Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

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

	Fiscal Years Ended March 31,
	2021			2020			2019
				(in $000's)
Income before provision for income taxes:
United States	$	249,204		$	214,825		$	223,340
Foreign		39,016			42,000			40,020
Income before income taxes		288,220			256,825			263,360

Current tax expense:
Federal		8,624			—			—
State		12,379			6,563			564
Foreign		12,312			14,300			11,525
		33,315			20,863			12,089
Deferred tax expense (benefit):
Federal		30,413			33,239			(7,153	)
State		(2,382	)		1,584			(1,503	)
Foreign		1,349			(1,870	)		911
		29,380			32,953			(7,745	)
Total income tax provision	$	62,695		$	53,816		$	4,344

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

	March 31, 2021			March 31, 2020
	(in $000's)
Deferred tax assets
Net operating loss and tax credit carryforwards	$	27,893		$	50,604
Stock-based compensation		13,790			13,607
Nondeductible reserves and accruals		12,097			9,570
Foreign net operating loss carryforwards		6,856			6,778
Deferred revenue		5,522			4,404
Depreciation and amortization		51			114
Other, net		312			949
	$	66,521		$	86,026
Deferred tax liabilities
Goodwill		(7,897	)		(7,843	)
In-process research and development		(12,496	)		(4,564	)
Depreciation		(11,747	)		(9,211	)
Basis differences on other investments		(7,766	)		(6,124	)
Domestic deferred tax liability on foreign net operating loss carryforwards		(415	)		(584	)
		(40,321	)		(28,326	)

Net deferred tax assets		26,200			57,700
Valuation allowance		(15,667	)		(15,170	)
Net deferred tax assets	$	10,533		$	42,530

Reported as:
Deferred tax assets	$	11,380		$	43,336
Deferred tax liabilities		(847	)		(806	)
Net deferred tax assets	$	10,533		$	42,530

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

	Fiscal Years Ended March 31,
	2021				2020				2019
Statutory income tax rate		21.0		%		21.0		%		21.0		%
Increase (decrease) resulting from:
Credits		(6.0	)			(10.8	)			(1.5	)
Rate differential on foreign operations		4.1				3.2				0.2
Excess tax benefits from stock-based awards		(3.3	)			(5.2	)			(24.1	)
State taxes, net		3.2				3.1				0.1
Permanent differences		2.4				5.0				1.8
Change in valuation allowance		0.3				5.3				(0.4	)
Foreign taxes		—				—				4.1
Other		0.1				(0.6	)			0.4
Effective tax rate		21.8		%		21.0		%		1.6		%

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