Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.2
INCOME TAXES (Tables)
12 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of pre-tax income (loss)
Pre-tax loss reflected in the Consolidated Statements of Operations is as follows (in thousands):
 
   
For the year ended March 31,
 
   
2019
   
2018
   
2017
(As Restated)
 
U.S.
  $ (40,935   $ (46,923   $ (3,794
Foreign
    514       464       3,042  
   
 
 
   
 
 
   
 
 
 
Total
  $ (40,421   $ (46,459   $ (752
   
 
 
   
 
 
   
 
 
 
Schedule of income tax provision
The Company’s provision for income tax consists of the following (in thousands):
 
   
For the year ended March 31,
 
   
2019
   
2018
   
2017
(As Restated)
 
Current tax expense
                       
Federal
  $ (217   $ (3,484   $ (385
State
    31       26       37  
Foreign
    1,103       206       1,826  
   
 
 
   
 
 
   
 
 
 
Total current
    917       (3,252     1,478  
Deferred expense
                       
State
    32       32       37  
Foreign
    1,427       107       141  
   
 
 
   
 
 
   
 
 
 
Total deferred
    1,459       139       178  
   
 
 
   
 
 
   
 
 
 
Income tax expense (benefit)
  $ 2,376     $ (3,113   $ 1,656  
   
 
 
   
 
 
   
 
 
 
Schedule of federal income tax rate reconciliation
The income tax provision differs from the amount computed by applying the federal statutory rate of 21% for 2019, 31.5% for 2018, and 35% for 2017 to income (loss) before income taxes as follows (in thousands):
 
   
For the year ended March 31,
 
   
2019
   
2018
   
2017
(As Restated)
 
Benefit at the federal statutory rate
  $ (8,488   $ (14,634   $ (263
Equity compensation
    905       1,024       2,472  
Permanent items
    359       564       640  
Foreign taxes
    (2,133     1,336       (159
State income taxes
    (997     (830     (88
Valuation allowance
    10,913       (42,784     (2,745
Uncertain tax positions
    (9,278     (336     1,347  
Tax reform
    (207     52,682       —    
Credit monetization
    —         (323     (120
Expiration of attributes
    12,268       410       1,880  
Other
    (966     (222     (1,308
   
 
 
   
 
 
   
 
 
 
Income tax expense (benefit)
  $ 2,376     $ (3,113   $ 1,656  
   
 
 
   
 
 
   
 
 
 
Schedule of components of deferred tax assets and liabilities
Significant components of deferred tax assets and liabilities are as follows (in thousands):
 
   
As of March 31,
 
   
2019
   
2018
   
2017

(Restated)
 
Deferred tax assets
                       
Inventory valuation method
  $ 882     $ 1,364     $ 2,006  
Accrued warranty expense
    814       571       1,370  
Distribution reserves
    2,137       2,119       3,028  
Loss carryforwards
    93,308       62,369       55,784  
Tax credits
    20,346       20,082       20,767  
Restructuring charge accruals
    678       1,371       2,333  
Deferred revenue
    13,094       32,936       50,319  
Acquired intangibles
    2,822       4,776       10,752  
Depreciation
    —         —         1,226  
Other accruals and reserves not currently deductible for tax purposes
    7,051       7,146       12,003  
   
 
 
   
 
 
   
 
 
 
      141,132       132,734       159,588  
Less valuation allowance
    (140,359     (130,048     (154,296
   
 
 
   
 
 
   
 
 
 
Deferred tax assets
    773       2,686       5,292  
Deferred tax liabilities
                       
Depreciation
    (450     (638     —    
Tax on unremitted foreign earnings
    —         —         (1,332
Other
    (524     (735     (2,552
   
 
 
   
 
 
   
 
 
 
Deferred tax liabilities
    (974     (1,373     (3,884
   
 
 
   
 
 
   
 
 
 
Net deferred tax asset
  $ (201   $ 1,313     $ 1,408  
   
 
 
   
 
 
   
 
 
 
Reconciliation of gross unrecognized tax benefits
A reconciliation of the gross unrecognized tax benefits follows (in thousands):
 
   
For the year ended March 31,
 
   
2019
   
2018
   
2017

(As Restated)
 
Beginning balance
  $ 150,559     $ 170,730     $ 171,374  
Increase in balances related to tax positions in current period
    1,718       3,298       2,789  
Decrease in balances related to tax positions in prior period
    (25,095     (20,692     (1,350
Decrease in balances due to lapse of statute of limitations
    (11,150     (810     (1,672
Settlement and effective settlements with tax authorities and related remeasurements
    —         (1,992     (411
Increase in balances related to tax positions in prior period
    —         25       —    
   
 
 
   
 
 
   
 
 
 
Ending balance
  $ 116,032     $ 150,599     $ 170,730