Income Taxes |
3 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company recorded income tax expense of $21,044,000 for the three months ended June 30, 2026, and $260,000 for the three months ended June 30, 2025. Income tax as a percentage of pre-tax income (loss) was (31)% in the three months ended June 30, 2026 and (16)% in the three months ended June 30, 2025. Typically these percentages vary from the U.S. statutory rate of 21%. During the three months ended June 30, 2026, income tax expense was unfavorably impacted by an increase in the deferred tax asset valuation allowance related to interest expense carryforwards which the Company does not expect to be able to recognize. The realization of these tax benefits depends on the Company's ability to generate sufficient taxable income of the appropriate character and jurisdiction in future periods. Because the Company is in a three-year cumulative loss position, it has concluded that it is appropriate to record a valuation allowance for these tax benefits until additional positive evidence of future period earnings, in the relevant jurisdictions, is available. The Company estimates these deferred tax asset valuation allowances will unfavorably impact the tax rate by approximately 40% to 50% for the fiscal year ended March 31, 2027. The effective tax rate for the three months ended June 30, 2026, also reflects an unfavorable impact related to accrual for income and withholding taxes on the current year earnings of certain foreign subsidiaries that are not considered permanently reinvested. This does not reflect a change in management's assertion regarding the permanent reinvestment of foreign earnings. With respect to the accrual for taxes on repatriation of earnings, the Company anticipates an unfavorable tax rate impact of 5% to 10% for the fiscal year ended in 2027. Refer to the Company’s consolidated financial statements included in the 2026 Form 10-K for further information on income taxes.
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