Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

The components of the Company’s income tax provision for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows:

	Fiscal Years Ended March 31,
	2019			2018			2017
				(in $000's)
Income before provision for income taxes:
United States	$	223,340		$	134,006		$	78,172
Foreign		40,020			26,431			13,170
Income before income taxes		263,360			160,437			91,342

Current tax expense:
Federal		—			752			7,313
State		564			1,491			5,045
Foreign		11,525			3,400			1,066
		12,089			5,643			13,424
Deferred tax (benefit) expense:
Federal		(7,153	)		38,848			23,008
State		(1,503	)		(1,014	)		(349	)
Foreign		911			4,790			3,144
		(7,745	)		42,624			25,803
Total income tax provision	$	4,344		$	48,267		$	39,227

Components of Income Tax Provision

The components of the Company’s income tax provision for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows:

	Fiscal Years Ended March 31,
	2019			2018			2017
				(in $000's)
Income before provision for income taxes:
United States	$	223,340		$	134,006		$	78,172
Foreign		40,020			26,431			13,170
Income before income taxes		263,360			160,437			91,342

Current tax expense:
Federal		—			752			7,313
State		564			1,491			5,045
Foreign		11,525			3,400			1,066
		12,089			5,643			13,424
Deferred tax (benefit) expense:
Federal		(7,153	)		38,848			23,008
State		(1,503	)		(1,014	)		(349	)
Foreign		911			4,790			3,144
		(7,745	)		42,624			25,803
Total income tax provision	$	4,344		$	48,267		$	39,227

Components of Net Deferred Taxes

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


	March 31, 2019			March 31, 2018
	(in $000's)
Deferred tax assets
Net operating loss and tax credit carryforwards	$	62,835		$	48,724
Stock-based compensation		15,488			13,271
Nondeductible reserves and accruals		9,739			8,290
Foreign net operating loss carryforwards		7,360			9,598
Deferred revenue		3,677			3,770
Depreciation and amortization		485			826
Other, net		128			822
	$	99,712		$	85,301
Deferred tax liabilities
Goodwill		(7,136	)		(6,787	)
In-process research and development		(4,593	)		(5,045	)
Depreciation		(2,175	)		(1,011	)
Basis differences on other investments		(7,146	)		—
Domestic deferred tax liability on foreign net operating loss carryforwards		(680	)		(963	)
		(21,730	)		(13,806	)

Net deferred tax assets		77,982			71,495
Valuation allowance		(1,302	)		(1,652	)
Net deferred tax assets	$	76,680		$	69,843

Reported as:
Long-term deferred tax assets, net	$	77,502		$	70,746
Long-term deferred tax liabilities		(822	)		(903	)
Net deferred tax assets	$	76,680		$	69,843

Differences Between Statutory and Effective Income Tax Rate

The significant differences between the statutory and effective income tax rate for the years ended March 31, 2019, 2018, and 2017 consist of the following items:

	Fiscal Years Ended March 31,
	2019				2018				2017
Statutory income tax rate		21.0		%		31.5		%		35.0		%
Increase (decrease) resulting from:
Excess tax benefits from stock-based awards		(24.1	)			(17.2	)			0.2
Foreign taxes		4.1				2.2				2.0
Permanent differences		1.8				2.4				3.3
Credits		(1.5	)			(4.9	)			(3.3	)
State taxes, net		0.1				2.0				3.8
Change in valuation allowance		(0.4	)			0.5				0.2
Effect of the Tax Reform Act on net deferred tax assets		—				13.0				—
Rate differential on foreign operations		0.2				—				0.1
Other		0.4				0.6				1.7
Effective tax rate		1.6		%		30.1		%		43.0		%

Changes in Valuation Allowance for Deferred Tax Assets

Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2019, 2018 and 2017 were as follows:

	Fiscal Years Ended March 31,
	2019			2018			2017
	(in $000's)
Balance at beginning of year	$	1,652		$	2,468		$	2,418
Increases		—			325			50
Decreases		(350	)		(1,141	)		—
Balance at end of year	$	1,302		$	1,652		$	2,468