v3.26.1
Income Taxes
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Provision for Taxes - The components of Income before income taxes for the fiscal years ended March 31 are as follows:
(Amounts in thousands)202620252024
United States$548,018 $571,649 $641,370 
Foreign11,77017,81625,383
Total$559,788 $589,465 $666,753 
The components of Income tax expense for the fiscal years ended March 31 consisted of the following:
(Amounts in thousands)202620252024
Current:     
Federal$75,432 $112,451 $127,109 
State and local22,08125,33727,028
Foreign2,2473,6287,121
Total current tax expense99,760141,416161,258
Deferred:
Federal35,391(591)(201)
State and local(699)(788)(2,127)
Foreign5361,02668
Total deferred tax expense (benefit)35,228(353)(2,260)
Total Income tax expense$134,988 $141,063 $158,998 
For the fiscal years ended March 31, the effective tax rate varied from the statutory Federal income tax rate as a result of the following factors:
(Amounts in thousands)202620252024
Federal statutory rate$117,555 21.0 %$123,788 21.0 %$140,018 21.0 %
State and local taxes—net of federal income tax benefit(a)
16,686 3.0 %17,820 3.0 %19,245 2.9 %
Nontaxable or nondeductible items
Executive compensation4,688 0.8 %7,719 1.3 %5,507 0.8 %
Stock-based compensation(2,671)(0.5)%(8,273)(1.4)%(4,250)(0.6)%
Other(1,270)(0.2)%9 — %(1,522)(0.3)%
Effective rate$134,988 24.1 %$141,063 23.9 %$158,998 23.8 %
(a)    In 2026, state and local taxes in Florida, California, Georgia, North Carolina, Pennsylvania, and Alabama comprised the majority (greater than 50%) of the tax effect in this category. In 2025, state and local taxes in Florida, California, Georgia, North Carolina, Massachusetts, Oregon, and Pennsylvania comprised the majority (greater than 50%) of the tax effect in this category. In 2024, state and local taxes in Florida, California, Georgia, Pennsylvania, New Jersey, North Carolina, and Alabama comprised the majority (greater than 50%) of the tax effect in this category.
Cash Taxes Paid - The income taxes paid (net of refunds received) for the fiscal years ended March 31 are as follows:
(Amounts in thousands)202620252024
Federal$91,795 $116,003 $128,139 
State and local19,05120,68026,410
Foreign2,5085,4686,600
Total cash paid for income taxes$113,354 $142,151 $161,149 
Deferred Income Taxes - Net deferred tax assets and liabilities are included in Other assets and Deferred tax liabilities, respectively, on the Consolidated Balance Sheets. The related balances at March 31 were as follows:
(Amounts in thousands)20262025
Net non-current deferred tax assets$708 $1,249 
Net non-current deferred tax liabilities220,994190,416
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31 were comprised of:
(Amounts in thousands)20262025
Deferred tax assets:   
Acquisition costs$6,079 $433 
Operating lease liabilities24,482 16,666 
Research and development expenses1,01615,727
Stock-based compensation7,6216,452
Net loss on assets and liabilities held for sale12,709—
Other17,98215,602
Total deferred tax assets69,88954,880
Less: valuation allowance(7,572)(289)
Total net deferred tax assets62,31754,591
Deferred tax liabilities:
Intangible assets84,05596,076
Property, plant and equipment159,122119,703
Operating lease assets24,33316,795
Goodwill11,94510,326
Other3,148858
Total deferred tax liabilities282,603243,758
Net deferred tax liabilities$220,286 $189,167 
As a result of the NDS International Entities being classified as held for sale, the Company has recorded deferred tax assets of $12.7 million as of March 31, 2026 related to net losses on outside basis differences. A valuation allowance has been recorded against $7.3 million of these deferred tax assets as of March 31, 2026. See “Note 5. Discontinued Operations and Held for Sale” for additional information.
The Company intends to repatriate earnings from Canada and believes that there will be no additional tax costs associated with the repatriation of such earnings other than any potential non-U.S. withholding taxes, for which no deferred tax liability has been recognized. All other undistributed earnings from other foreign entities are intended to be reinvested indefinitely with the exception of cash dividends paid by the Company’s ADS Mexicana joint venture. It is not practicable to estimate the amount of deferred tax liability, which would primarily relate to withholding tax, that might be payable on the eventual remittance of such undistributed earnings.
Uncertain Tax Positions - A reconciliation of the balance of unrecognized tax benefits for the years ended March 31 is as follows:
(Amounts in thousands)202620252024
Balance at beginning of year$9,475 $4,600 $2,451 
Tax positions taken in current year4,1932,8821,609
Increases in tax positions for prior years1,7622,083540
Lapse of statute of limitations(439)(90)—
Balance at end of year$14,991 $9,475 $4,600 
Included in the balance of unrecognized tax benefits at March 31, 2026, 2025, and 2024 were $12.2 million, $7.5 million and $3.6 million, respectively, of tax benefits that if recognized would favorably affect the Company’s effective tax rate.
The unrecognized tax benefit is recorded in Other accrued liabilities, Liabilities held for sale, and Other liabilities in the Company’s Consolidated Balance Sheet. These amounts include potential accrued interest and penalties of $0.7 million and $0.4 million at March 31, 2026 and 2025, respectively.
The Company is currently open to audit under the statute of limitations by the IRS for the fiscal years ended March 31, 2023 through March 31, 2026. The majority of the Company’s state income tax returns are open to audit under the statute of limitations for the years ended March 31, 2022 through March 31, 2026. The foreign income tax returns are open to audit under the statute of limitations for the years ended March 31, 2022 through March 31, 2026.