INCOME TAXES

9 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Generally, the Company's effective tax rate differs from the U.S. federal statutory income tax rate primarily due to foreign withholding taxes and U.S. taxation on foreign earnings, which are partially offset by research and development tax credits and the foreign derived intangible income deduction.

The Company's effective tax rates were 14.9% and 0.9% for the three months ended December 31, 2024 and 2023, respectively. The effective tax rate for the three months ended December 31, 2024 differed from the effective tax rate for the three months ended December 31, 2023 primarily related to a decrease in the research and development tax credit and an increase in foreign withholding taxes.

The Company's effective tax rates were 0.4% and 3.3% for the nine months ended December 31, 2024 and 2023, respectively. The effective tax rate for the nine months ended December 31, 2024 differed from the effective tax rate for the nine months ended December 31, 2023 primarily related to a decrease in the research and development tax credit, an increase in foreign withholding taxes and goodwill impairment incurred during the nine months ended December 31, 2024, which was not deductible for tax purposes.