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Income Taxes - (Tables)

12 Months Ended

Mar. 31, 2022

Components of income before income taxes recorded in the consolidated statements of comprehensive income were as follows:


	Years Ended March 31,
	2022		2021		2020
Domestic*	$	396,368	$	368,328	$	206,111
Foreign	168,270		133,186		134,755
Total	$	564,638	$	501,514	$	340,866

*Domestic income before income taxes for the years ended March 31, 2022, 2021, and 2020 is presented net of intercompany dividends of $120,000, $175,000, and $150,000, respectively.

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense (benefit) recorded in the consolidated statements of comprehensive income were as follows:


	Years Ended March 31,
	2022		2021		2020
Current
Federal	$	95,012	$	93,562	$	47,087
State	22,544		15,595		635
Foreign	22,929		17,953		14,068
Total	140,485		127,110		61,790
Deferred
Federal	(17,316)		(6,717)		4,626
State	(4,827)		(633)		(462)
Foreign	(5,653)		(821)		(1,230)
Total	(27,796)		(8,171)		2,934
Total	$	112,689	$	118,939	$	64,724

Schedule of Income Tax Expense Reconciliation

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


	Years Ended March 31,
	2022		2021		2020
Computed expected income taxes	$	118,574	$	105,318	$	71,582
State income taxes, net of federal income tax benefit	16,899		16,479		11,042
Foreign rate differential	(22,188)		(15,507)		(17,966)
Unrecognized tax benefits	(494)		7,632		6,695

Return to provision adjustments	(3,736)		—		—
Dividends from previously taxed earnings	(4,240)		(5,313)		(4,584)
Nondeductible executive compensation	11,059		11,070		4,162
US tax on foreign earnings	4,325		4,252		2,343

Tax audit settlements	795		1,147		(3,956)

Employee stock-based compensation excess tax benefits	(10,916)		(6,846)		(2,477)
Other	2,611		707		(2,117)
Total	$	112,689	$	118,939	$	64,724

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,
	2022		2021
Deferred tax assets
Amortization and impairment of intangible assets	$	4,828	$	7,302
Nonvested stock-based compensation	7,695		7,138
Operating lease liabilities	37,020		37,707
Uniform capitalization adjustment to inventory	11,996		5,256


	As of March 31,
	2022		2021
Bad debt allowance and other reserves	26,627		19,321
Accrued bonuses	7,572		8,491
Foreign currency translation	649		646
Net operating loss carry-forwards, net of valuation allowances	1,802		1,663
Deferred revenue	22,074		817
Other	1,375		2,231
Gross deferred tax assets	121,638		90,572
Valuation allowances	(1,206)		(1,197)
Total	120,432		89,375
Deferred tax liabilities
Prepaid expenses	(5,460)		(3,829)
Operating lease assets	(28,831)		(30,754)
Depreciation of property and equipment	(21,924)		(17,598)


Total	(56,215)		(52,181)
Deferred tax assets, net	$	64,217	$	37,194

Summary of Income Tax Contingencies

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


Balance, March 31, 2019	$	10,942
Gross increase related to current fiscal year tax positions	1,153
Gross increase related to prior fiscal year tax positions	8,152
Settlements	(246)
Lapse of statute of limitations	(2,363)
Balance, March 31, 2020	17,638
Gross increase related to current fiscal year tax positions	2,242
Gross increase related to prior fiscal year tax positions	8,566
Settlements	(1,215)
Lapse of statute of limitations	(1,961)
Balance, March 31, 2021	25,270
Gross increase related to current fiscal year tax positions	2,520
Gross increase related to prior fiscal year tax positions	2,750
Gross decrease related to prior fiscal year tax positions	(243)
Settlements	(795)
Lapse of statute of limitations	(4,723)
Balance, March 31, 2022	$	24,779

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


	As of March 31,
	2022		2021


Current liability
Income tax payable	$	—	$	1,038
Long-term liability
Income tax liability	24,779		24,232
Total	$	24,779	$	25,270