INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2013

INCOME TAXES [Abstract]

Income before Income Taxes and Income Tax Provision

Income before income tax provision and the income tax provision include the following (in thousands):

	Year Ended March 31,
	2013			2012			2011
Income before income tax provision:
U.S.	$	(40,907	)	$	103,750		$	133,239
Foreign		41,951			24,524			21,537
Total income before income tax provision	$	1,044		$	128,274		$	154,776
Income tax provision
Current:
U.S. Federal	$	24,939		$	16,357		$	22,734
Foreign		10,520			6,247			10,193
U.S. State		(3,741	)		(267	)		1,096
Total current tax provision		31,718			22,337			34,023
Deferred:
U.S. Federal		(26,351	)		17,404			12,184
Foreign		7,212			3,076			(527	)
U.S. State		5,716			(2,914	)		1,655
Total deferred tax provision (benefit)		(13,423	)		17,566			13,312
Total income tax provision	$	18,295		$	39,903		$	47,335

Effective Income Tax Rate Reconciliation

The Company's income tax expense differed from the amount computed on pre-tax income at the U.S. federal income tax rate of 35% for the following reasons (in thousands):

	Year Ended March 31,
	2013			2012			2011
Federal income tax at statutory rates	$	365		$	44,896		$	54,172
Increase (decrease) in taxes:
State income taxes, net		708			3,848			1,690
Foreign tax rate differential		(3,625	)		(1,661)			(1,225	)
Taxes relating to foreign operations		4,637			3,745			2,685
Settlement of prior year tax matters		(565	)		(2,416	)		(2,463	)
Tax credits (1)		(3,672	)		(2,127	)		(4,569	)
Revaluation of deferred taxes		2,029
Non-deductible intangible amortization		2,090			1,975			408
Valuation allowance (2)		2,591			(7,174	)		(1,483	)
Goodwill impairment (3)		17,202
Non-deductible expenses		3,206			3,510			2,420
Domestic production deduction		(2,404	)		(2,301	)		(2,619	)
Other, net		(4,267	)		(2,392	)		(1,681	)
Provision for income taxes	$	18,295		$	39,903		$	47,335

(1) During fiscal 2013, our tax credits primarily related to the U.S. Research and Experimentation tax credit ("R&D credit") including the impact of retroactively reinstating the credit to January 1, 2012. During fiscal 2011, our tax credits primarily related to (1) the R&D credit including the impact of retroactively reinstating the credit to January 1, 2010; and (2) settlement of R&D credits related to fiscal 2007 through fiscal 2009 tax periods with the Internal Revenue Service.

(2) During fiscal 2012, as a result of the State of Michigan amending the Income Tax Act, the Company released a valuation allowance of $4.8 million related to Brownfield Redevelopment tax credit carryforward deferred tax assets ("Brownfield tax credit carryforward asset"). The Company adjusted the carrying value of the Brownfield tax credit carryforward asset to its more likely than not realizable value.

(3) The majority of the goodwill impairment was non-deductible. See note 7 for information regarding the impairment evaluation on goodwill and other intangible assets at March 31, 2013.

Deferred Tax Assets and Liabilities

Temporary differences and carryforwards that give rise to a significant portion of deferred tax assets and liabilities were as follows (in thousands):

	March 31,
	2013			2012
Deferred tax assets:
Deferred revenue	$	31,892		$	29,375
Amortization of intangible assets		10,218			13,039
Accrued expenses		37,024			34,177
Net operating loss carryforwards		16,097			23,150
Other tax carryforwards		54,014			45,705
Other		6,572			9,159
Total deferred tax assets before valuation allowance		155,817			154,605
Less: Valuation allowance		35,581			32,990
Net deferred tax assets		120,236			121,615
Deferred tax liabilities:
Amortization of intangible assets		59,742			68,956
Capitalized research and development costs		24,988			20,501
Depreciation		25,380			30,727
Other		4,404			5,255
Total deferred tax liabilities		114,514			125,439
Net deferred tax assets (liabilities)	$	5,722		$	(3,824	)
Current deferred tax assets	$	37,618		$	37,665
Long-term deferred tax assets		31,754			40,672
Long-term deferred tax liabilities		(63,650	)		(82,161	)
Net deferred tax assets (liabilities)	$	5,722		$	(3,824	)

Net Operating Losses, Capital Losses and Tax Credit Carryforwards

At March 31, 2013, the Company had net operating losses, capital losses and tax credit carryforwards for income tax purposes of $70.1 million that expire in the tax years as follows (in thousands):

	March 31,
	2013		Expiration
U.S. federal and state net operating losses	$	7,050		2020 - 2033
Non-U.S. net operating losses		8,547	Indefinite
Non-U.S. net operating losses		507		2020
Non-U.S. capital loss carryforwards		28,952	Indefinite
U.S. federal and state tax credit carryforwards		25,064		2014 - 2028
	$	70,120

Unrecognized Tax Benefits Reconciliation

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended March 31, 2013, 2012 and 2011 (in thousands):

	Year Ended March 31,
	2013			2012			2011
Gross unrecognized tax benefit at April 1,	$	20,663		$	21,114		$	22,057
Gross increases to tax positions for prior periods		2,441			1,859			5,045
Gross decreases to tax positions for prior periods		(3,864	)		(1,515	)		(6,441	)
Gross increases to tax positions for current period		1,609			2,623			3,365
Foreign tax rate differential for prior period		(3	)		64			10
Settlements		(790	)		(2,416	)		(1,896	)
Lapse of statute of limitations		(2,271	)		(1,066	)		(1,026	)
Gross unrecognized tax benefit at March 31,	$	17,785		$	20,663		$	21,114