Income Taxes (Tables)
|
12 Months Ended |
Mar. 31, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of (loss) Income Before Income Taxes |
The components of income (loss) before income taxes by jurisdiction were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
|
|
March 31,
2026 |
|
|
March 31,
2025 |
|
|
March 31,
2024 |
|
|
|
(In thousands) |
|
United States |
|
$ |
(161,596 |
) |
|
$ |
(329,591 |
) |
|
$ |
(859,006 |
) |
Foreign |
|
|
266,397 |
|
|
|
(215,703 |
) |
|
|
(334,940 |
) |
|
|
$ |
104,801 |
|
|
$ |
(545,294 |
) |
|
$ |
(1,193,946 |
) |
|
| Summary of (Provision for) Benefit from Income Taxes |
The (provision for) benefit from income taxes included the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
|
|
March 31,
2026 |
|
|
March 31,
2025 |
|
|
March 31,
2024 |
|
|
|
(In thousands) |
|
Current tax (provision) benefit: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(6,499 |
) |
|
$ |
(28,247 |
) |
|
$ |
(12,128 |
) |
State |
|
|
(7,050 |
) |
|
|
(2,661 |
) |
|
|
(1,010 |
) |
Foreign |
|
|
(56,735 |
) |
|
|
(117,042 |
) |
|
|
(27,028 |
) |
|
|
|
(70,284 |
) |
|
|
(147,950 |
) |
|
|
(40,166 |
) |
Deferred tax (provision) benefit: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(28,380 |
) |
|
|
16,770 |
|
|
|
74,404 |
|
State |
|
|
(937 |
) |
|
|
(102 |
) |
|
|
5,166 |
|
Foreign |
|
|
(16,622 |
) |
|
|
132,223 |
|
|
|
100,070 |
|
|
|
|
(45,939 |
) |
|
|
148,891 |
|
|
|
179,640 |
|
Total (provision for) benefit from income taxes |
|
$ |
(116,223 |
) |
|
$ |
941 |
|
|
$ |
139,474 |
|
|
| Components of Net Deferred Tax Assets |
Significant components of the Company’s net deferred tax assets were as follows:
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
March 31,
2026 |
|
|
March 31,
2025 |
|
|
|
(In thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
388,035 |
|
|
$ |
252,589 |
|
Tax credit carryforwards |
|
|
178,366 |
|
|
|
159,806 |
|
Capitalized research and development costs |
|
|
65,417 |
|
|
|
136,191 |
|
Operating lease liabilities |
|
|
99,134 |
|
|
|
99,877 |
|
Interest carryforwards |
|
|
34,260 |
|
|
|
105,182 |
|
Other |
|
|
182,575 |
|
|
|
198,071 |
|
Valuation allowance |
|
|
(434,983 |
) |
|
|
(430,501 |
) |
Total deferred tax assets |
|
|
512,804 |
|
|
|
521,215 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Intangible assets |
|
|
(533,515 |
) |
|
|
(576,599 |
) |
Property, equipment and satellites |
|
|
(776,440 |
) |
|
|
(689,880 |
) |
Operating lease assets |
|
|
(91,280 |
) |
|
|
(88,083 |
) |
Other |
|
|
(59,720 |
) |
|
|
(75,918 |
) |
Total deferred tax liabilities |
|
|
(1,460,955 |
) |
|
|
(1,430,480 |
) |
Net deferred tax assets (liabilities) |
|
$ |
(948,151 |
) |
|
$ |
(909,265 |
) |
|
| Reconciliation of Benefit from (Provision for) Income Taxes to Amount Computed by Applying Statutory Federal Income Tax Rate to Income (Loss) before Income Taxes |
A reconciliation of the benefit from (provision for) income taxes to the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes for the fiscal year ended March 31, 2026 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
March 31, 2026 |
|
|
|
Dollar |
|
|
Percentage |
|
|
|
(In thousands) |
|
|
|
|
U.S. federal statutory tax rate |
|
$ |
(22,008 |
) |
|
|
21 |
% |
State and local income taxes, net of federal income tax effect (1) |
|
|
(6,532 |
) |
|
6 |
|
Foreign tax effects |
|
|
|
|
|
|
United Kingdom |
|
|
|
|
|
|
Statutory tax rate difference between United Kingdom and United States |
|
|
(5,053 |
) |
|
|
5 |
|
Interest on overpaid taxes, net of income tax effect |
|
|
5,146 |
|
|
|
(5 |
) |
Other |
|
|
5,635 |
|
|
|
(5 |
) |
Canada |
|
|
|
|
|
|
Statutory tax rate difference between Canada and United States |
|
|
10,226 |
|
|
|
(10 |
) |
Local provincial income taxes |
|
|
(20,332 |
) |
|
|
19 |
|
Capital gain partial exemption on sale of Navarino UK |
|
|
12,605 |
|
|
|
(12 |
) |
Tax audit adjustments |
|
|
(5,619 |
) |
|
|
5 |
|
Withholding taxes |
|
|
(8,993 |
) |
|
|
9 |
|
Other |
|
|
(3,050 |
) |
|
|
3 |
|
Other foreign jurisdictions |
|
|
(20,969 |
) |
|
|
20 |
|
Effect of changes in tax laws or rates enacted in the current period |
|
|
(10,061 |
) |
|
|
10 |
|
Effect of cross-border tax laws |
|
|
|
|
|
|
Global intangible low-taxed income (GILTI) |
|
|
(43,061 |
) |
|
|
41 |
|
Subpart F income |
|
|
(45,418 |
) |
|
|
43 |
|
Inclusion of foreign disregarded entities |
|
|
(3,451 |
) |
|
|
3 |
|
Other |
|
|
1,324 |
|
|
|
(1 |
) |
Tax credits |
|
|
|
|
|
|
Research and development tax credits |
|
|
10,558 |
|
|
|
(10 |
) |
Changes in valuation allowances |
|
|
48,628 |
|
|
|
(46 |
) |
Nontaxable or nondeductible Items |
|
|
|
|
|
|
Non-deductible compensation |
|
|
(3,594 |
) |
|
|
3 |
|
Other |
|
|
(8,507 |
) |
|
|
8 |
|
Changes in prior period worldwide unrecognized tax benefits |
|
|
3,029 |
|
|
|
(3 |
) |
Other adjustments |
|
|
|
|
|
|
Unremitted subsidiary gains |
|
|
(4,380 |
) |
|
|
4 |
|
Other |
|
|
(2,346 |
) |
|
|
2 |
|
Total |
|
$ |
(116,223 |
) |
|
|
111 |
% |
(1) State taxes in Virginia and Maryland made up the majority (greater than 50 percent) of the tax effect in this category. A reconciliation of the benefit from (provision for) income taxes to the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes for the fiscal years ended March 31, 2025 and 2024 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
|
|
March 31,
2025 |
|
|
March 31,
2024 |
|
|
|
(In thousands) |
|
Tax (provision) benefit at federal statutory rate |
|
$ |
114,512 |
|
|
$ |
250,728 |
|
State tax provision, net of federal benefit |
|
|
8,908 |
|
|
|
28,621 |
|
Tax credits |
|
|
16,004 |
|
|
|
28,574 |
|
Change in federal valuation allowances |
|
|
(49,566 |
) |
|
|
(105,968 |
) |
Change in state valuation allowances |
|
|
(10,880 |
) |
|
|
(27,251 |
) |
Non-deductible compensation |
|
|
(2,459 |
) |
|
|
(5,240 |
) |
Non-deductible transaction costs |
|
|
(40 |
) |
|
|
(18,911 |
) |
Non-deductible meals and entertainment |
|
|
(1,112 |
) |
|
|
(1,077 |
) |
Stock-based compensation |
|
|
(12,932 |
) |
|
|
(12,182 |
) |
Change in state effective tax rate |
|
|
(452 |
) |
|
|
292 |
|
Base Erosion and Anti-Abuse Tax (BEAT) |
|
|
(30,448 |
) |
|
— |
|
Foreign effective tax rate differential, net of valuation allowance |
|
|
(9,185 |
) |
|
|
6,199 |
|
Unremitted subsidiary gains |
|
|
(7,043 |
) |
|
|
(1,586 |
) |
Withholding taxes |
|
|
(6,852 |
) |
|
|
(4,981 |
) |
Other |
|
|
(7,514 |
) |
|
|
2,256 |
|
Total (provision for) benefit from income taxes |
|
$ |
941 |
|
|
$ |
139,474 |
|
|
| Summary of Activity Related to Unrecognized Tax Benefits |
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
March 31,
2026 |
|
|
March 31,
2025 |
|
|
March 31,
2024 |
|
|
|
(In thousands) |
|
Balance, beginning of fiscal year |
|
$ |
188,186 |
|
|
$ |
185,595 |
|
|
$ |
129,738 |
|
Increase related to prior year tax positions |
|
|
1,200 |
|
|
|
1,571 |
|
|
|
2,728 |
|
Decrease related to prior year tax positions |
|
|
(265 |
) |
|
|
(253 |
) |
|
|
(190 |
) |
Increase related to current year tax positions |
|
|
49,117 |
|
|
|
14,017 |
|
|
|
15,608 |
|
Increase related to business combinations |
|
— |
|
|
— |
|
|
|
54,193 |
|
Expiration of the statute of limitations for the assessment of taxes |
|
|
(11,054 |
) |
|
|
(12,744 |
) |
|
|
(16,482 |
) |
Balance, end of fiscal year |
|
$ |
227,184 |
|
|
$ |
188,186 |
|
|
$ |
185,595 |
|
|
| Schedule of Income Taxes Paid Net of Refunds Received |
The income taxes paid, net of refunds received, for the fiscal year ended March 31, 2026 was as follows:
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
March 31, 2026 |
|
|
(In thousands) |
|
|
Federal |
|
$ |
10,103 |
|
|
State |
|
|
1,472 |
|
|
Foreign |
|
|
|
|
United Kingdom |
|
|
49,443 |
|
|
Brazil |
|
|
5,928 |
|
|
Other foreign jurisdictions |
|
|
13,755 |
|
|
Total cash paid for income taxes, net |
|
$ |
80,701 |
|
|
|