Income Taxes (Tables)

12 Months Ended

Mar. 31, 2020

Income Taxes

Schedule of income before income tax expense based on the geographic location

The income before income tax expense shown below is based on the geographic location to which such income is attributed for each of the fiscal years ended March 31, 2020, 2019 and 2018:

	Year Ended March 31,
	2020		2019		2018
United States	$	25,528	$	9,454	$	(31,526)
Foreign		23,133		28,710		73,362
Total	$	48,661	$	38,164	$	41,836

Schedule of provision for income taxes

The provision for income taxes for each of the fiscal years ended March 31, 2020, 2019 and 2018 consisted of the following:

	March 31,
	2020		2019		2018
Current provision:
Federal	$	(736)	$	672	$	18,747
State		995		447		(108)
Foreign		(2,133)		21,124		24,195
Total current provision	$	(1,874)	$	22,243	$	42,834
Deferred (benefit) provision:
Federal	$	(3,135)	$	(315)	$	(1,289)
State		1,692		1,105		(2,726)
Foreign		3,626		(2,560)		(5,931)
Total deferred (benefit) provision	$	2,183	$	(1,770)	$	(9,946)
Total provision for income taxes	$	309	$	20,473	$	32,888

Summary of items which gave rise to differences between the income taxes in the statements of income and the income taxes computed at the U.S. statutory rate

The items which gave rise to differences between the income taxes in the statements of income and the income taxes computed at the U.S. statutory rate 21.0%, 21.0% and 30.7% for the year ended March 31, 2020, 2019 and 2018 respectively are summarized as follows:

	Year Ended March 31,
	2020		2019		2018
Tax on income before income tax expense at U.S. statutory rate	$	10,124	$	8,014	$	12,865
U.S. state and local taxes (benefit), net of U.S. federal income tax effects		2,478		1,459		(2,800)
Benefit from foreign subsidiaries’ tax holidays		(126)		(5,778)		(7,727)
Foreign rate difference		7,668		11,795		(2,215)
Tax rate change		(1,917)		431		9,915
Nondeductible business costs		539		1,032		2,721
Repatriated foreign earnings		—		—		—
Deemed repatriated foreign earnings		—		(1,628)		17,834
GILTI and BEAT tax		3,367		3,763		—
Excess stock-based compensation benefits		(1,024)		(3,388)		(1,674)
Nondeductible interest		—		6,213		6,500
Other adjustments		4,118		(1,157)		(342)
Tax credit carry forwards		(15,565)		548		(1,360)
Income Tax Refundable		(16,940)		—		—
Valuation Allowance		7,587		(831)		(829)
Income tax expense	$	309	$	20,473	$	32,888

Schedule of deferred tax assets (liabilities)

Deferred tax assets (liabilities) at March 31, 2020 and 2019 were as follows:

	Year Ended March 31,
	2020		2019
Deferred revenue	$	1,458	$	898
Bad debt reserve		525		662
Tax credit carry forwards		15,401		591
Accrued expenses and reserves		23,116		14,087
Operating lease liabilities		20,428		—
Share-based compensation expense		1,929		4,911
Unrealized losses		4,630		583
Intangible assets		—		3,324
Net operating loss		8,637		14,777
Total gross deferred tax assets	$	76,124	$	39,833
Valuation allowance		(9,644)		(2,492)
Total deferred tax assets	$	66,480	$	37,341
Depreciable assets		(6,497)		(7,351)
Intangible assets		(13,236)		—
Operating lease right-of-use assets		(18,829)		—
Acquisition and other liabilities		(2,961)		(8,890)
Goodwill		(10,799)		(8,154)
Total deferred tax liabilities	$	(52,322)	$	(24,395)
Net deferred tax assets/(liabilities)	$	14,158	$	12,946

Summary of the activity related to the gross unrecognized tax benefits

The following summarizes the activity related to the gross unrecognized tax benefits:

	March 31,
	2020		2019		2018
Balance at beginning of the fiscal year	$	6,744	$	7,544	$	7,612
Foreign currency translation related to prior year tax positions		(467)		(472)		105
Decreases related to prior year tax positions		—		(770)		(332)
Decreases related to prior year tax positions due to settlements or lapse in applicable statute of limitations		(324)		(206)		(335)
Increases related to prior year tax positions		674		648		494
Balance at end of the fiscal year	$	6,627	$	6,744	$	7,544