22,296
Total income tax provision	$		48,267		$		39,227		$		27,691

Components of Income Tax Provision (Benefit)

The components of the Company’s income tax provision for the fiscal years ended March 31, 2018, 2017 and 2016 are as follows:

		2018				2017				2016
						(in $000's)
Income before provision for income taxes:
United States	$		134,006		$		78,172		$		54,406
Foreign			26,431				13,170				11,432
Income before income taxes	$		160,437		$		91,342		$		65,838

Current tax expense:
Federal	$		752		$		7,313		$		1,690
State			1,491				5,045				2,113
Foreign			3,400				1,066				1,592
			5,643				13,424				5,395
Deferred tax expense (benefit):
Federal			38,848				23,008				18,769
State			(1,014	)			(349	)			1,284
Foreign			4,790				3,144				2,243
			42,624				25,803				22,296
Total income tax provision	$		48,267		$		39,227		$		27,691

Components of Net Deferred Taxes

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

	March 31,
	2018			2017
	(in $000's)
Deferred tax assets
Non-operating loss and tax credit carryforwards	$	48,724		$	8,814
Stock-based compensation		13,271			16,560
Nondeductible reserves and accruals		8,290			10,303
Foreign non-operating loss carryforwards		9,598			13,634
Deferred revenue		3,770			4,308
Depreciation and amortization		826			2,135
Other, net		822			1,308
	85,301			57,062
Deferred tax liabilities
Goodwill		(6,787	)		(9,444	)
In-process research and development		(5,045	)		(4,374	)
Depreciation		(1,011	)		—
Domestic deferred tax liability on foreign non-operating loss carryforwards		(963	)		(6,836	)
		(13,806	)		(20,654	)

Net deferred tax assets		71,495			36,408
Valuation allowance		(1,652	)		(2,468	)
Net deferred tax assets	$	69,843		$	33,940

Reported as:
Long-term deferred tax assets, net	$	70,746		$	34,723
Long-term deferred tax liabilities		(903	)		(783	)
Net deferred tax assets	$	69,843		$	33,940

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, 2018, 2017, and 2016:

	2018				2017				2016
Statutory income tax rate		31.5		%		35.0		%		35.0		%
(Decrease) increase resulting from:
Change in valuation allowance		0.5				0.2				0.7
Credits		(4.9	)			(3.3	)			(4.1	)
Foreign taxes		2.2				2.0				2.5
State taxes, net		2.0				3.8				3.7
Permanent differences		2.4				3.3				3.0
Stock-based compensation		(17.2	)			0.2				0.3
Rate differential on foreign operations		—				0.1				—
Effect of the Tax Reform Act on net deferred tax assets		13.0				—				—
Other		0.6				1.7				1.0
Effective tax rate		30.1		%		43.0		%		42.1		%

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2018, 2017 and 2016 were as follows:

		2018				2017			2016
		(in $000's)
Balance at beginning of year	$		2,468		$		2,418	$		2,912
Increases			325				50			677
Decreases			(1,141	)			—			(1,171	)
Balance at end of year	$		1,652		$		2,468	$		2,418