Income Taxes - (Tables)

12 Months Ended

Mar. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense (benefit) are as follows:



	Years Ended March 31,
	2019		2018		2017
Current
Federal	$	33,334	$	80,339	$	2,184
State	9,084		3,437		1,576
Foreign	15,269		14,388		8,039
Total	57,687		98,164		11,799



	Years Ended March 31,
	2019			2018			2017
Deferred
Federal	6,612			12,007			(20,287		)
State	2,236			391			(3,446		)
Foreign	(1,909		)	(4,260		)	(762		)
Total	6,939			8,138			(24,495		)
Total	$	64,626		$	106,302		$	(12,696	)

Components of income (loss) before income taxes include the following:



	Years Ended March 31,
	2019		2018		2017
Domestic*	$	181,730	$	71,482	$	(69,997	)
Foreign	147,204		149,214		63,011
Total	$	328,934	$	220,696	$	(6,986	)

*Domestic income (loss) before income taxes for the years ended March 31, 2019, 2018 and 2017 is presented net of intercompany dividends of $130,000, $250,000, and $13,692, respectively.

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) differed from that obtained by applying the statutory federal income tax rate to income (loss) before income taxes or benefit as follows:



	Years Ended March 31,
	2019			2018			2017
Computed expected income taxes	$	69,076		$	69,556		$	(2,445	)
State income taxes, net of federal income tax benefit*	9,329			9,044			(1,403		)
Foreign rate differential	(20,105		)	(37,090		)	(8,062		)
Unrecognized tax benefits	786			1,301			2,691
Income tax expense on diminution of operations and nondeductible goodwill	—			—			3,921
Return to provision adjustments	(179		)	(2,252		)	(1,386		)
Nontaxable income	(4,257		)	(7,006		)	(5,055		)
Nondeductible expense	7,742			1,382			1,358
US tax on foreign earnings**	5,848			57,138			—
Re-measurement of deferred taxes***	(983		)	14,395			—
Statutory foreign income tax expense (benefit)	276			59			(2,504		)
Other	(2,907		)	(225		)	189
Total	$	64,626		$	106,302		$	(12,696	)

*During the year ended March 31, 2018, the Company recorded $1,976 of state income taxes associated with one-time mandatory deemed repatriation of foreign earnings due to the Tax Reform Act.

**The amount for the year ended March 31, 2018 is the one-time mandatory deemed repatriation tax on accumulated foreign earnings due pursuant to the Tax Reform Act. The amount for the year ended March 31, 2019 is GILTI pursuant to the Tax Reform Act.

***The total non-cash re-measurement of deferred tax assets and liabilities for the year ended March 31, 2018 was driven by the US federal tax rate reduction from 35.0% to 21.0% pursuant to the Tax Reform Act.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows:



	As of March 31,
	2019		2018
Deferred tax assets
Amortization and impairment of intangible assets	$	13,615	$	18,261
Stock compensation	3,645		4,027
Deferred rent obligations	4,899		5,452
Acquisition costs	461		481
Uniform capitalization adjustment to inventory	3,965		3,212
Bad debt allowance and other reserves	11,932		12,939
State taxes	239		798
Accrued bonuses	7,350		7,573
Foreign currency translation	670		—
Net operating loss carry-forwards, net of valuation allowances	807		863
Other	745		—
Total	48,328		53,606
Deferred tax liabilities
Prepaid expenses	3,379		2,686
Depreciation of property and equipment	14,079		9,638
Foreign currency translation	—		1,700
Other	—		1,201
Total	17,458		15,225

Deferred tax assets, net	$	30,870	$	38,381

Summary of Income Tax Contingencies

Total gross unrecognized tax benefits recorded in the consolidated balance sheets, as follows:



	As of March 31,
	2019		2018
Long-term asset
Deferred tax assets, net	$	486	$	—
Current liability
Income taxes payable	7		—
Long-term liability
Income tax liability	10,449		9,594
Total	$	10,942	$	9,594

A reconciliation of the beginning and ending amounts of total gross unrecognized tax benefits are as follows:



Balance as of March 31, 2016	$	8,695
Gross increase related to current year tax positions	1,878
Gross increase related to prior year tax positions	1,154
Balance as of March 31, 2017	11,727
Gross increase related to current year tax positions	1,168
Gross increase related to prior year tax positions	1,243
Settlements	(4,501		)
Lapse of statute of limitations	(43		)
Balance as of March 31, 2018	9,594
Gross increase related to current year tax positions	1,027
Gross increase related to prior year tax positions	3,282
Settlements	(1,157		)
Lapse of statute of limitations	(1,804		)
Balance as of March 31, 2019	$	10,942