v3.26.1
INCOME TAXES
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES Income Taxes
The Company’s provision for income taxes was $138,091, $131,624, and $110,238, for the years ended March 31, 2026, 2025, and 2024, respectively. These represent effective tax rates of 24.6%, 24.8%, and 28.2% for the years ended March 31, 2026, 2025, and 2024, respectively.
Year Ended March 31,
202620252024
Income before provision for income taxes by geography
United States$363,222 $356,072 $256,472 
International199,043 175,263 134,067 
Income before provision for income taxes$562,265 $531,335 $390,539 

The provision for income taxes on operations for the years ended March 31, 2026, 2025, and 2024 is comprised of the following:
Year Ended March 31,
202620252024
Current:
Federal$73,435 $73,724 $40,838 
State and local28,596 15,065 16,116 
Foreign61,176 43,792 32,814 
     Subtotal163,207 132,581 89,768 
Deferred:
Federal(11,766)(7,593)14,116 
State and local(9,283)1,114 3,498 
Foreign(4,067)5,522 2,856 
Subtotal(25,116)(957)20,470 
Total$138,091 $131,624 $110,238 
The provision for income taxes on operations for the year ended March 31, 2026 is reconciled to the income taxes computed at the statutory federal income tax rate (computed by applying the federal corporate rate of 21% to consolidated operating income before provision for income taxes) as follows:
Year Ended March 31,
2026
U.S. federal statutory tax rate$118,076 21.0 %
Nontaxable or nondeductible items
 Executive compensation limit10,485 1.9 %
 Stock compensation(25,225)(4.5)%
 Other5,997 1.1 %
Effect of cross-border tax laws(2,513)(0.4)%
State and local income tax, net of federal (national) income tax effect (1)
15,257 2.7 %
Foreign tax effects
 Other foreign jurisdictions16,014 2.8 %
Effective tax rate$138,091 24.6 %
(1)State and local taxes in NYC, NY and CA made up the majority (greater than 50 percent) of the tax effect in this category.
A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rates prior to the adoption of the new income tax disclosures guidance is shown below for the years ended March 31, 2025 and 2024:
Year Ended March 31,
20252024
Federal income tax provision computed at statutory rate$111,580 21.0 %$82,013 21.0 %
State and local taxes, net of federal tax effect21,297 4.0 %20,027 5.1 %
Tax impact from foreign operations12,535 2.4 %7,922 2.0 %
Nondeductible expenses14,313 2.7 %9,133 2.4 %
Stock compensation(20,387)(3.8)%(7,468)(1.9)%
Uncertain tax positions, true-up items, and other(7,714)(1.5)%(1,389)(0.4)%
Total$131,624 24.8 %$110,238 28.2 %
Deferred income taxes arise principally from temporary differences between book and tax recognition of income, expenses, and losses relating to financing and other transactions. Deferred income taxes as of March 31, 2026 and March 31, 2025, comprise the following:
March 31, 2026March 31, 2025
Deferred tax assets:
Deferred compensation expense/accrued bonus$139,533 $125,428 
Allowance for credit losses2,089 2,246 
Accounts receivable and work in progress1,153 950 
US foreign tax credits 2,375 2,365 
Operating lease liabilities99,492 85,088 
Non-U.S.49,512 40,639 
Other, net3,528 2,431 
Total deferred tax assets297,682 259,147 
Deferred tax asset valuation allowance (12,623)(13,415)
Total deferred tax assets285,059 245,732 
Deferred tax liabilities:
Intangibles(70,133)(69,335)
Operating lease right-of-use assets(79,940)(67,901)
Other, net(25,328)(24,504)
Total deferred tax liabilities(175,401)(161,740)
Net deferred tax assets$109,658 $83,992 
The Company has various foreign net operating losses totaling $37,541. If not utilized, the foreign net operating loss carryforwards will begin to expire in two years, although in certain jurisdictions these attributes do not expire.
We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable.
A reconciliation of the unrecognized tax position as of March 31, 2026 and 2025 is as follows:
March 31, 2026March 31, 2025
Unrecognized tax position at the beginning of the year$329 $15,800 
Decrease related to prior year tax positions— (15,471)
Unrecognized tax position at the end of the year$329 $329 
The Company files a consolidated federal income tax return, as well as consolidated and separate returns in state and local jurisdictions. As of March 31, 2026, all of the federal income tax returns filed since 2023 by the Company are still subject to adjustment upon audit. The Company also files combined and separate income tax returns in many states, which are also open to adjustment.
The amount of cash income taxes, net of refunds paid during the fiscal year ended March 31, 2026 were as follows:
March 31, 2026
Federal taxes
United States$89,436 
State & local taxes
Other state jurisdictions26,356 
Foreign taxes
 Germany29,712 
 United Kingdom24,449 
 Other foreign jurisdictions17,294 
Total cash taxes paid$187,247