INCOME TAXES |
3 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES At both June 30, 2026 and March 31, 2026, the Company had $0.5 million of total gross unrecognized tax benefits, including interest. Of these totals, approximately $0.4 million represents the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate for each period. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company had approximately $63.5 thousand accrued for gross interest as of June 30, 2026, and accrued $9.0 thousand during the three months ended June 30, 2026. Investment in HTC was $35.3 million and $10.1 million as of June 30, 2026 and March 31, 2026, respectively, which is included as a component of Other assets, net in the Consolidated Balance Sheets. The Company recognized net amortization from these investments of $1.2 million and $3.4 million during the three months ended June 30, 2026 and 2025, respectively, in income tax expense. The Company recognized tax benefits from these investments of $1.4 million and $3.8 million for the three months ended June 30, 2026 and 2025, respectively, in income tax expense and in Income taxes payable in the Consolidated Statements of Cash Flows. The Company did not recognize any non-tax related activity or have any significant modifications in the investments during the current period. The Company is subject to U.S. income taxes, as well as taxes in various other state and local jurisdictions. With the exception of a few states, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2022, although carryforward attributes that were generated prior to 2022 may still be adjusted upon examination by the taxing authorities if they either have been or will be used in a future period. The Company’s effective income tax rate was 22.7% for the three months ended June 30, 2026 compared to 30.2% for the prior year quarter. The decrease was primarily the result of a settlement with various taxing authorities that resulted in an increase in the reserve under ASC 740 (unrecognized tax positions) which was treated as a discrete item in the prior year quarter. This was partially offset by an increase in disallowed executive compensation under Section 162(m) in the current quarter.
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