Note 16 - Income Taxes

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

16.

Income Taxes

For the

three

and

nine

months ended

December

31,

2016,

we recorded income tax provisions of

$2.0

million and

$7.2

million, reflecting effective tax rates of

28.6%

and

37.3%,

respectively. For the

three

and

nine

months ended

December

31,

2015,

we recorded income tax provisions of

$3.9

million and

$8.1

million, reflecting effective tax rates of

63.0%

and

48.5%,

respectively. Our effective tax rates for the

three

and

nine

months ended

December

31,

2016

were affected by valuation allowances against net operating losses generated in certain foreign jurisdictions and by a release of tax reserves resulting from the lapse of the statutes of limitations.

During the

three

and

nine

months ended

December

 

31,

2015,

we recorded out-of-period adjustments that increased the income tax provision by a net amount of

$

1.4

million. We recorded a reversal of a deferred tax asset that was overstated in the amount of

$

2.3

million in the financial statements for the fiscal year ended

March

 

31,

2012,

as well as the balance sheets for the fiscal years thereafter and the interim periods within those years and through

September

 

30,

2015.

This adjustment was partially offset by a reduction of

$

893,000

of tax expense relating to an overstatement in income tax reserves for the financial statements for the fiscal year ended

March

 

31,

2015

and the balance sheets of the interim periods in the fiscal

2016

year through

September

 

30,

2015.

The out-of-period adjustments did not have any impact on our cash flow statements in any of the reporting periods. We believe that these out-of-period adjustments are not material to our financial statements for the relevant years. Additionally, for the

three

and

nine

months ended

December

 

31,

2015,

the effective tax rates were also affected by losses that could not be offset against other profits in certain jurisdictions with lower tax rates and by estimates of annual income in domestic and foreign jurisdictions.