Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Schedule of components of income (loss) before income taxes and equity loss from NEC TOKIN

The components of Income (loss) from continuing operations before income taxes and equity loss from TOKIN are as follows (amounts in thousands):



	Fiscal Years Ended March 31,
	2017		2016			2015
Domestic (U.S.)	$	653	$	(38,581	)	$	(26,238	)
Foreign (Outside U.S.)	9,983		7,364			14,112
Total	$	10,636	$	(31,217	)	$	(12,126	)

Schedule of the provision (benefit) for income tax expense

The provision (benefit) for Income tax expense is as follows (amounts in thousands):



	Fiscal Years Ended March 31,
	2017			2016			2015
Current:
Federal	$	—		$	—		$	—
State and local	62			95			(92		)
Foreign	4,247			5,416			7,403
Total current income tax expense from continuing operations	4,309			5,511			7,311
Deferred:
Federal	(6		)	(647		)	270
State and local	(97		)	172			39
Foreign	84			970			(2,393		)
Deferred tax expense (benefit) from continuing operations	(19		)	495			(2,084		)
Provision for income taxes	$	4,290		$	6,006		$	5,227

Schedule of reconciliation of the statutory federal income tax rate to the effective income tax rate

Differences between the provision for income taxes on earnings from continuing operations and the amount computed using the U.S. Federal statutory income tax rate are as follows (amounts in thousands):



	Fiscal Years Ended March 31,
	2017			2016			2015
Amount computed using the statutory rate of 35%	$	3,722		$	(10,926	)	$	(4,245	)
Change in U.S. valuation allowance	(7,080		)	4,099			(19,691		)
Unremitted earnings of foreign subsidiaries	2,127			(231		)	18,502
Effect of prior year adjustments (1)	1,789			(286		)	5,766
Expired foreign tax credits	4,766			—			—
Effect of business combination	—			(648		)	—
Taxable foreign source income	1,835			2,415			4,660
(Put)/call option valuation impact	(3,745		)	7,381			—
Other non-deductible expenses	(937		)	126			217
State income taxes, net of federal taxes	(35		)	267			(53		)
Change in foreign operations tax exposure reserves	108			998			1,119
Change in foreign tax law	144			981			—
Change in foreign operations valuation allowance (2)	983			(200		)	1,378
Other effect of foreign operations	613			2,030			(2,426		)
Provision for income taxes	$	4,290		$	6,006		$	5,227


(1)	The effect of prior year adjustments is offset by a full valuation allowance resulting in no impact on the provision for income taxes.


(2)	The change in foreign operations valuation allowance excludes other comprehensive income and currency translation adjustments of $0.9 million, $0.6 million, and $(3.4) million for fiscal years ended 2017, 2016 and 2015, respectively which has no impact on the provision for income taxes.

Schedule of annual activities included in the deferred tax valuation allowance

The following table presents the annual activities included in the deferred tax valuation allowance (amounts in thousands):



	Valuation Allowance for Deferred Tax Assets
Balance at March 31, 2014	$	189,276
Charge to costs and expenses	(19,900		)
Deductions	(1,782		)
Balance at March 31, 2015	167,594
Charge to costs and expenses	4,072
Deductions	(749		)
Balance at March 31, 2016	170,917
Charge to costs and expenses	(2,094		)
Deductions	(4,925		)
Balance at March 31, 2017	$	163,898

Schedule of the components of deferred tax assets and liabilities

The components of deferred tax assets and liabilities are as follows (amounts in thousands):



	March 31,
	2017			2016
Deferred tax assets:
Net operating loss carry forwards	$	165,161		$	173,041
Sales allowances and inventory reserves	14,910			16,918
Medical and employee benefits	16,336			11,234
Tax credits	4,954			9,840
Stock-based compensation	2,501			2,576
Other	2,357			2,988
Total deferred tax assets before valuation allowance	206,219			216,597
Less valuation allowance	(163,898		)	(170,917		)
Total deferred tax assets	42,321			45,680
Deferred tax liabilities:
Unremitted earnings of subsidiaries	(20,265		)	(18,271		)
Depreciation and differences in basis	(7,576		)	(11,718		)
Amortization of intangibles and debt discounts	(6,207		)	(7,107		)
Non-amortized intangibles	(2,549		)	(2,556		)
Other	(501		)	(451		)
Total deferred tax liabilities	(37,098		)	(40,103		)
Net deferred tax assets	$	5,223		$	5,577

The change in net deferred income tax asset (liability) for the current year is presented below (amounts in thousands):



Balance at March 31, 2016	$	5,577
Deferred income taxes related to continuing operations	19
Deferred income taxes related to other comprehensive income	181
Foreign currency translation	(554		)
Balance at March 31, 2017	$	5,223

Schedule of tax credit carryforwards available

At March 31, 2017, the U.S. consolidated group of companies had the following tax credit carryforwards available (amounts in thousands):

Schedule of reconciliation of gross unrecognized tax benefits (excluding interest and penalties)

At March 31, 2017, the Company had $7.4 million of unrecognized tax benefits. A reconciliation of gross unrecognized tax benefits (excluding interest and penalties) is as follows (amounts in thousands):



	Fiscal Years Ended March 31,
	2017			2016			2015
Beginning of fiscal year	$	7,103		$	6,377		$	5,691
Additions for tax positions of the current year	762			763			1,115
Reductions for tax positions of prior years	(64		)	—			(56		)
Lapse in statute of limitations	(411		)	(10		)	(203		)
Settlements	—			(27		)	(170		)
End of fiscal year	$	7,390		$	7,103		$	6,377

Tax
Credits ($)

Fiscal Year
of Expiration

U.S. foreign tax credits

U.S. research credits

Texas franchise tax credits