Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Schedule of Income Before Income Taxes, Domestic and Foreign

Income before income taxes from continuing operations consists of the following components:

	2013		2012		2011
	(In thousands)
United States	$	13,084	$	35,733	$	55,595
International		48,773		97,693		97,303
	$	61,857	$	133,426	$	152,898

Components of Income Tax Expense (Benefit) from Continuing Operations

The components of income tax expense (benefit) from continuing operations are as follows:

	2013			2012			2011
	(In thousands)
Current:
Federal	$	(13,374	)	$	11,054		$	(2,726	)
State		260			1,279			4,029
Foreign		1,520			1,904			4,645
Total current		(11,594	)		14,237			5,948
Deferred:
Federal		3,445			3,360			9,208
State		(3,684	)		(4,781	)		(2,223	)
Foreign		129			1,167			(1,381	)
Total deferred		(110	)		(254	)		5,604
	$	(11,704	)	$	13,983		$	11,552

Reconciliation of Income Tax Expense (Benefit)

A reconciliation of the income tax expense (benefit) with the amount computed by applying the federal statutory tax rate to income from continuing operations before income taxes is as follows:

	2013			2012			2011
	(In thousands)
Expected income tax expense at the statutory rate	$	21,650		$	46,699		$	53,514
State income taxes, net of federal tax benefit		1,581			1,198			3,680
Tax rate differential on foreign earnings and other international related tax items		(14,025	)		(30,277	)		(31,231	)
Benefit from research and other credits		(9,210	)		(5,090	)		(6,728	)
Stock-based compensation		2,414			2,602			3,679
Resolution of prior period tax matters		(14,701	)		(2,530	)		(10,995	)
Other, net		587			1,381			(367	)
	$	(11,704	)	$	13,983		$	11,552

Components of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities are as follows:

	2013			2012
	(In thousands)
Deferred tax assets:
Reserves and accruals not currently deductible	$	16,968		$	19,830
Stock-based compensation		18,036			17,237
Net operating loss carryforwards		12,408			14,635
Research credits		17,103			11,222
Investment securities		1,267			1,386
Other		657			2,828
Total gross deferred tax assets		66,439			67,138
Valuation allowance		(1,239	)		(1,540	)
Total deferred tax assets, net of valuation allowance		65,200			65,598
Deferred tax liabilities:
State income taxes		9,315			8,266
Property and equipment		6,149			7,044
Research and development expenditures		4,198			2,924
Purchased intangible assets		510			26
Total deferred tax liabilities		20,172			18,260
Net deferred tax assets	$	45,028		$	47,338

Schedule of Gross Unrecognized Tax Benefits Rollforward

A rollforward of the activity in the gross unrecognized tax benefits is as follows:

	2013			2012
	(In thousands)
Balance at beginning of year	$	58,384		$	57,510
Additions based on tax positions related to the current year		1,470			3,581
Additions for tax positions of prior years		183			140
Reductions for tax positions of prior years		(20,547	)		(76	)
Decreases relating to settlements with taxing authorities		(29,906	)		—
Lapses of statute of limitations		—			(2,771	)
Balance at end of year	$	9,584		$	58,384