INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2014

INCOME TAXES [Abstract]

Income from Continuing Operations before Income Taxes and Income Tax Provision

Income from continuing operations before income tax provision and the income tax provision include the following (in thousands):

	Year Ended March 31,
	2014			2013			2012
Income from continuing operations before income tax provision:
U.S.	$	608		$	(4,736	)	$	69,110
Foreign		50,535			45,970			16,336
Total income from continuing operations before income tax provision	$	51,143		$	41,234		$	85,446
Income tax provision - continuing operations
Current:
U.S. Federal	$	22,941		$	24,831		$	1,562
Foreign		12,573			8,714			4,556
U.S. State		818			(4,205	)		(1,679	)
Total current tax provision - continuing operations		36,332			29,340			4,439
Deferred:
U.S. Federal		(37,126	)		(26,351	)		17,404
Foreign		1,464			7,212			3,076
U.S. State		12,274			5,716			(2,914	)
Total deferred tax provision (benefit) - continuing operations		(23,388	)		(13,423	)		17,566
Total income tax provision - continuing operations	$	12,944		$	15,917		$	22,005

Effective Income Tax Rate Reconciliation

The Company's income tax expense differed from the amount computed on pre-tax income at the U.S. federal income tax rate of 35% for the following reasons (in thousands):

	Year Ended March 31,
	2014			2013			2012
Federal income tax at statutory rates	$	17,900		$	14,432		$	29,906
Increase (decrease) in taxes:
State income taxes, net		538			407			2,930
Foreign tax rate differential		(4,787	)		(4,030	)		(3,004	)
Taxes relating to foreign operations		(1,040	)		6,415			1,525
Settlement of prior year tax matters		(73	)		(565	)		(1,992	)
Tax credits (1)		(2,552	)		(3,634	)		(2,065	)
Revaluation of deferred taxes		(2,152	)		1,629
Non-deductible intangible amortization		2,169			2,090			1,949
Foreign reorganization								1,550
Valuation allowance (2)		8,113			2,593			(7,174	)
Non-deductible expenses		709			2,867			3,212
Domestic production deduction		(2,895	)		(2,404	)		(2,301	)
Stock based compensation		(2,172	)
Other, net		(814	)		(3,883	)		(2,531	)
Provision for income taxes	$	12,944		$	15,917		$	22,005

(1) During fiscal 2014, the Company’s tax credits primarily related to the U.S. Research and Experimentation tax credit (“R&D” credit”) including the impact of the credit which expired at December 31, 2013.

During fiscal 2013, the Company’s tax credits primarily related to the U.S. Research and Experimentation tax credit (“R&D credit”) including the impact of retroactively reinstating the credit to January 1, 2012.

(2) During fiscal 2014, primarily as a result of the divestiture and required to be reported in continuing operations, the Company increased the valuation allowance in the amount of $8.5 million related to the Brownfield Redevelopment tax credit carryforward deferred tax assets (“Brownfield tax credit carryforward assets”). The tax credits expected to be used prior to the divestiture have decreased primarily due to a reduction in projected taxable income sourced to the State of Michigan. A significant portion of the discontinued operations were conducted in Michigan. The Company adjusted the carrying value of the Brownfield tax credit carryforward asset to its more likely than not realizable value.

During fiscal 2012, as a result of the State of Michigan amending the Income Tax Act, the Company released a valuation allowance of $4.8 million related to the Brownfield tax credit carryforward asset. The Company adjusted the carrying value of the Brownfield tax credit carryforward asset to its more likely than not realizable value.

Deferred Tax Assets and Liabilities

Temporary differences and carryforwards that give rise to a significant portion of deferred tax assets and liabilities were as follows (in thousands):

	March 31,
	2014			2013
Deferred tax assets:
Deferred revenue	$	34,486		$	31,892
Intangible assets		5,134			10,218
Accrued expenses		41,761			37,024
Net operating loss carryforwards		11,798			16,097
Other tax carryforwards		66,375			54,014
Other		425			6,572
Total deferred tax assets before valuation allowance		159,979			155,817
Less: Valuation allowance		41,437			35,581
Net deferred tax assets		118,542			120,236
Deferred tax liabilities:
Intangible assets		47,817			59,742
Capitalized research and development costs		23,974			24,988
Fixed assets		22,834			25,380
Other		7,923			4,404
Total deferred tax liabilities		102,548			114,514
Net deferred tax assets (liabilities)	$	15,994		$	5,722
Current deferred tax assets	$	35,871		$	37,618
Long-term deferred tax assets		16,514			31,754
Long-term deferred tax liabilities		(36,391	)		(63,650	)
Net deferred tax assets (liabilities)	$	15,994		$	5,722

Net Operating Losses, Capital Losses and Tax Credit Carryforwards

At March 31, 2014, the Company had net operating losses, capital losses and tax credit carryforwards for income tax purposes of $78.1 million that expire in the tax years as follows (in thousands):

	March 31, 2014		Expiration
U.S. federal and state net operating losses	$	2,936		2018 - 2034
Non-U.S. net operating losses		6,972	Indefinite
Non-U.S. net operating losses		1,890		2020 - 2023
Non-U.S. capital loss carryforwards		26,694	Indefinite
U.S. federal and state tax credit carryforwards		39,681		2015 - 2029
	$	78,173

Unrecognized Tax Benefits Reconciliation

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended March 31, 2014, 2013 and 2012 (in thousands):

	Year Ended March 31,
	2014			2013			2012
Gross unrecognized tax benefit at April 1,	$	17,785		$	20,663		$	21,114
Gross increases to tax positions for prior periods		2,829			2,441			1,859
Gross decreases to tax positions for prior periods		(460	)		(3,864	)		(1,515	)
Gross increases to tax positions for current period		3,500			1,609			2,623
Increase (decrease) from foriegn currency		2			(3	)		64
Settlements		(113	)		(790	)		(2,416	)
Lapse of statute of limitations		(2,399	)		(2,271	)		(1,066	)
Gross unrecognized tax benefit at March 31,	$	21,144		$	17,785		$	20,663