v3.26.1
Income Taxes (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Taxes
Income before income taxes includes the following (in thousands):
Fiscal Year Ended March 31,
202620252024
Domestic$66,058 $138,333 $82,033 
Foreign233,703 85,096 72,882 
Total$299,761 $223,429 $154,915 
Schedule of Income Tax Provision
The income tax provision includes the following (in thousands):
Fiscal Year Ended March 31,
202620252024
Current tax position:
Federal$75,229 $93,563 $44,568 
State955 5,530 (6,236)
Foreign35,840 33,729 21,839 
Total current tax position112,024 132,822 60,171 
Deferred tax provision:
Federal8,844 (58,527)(52,712)
State1,119 (4,201)(3,500)
Foreign15,105 (330,349)(3,676)
Total deferred tax provision25,068 (393,077)(59,888)
Total income tax expense (benefit)$137,092 $(260,255)$283 
Schedule of Tax Rate Reconciliation
In accordance with ASU 2023-09 disclosure requirements, the Company’s income tax expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% to pre-tax income for the year ended March 31, 2026 as a result of the following (in thousands, except for percentages):
Fiscal Year Ended March 31, 2026
AmountPercent
Income tax expense at U.S. federal statutory income tax rate$62,950 21.0 %
State and local income taxes, net of federal income tax effect (1)
4,151 1.4 %
Foreign tax effects
Austria
Employee compensation(4,893)(1.6)%
Other(1,465)(0.5)%
Brazil
Withholding tax4,618 1.5 %
Other(54)— %
Israel
Tax effect of intercompany IP transfer3,304 1.1 %
Changes in valuation allowances(3,758)(1.3)%
Other646 0.2 %
Poland
Research and development tax credits(4,875)(1.6)%
Changes in valuation allowances4,290 1.4 %
Other(578)(0.2)%
Switzerland
Statutory tax rate difference between Switzerland and U.S.(23,412)(7.8)%
Cantonal and communal income taxes6,821 2.3 %
Other306 0.1 %
Other foreign jurisdictions18,770 6.3 %
Effect of cross-border tax laws
GILTI, net of credits26,548 8.8 %
Impact of foreign branches, net of credits19,398 6.5 %
U.S. tax on foreign IP royalties6,235 2.1 %
Other(2,416)(0.8)%
Nontaxable or nondeductible items
Employee compensation12,964 4.3 %
Other2,374 0.8 %
Changes in unrecognized tax benefits3,325 1.1 %
Other adjustments1,843 0.6 %
Total income tax expense$137,092 45.7 %
(1) State and local tax in California, Washington D.C., Illinois, Michigan, and Detroit, Michigan made up the majority (greater than 50%) of the tax effect in this category.
In accordance with disclosure requirements prior to the adoption of ASU 2023-09, the Company’s income tax (benefit) expense differs from the amounts computed by applying the U.S. federal income tax rate of 21% to pre-tax income for the years ended March 31, 2025 and 2024 as a result of the following (in thousands):
Fiscal Year Ended March 31,
20252024
Income tax expense at U.S. federal statutory income tax rate$46,920 $32,532 
State and local tax expense, net of federal benefits7,296 306 
Foreign tax rate differential2,129 3,318 
U.S. effects of foreign branch income12,147 8,662 
Non-taxable income and non-deductible expenses860 1,742 
Tax credits(58,761)(41,740)
GILTI inclusion and foreign-derived intangible income deduction
(14,563)(13,905)
Employee compensation8,622 (7,188)
Changes in uncertain tax positions6,534 (14,835)
Changes in valuation allowance27,116 13,080 
Foreign withholding tax18,414 18,469 
Inflation and currency related adjustments100 851 
IP Transfer(320,902)— 
Other adjustments3,833 (1,009)
Total income tax (benefit) expense$(260,255)$283 
Schedule of Cash Paid for Income Taxes, Net of Refunds Received
In accordance with ASU 2023-09 disclosure requirements, cash paid for income taxes, net of refunds received, by jurisdiction for the year ended March 31, 2026 includes the following (in thousands):
Fiscal Year Ended March 31, 2026
U.S. federal$70,826 
U.S. state and local6,229 
Foreign:
Austria6,778 
Brazil7,058 
Other26,693 
Total foreign40,529 
Total cash paid for income taxes, net of refunds$117,584 
Schedule of Deferred Tax Assets and Liabilities
Temporary differences and carryforwards that give rise to a significant portion of deferred tax assets and liabilities are as follows (in thousands):
March 31,
20262025
Deferred tax assets:
Deferred revenue$32,386 $32,055 
Capitalized research and development costs147,630 155,368 
Accrued expenses25,619 21,829 
Share-based compensation28,586 28,012 
Operating lease liabilities57,481 24,249 
Net operating loss carryforwards26,736 24,312 
Intangible assets270,453 303,835 
Tax credit carryforwards69,392 59,599 
Other5,544 4,683 
Total deferred tax assets663,827 653,942 
Valuation allowance(71,573)(68,222)
Total deferred tax assets, net valuation allowance592,254 585,720 
Deferred tax liabilities:
Operating lease right-of-use assets49,219 22,267 
Deferred contract costs34,271 33,632 
Other1,965 690 
Total deferred tax liabilities85,455 56,589 
Net deferred tax assets$506,799 $529,131 
Schedule of Reconciliation of Unrecognized Tax Benefits
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended March 31, 2026, 2025, and 2024 (in thousands):
Fiscal Year Ended March 31,
202620252024
Gross unrecognized tax benefit, beginning of year$20,168 $13,668 $29,110 
Gross increases to tax positions for the current period5,602 6,725 — 
Gross increases to tax positions for prior periods6,948 1,689 721 
Gross decreases to tax positions for prior periods(7,428)— (4,277)
Decreases related to settlements— — (168)
Decreases due to lapse of statutes of limitations(1,504)(1,922)(11,689)
Foreign currency translation$(26)$8 $(29)
Gross unrecognized tax benefit, end of year$23,760 $20,168 $13,668