INCOME TAXES (Tables)
|
12 Months Ended |
Mar. 31, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Tax Expense |
Income before income tax expense consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended March 31, |
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Domestic |
$ |
95,578 |
|
|
$ |
(386,859 |
) |
|
$ |
(169,657 |
) |
Foreign |
|
22,930 |
|
|
|
21,065 |
|
|
|
25,147 |
|
|
$ |
118,508 |
|
|
$ |
(365,794 |
) |
|
$ |
(144,510 |
) |
|
| Schedule of Components of Income Tax Expense |
The components of the income tax expense are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended March 31, |
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Current income tax expense: |
|
|
|
|
|
|
|
|
Federal |
$ |
32,569 |
|
|
$ |
21,766 |
|
|
$ |
32,798 |
|
State |
|
6,013 |
|
|
|
4,548 |
|
|
|
6,161 |
|
Foreign |
|
12,183 |
|
|
|
12,353 |
|
|
|
10,238 |
|
|
|
50,765 |
|
|
|
38,667 |
|
|
|
49,197 |
|
Deferred income tax benefit: |
|
|
|
|
|
|
|
|
Federal |
|
(22,521 |
) |
|
|
(30,403 |
) |
|
|
(36,402 |
) |
State |
|
(3,478 |
) |
|
|
(5,267 |
) |
|
|
(7,611 |
) |
Foreign |
|
(1,789 |
) |
|
|
(1,869 |
) |
|
|
(1,960 |
) |
|
|
(27,788 |
) |
|
|
(37,539 |
) |
|
|
(45,973 |
) |
|
$ |
22,977 |
|
|
$ |
1,128 |
|
|
$ |
3,224 |
|
|
| Schedule of Federal Statutory Income Tax Rate to Effective Tax Rate |
The reconciliation of the income taxes at the federal statutory rate to the reported rate of income taxes pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended March 31, 2026 is as follows:
|
|
|
|
|
|
|
|
|
Fiscal Years Ended March 31, |
|
|
2026 |
|
|
Amount |
|
|
Percent |
|
U.S. federal statutory tax rate |
$ |
24,886 |
|
|
|
21.0 |
% |
*State and local income tax, net of federal income tax effect |
|
1,877 |
|
|
|
1.6 |
|
Foreign tax effects |
|
|
|
|
|
United Kingdom |
|
|
|
|
|
Withholding taxes |
|
3,326 |
|
|
|
2.8 |
|
Other |
|
643 |
|
|
|
0.5 |
|
Other foreign jurisdictions |
|
1,605 |
|
|
|
1.3 |
|
Effect of cross-border tax laws |
|
|
|
|
|
Foreign-derived intangible income |
|
(11,847 |
) |
|
|
(10.0 |
) |
Foreign branch income |
|
2,460 |
|
|
|
2.1 |
|
Withholding taxes |
|
1,397 |
|
|
|
1.2 |
|
Other |
|
2,026 |
|
|
|
1.7 |
|
Tax credits |
|
|
|
|
|
Research and development tax credits |
|
(5,140 |
) |
|
|
(4.3 |
) |
Foreign tax credits |
|
(4,274 |
) |
|
|
(3.6 |
) |
Changes in valuation allowance |
|
2,832 |
|
|
|
2.4 |
|
Nontaxable or nondeductible items |
|
|
|
|
|
Share-based compensation |
|
1,437 |
|
|
|
1.2 |
|
Other |
|
1,749 |
|
|
|
1.5 |
|
Changes in unrecognized tax benefits |
|
— |
|
|
|
— |
|
Effective tax rate |
$ |
22,977 |
|
|
|
19.4 |
% |
* State taxes in Illinois and New Jersey made up the majority (greater than 50%) of the tax effect in this category. |
|
|
|
|
|
The reconciliation of income taxes at the federal statutory rate to the reported rate for income taxes prior to our adoption of ASU 2023-09 for fiscal years ended March 31, 2025 and 2024 is as follows:
|
|
|
|
|
|
|
|
|
Fiscal Years Ended March 31, |
|
|
2025 |
|
|
2024 |
|
Statutory U.S. federal tax rate |
|
21 |
% |
|
|
21 |
% |
State taxes, net of federal tax effect |
|
(0.5 |
) |
|
|
(0.6 |
) |
U.S. federal and state research and development tax credits |
|
2.0 |
|
|
|
6.4 |
|
Effect of foreign operations |
|
(0.7 |
) |
|
|
1.5 |
|
Meals and entertainment |
|
(0.2 |
) |
|
|
(0.9 |
) |
Changes in valuation allowance |
|
(0.6 |
) |
|
|
(4.1 |
) |
Goodwill impairment |
|
(22.0 |
) |
|
|
(28.5 |
) |
Share-based compensation |
|
(1.3 |
) |
|
|
(1.0 |
) |
Divestiture |
|
— |
|
|
|
(0.6 |
) |
Global intangible low taxed income |
|
— |
|
|
|
(0.2 |
) |
Foreign derived intangible income |
|
3.2 |
|
|
|
6.3 |
|
Foreign withholdings |
|
(1.3 |
) |
|
|
(1.4 |
) |
Other permanent differences |
|
0.1 |
|
|
|
(0.1 |
) |
|
|
(0.3 |
)% |
|
|
(2.2 |
)% |
|
| Schedule of Components of Net Deferred Tax Assets |
The components of net deferred tax assets and liabilities are as follows (in thousands):
|
|
|
|
|
|
|
|
|
Fiscal Years Ended March 31, |
|
|
2026 |
|
|
2025 |
|
Deferred tax assets: |
|
|
|
|
|
Accrued expenses |
$ |
5,086 |
|
|
$ |
5,056 |
|
Capitalized research and development expenses |
|
108,856 |
|
|
|
92,427 |
|
Deferred revenue |
|
25,115 |
|
|
|
20,356 |
|
Reserves |
|
1,991 |
|
|
|
2,378 |
|
Pension and other retiree benefits |
|
1,971 |
|
|
|
2,265 |
|
Net operating loss carryforwards |
|
6,686 |
|
|
|
6,532 |
|
Tax credit carryforwards |
|
35,567 |
|
|
|
32,042 |
|
Share-based compensation |
|
6,635 |
|
|
|
7,140 |
|
Lease liabilities |
|
9,168 |
|
|
|
10,503 |
|
Other |
|
12 |
|
|
|
— |
|
Total gross deferred tax assets |
|
201,087 |
|
|
|
178,699 |
|
Valuation allowance |
|
(26,607 |
) |
|
|
(23,088 |
) |
Net deferred tax assets |
|
174,480 |
|
|
|
155,611 |
|
Deferred tax liabilities: |
|
|
|
|
|
Intangible assets |
|
(56,378 |
) |
|
|
(65,979 |
) |
Right-of-use assets |
|
(8,215 |
) |
|
|
(9,067 |
) |
Depreciation |
|
(2,473 |
) |
|
|
(2,494 |
) |
Other deferred tax liabilities |
|
(15,904 |
) |
|
|
(14,420 |
) |
Total deferred tax liabilities |
$ |
91,510 |
|
|
$ |
63,651 |
|
|
| Schedule of Income Tax Paid |
A reconciliation of income taxes paid, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 is as follows:
|
|
|
|
|
Fiscal Year Ended March 31, |
|
|
2026 |
|
U.S. Federal |
$ |
24,000 |
|
U.S. State |
|
4,781 |
|
Foreign |
|
|
United Kingdom |
|
4,331 |
|
Other foreign jurisdictions |
|
9,611 |
|
Total |
$ |
42,723 |
|
|
| Schedule of Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 31, 2026, 2025 and 2024 is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended March 31, |
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Balance at April 1, |
$ |
724 |
|
|
$ |
1,052 |
|
|
$ |
1,024 |
|
Additions based on tax positions related to the current year |
|
28 |
|
|
|
28 |
|
|
|
28 |
|
Release of tax positions of prior years |
|
— |
|
|
|
(356 |
) |
|
|
— |
|
Balance at March 31, |
$ |
752 |
|
|
$ |
724 |
|
|
$ |
1,052 |
|
|