INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense for fiscal years 2016, 2015, and 2014 consisted of the following:



	Fiscal Year Ended March 31,
(in thousands)	2014			2015			2016
Current:
Federal	$	28,859		$	26,938		$	15,702
State	1,263			2,685			1,934
Foreign	4,384			4,253			4,644
Total current provision for income taxes	34,506			33,876			22,280
Deferred:
Federal	(4,675		)	(1,148		)	(7,767		)
State	(629		)	(1,353		)	(1,103		)
Foreign	(480		)	1,575			374
Total deferred benefit for income taxes	(5,784		)	(926		)	(8,496		)
Income tax expense	$	28,722		$	32,950		$	13,784

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes for fiscal years 2016, 2015, and 2014 are as follows:



	Fiscal Year Ended March 31,
(in thousands)	2014		2015		2016
United States	$	85,231	$	83,583	$	42,184
Foreign	55,908		61,668		39,992
Income before income taxes	$	141,139	$	145,251	$	82,176

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation between statutory federal income taxes and the income tax expense for fiscal years 2016, 2015, and 2014:



	Fiscal Year Ended March 31,
(in thousands)	2014			2015			2016
Tax expense at statutory rate	$	49,399		$	50,838		$	28,762
Foreign operations taxed at different rates	(16,175		)	(15,839		)	(9,478		)
State taxes, net of federal benefit	634			1,331			831
Research and development credit	(1,805		)	(2,460		)	(3,133		)
Unwind of stock based compensation cost sharing	—			—			(2,855		)
Other, net	(3,331		)	(920		)	(343		)
Income tax expense	$	28,722		$	32,950		$	13,784

Schedule of Deferred Tax Assets and Liabilities

he Company early adopted the update to balance sheet classification of deferred taxes (Accounting Standards Update 2015-17), which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as non-current on the balance sheets. The Company early adopted this standard on a prospective basis and included the current portion of deferred tax assets within the non-current portion of deferred tax assets within the consolidated balance sheet as of March 31, 2016. There was no impact on the Company's results of operations as a result of the adoption of this standard.

Significant components of the Company's deferred tax assets and liabilities as of March 31, 2016 and 2015 are as follows:



	March 31,
(in thousands)	2015			2016
Accruals and other reserves	$	5,100		$	5,896
Deferred Compensation	2,066			3,750
Net operating loss carry forward	3,043			2,955
Stock compensation	9,865			12,561
Prepaid cost sharing	—			6,199
Tax credits	3,406			3,642
Other deferred tax assets	2,903			1,684
Valuation allowance	(1,940		)	(1,962		)
Total deferred tax assets	24,443			34,725
Deferred gains on sales of properties	(1,756		)	(1,761		)
Unremitted earnings of certain subsidiaries	(3,064		)	(4,481		)
Fixed asset depreciation	(4,650		)	(4,846		)
Total deferred tax liabilities	(9,470		)	(11,088		)
Net deferred tax assets⁽¹⁾	$	14,973		$	23,637

⁽¹⁾ The Company's deferred tax assets for the fiscal year ending March 31, 2016 and the long-term portion of the Company's deferred tax assets for the fiscal year ending March 31, 2015, are included as a component of other assets on the consolidated balance sheets.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows:



	March 31,
(in thousands)	2014			2015			2016
Balance at beginning of period	$	11,072		$	12,571		$	12,821
Increase (decrease) of unrecognized tax benefits related to prior years	641			(244		)	(598		)
Increase of unrecognized tax benefits related to the current year	2,427			1,908			2,252
Reductions to unrecognized tax benefits related to settlements with taxing authorities	—			—			(149		)
Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations	(1,569		)	(1,414		)	(1,634		)
Balance at end of period	$	12,571		$	12,821		$	12,692