Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.1
INCOME TAXES (Tables)
12 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of pre-tax income (loss)
Pre-tax loss reflected in the consolidated statements of operations for the years ended March 31, 2020, 2019 and 2018 is as follows (in thousands):
 
Year Ended March 31,
 
2020
 
2019
 
2018
U.S.
$
(6,318
)
 
$
(40,935
)
 
$
(46,923
)
Foreign
1,911

514

514

 
464

Total
$
(4,407
)
 
$
(40,421
)
 
$
(46,459
)
Schedule of income tax provision (benefit)
Income tax provision (benefit) consists of the following (in thousands):
 
Year Ended March 31,
 
2020
 
2019
 
2018
Current tax expense
 
 
 
 
 
   Federal
$
(115
)
 
$
(217
)
 
$
(3,484
)
   State
106

 
31

 
26

   Foreign
1,271

 
1,103

 
206

      Total current tax expense
1,262

 
917

 
(3,252
)
Deferred tax expense


 


 


   State
33

 
32

 
32

   Foreign
(492
)
 
1,427

 
107

      Total deferred tax expense
(459
)
 
1,459

 
139

Income tax provision (benefit)
$
803

 
$
2,376

 
$
(3,113
)
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 2020 and 2019, and 31.5% for 2018 to income (loss) before income taxes as follows (in thousands):
 
For the year ended March 31,
 
2020
 
2019
 
2018
Expense (benefit) at the federal statutory rate
$
(925
)
 
$
(8,488
)
 
$
(14,634
)
Equity compensation
280

 
905

 
1,024

Permanent items
914

 
359

 
564

Foreign taxes
1,612

 
(2,133
)
 
1,336

State income taxes
(20
)
 
(997
)
 
(830
)
Valuation allowance
(2,639
)
 
10,913

 
(42,784
)
Uncertain tax positions
(8,654
)
 
(9,278
)
 
(336
)
Tax reform
—

 
(207
)
 
52,682

Credit monetization
—

 
—

 
(323
)
Expiration of attributes
11,679

 
12,268

 
410

Research and development credits
(1,566
)
 
(879
)
 
(1,714
)
Other
122

 
(87
)
 
1,492

Income tax provision
$
803

 
$
2,376

 
$
(3,113
)
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,
 
2020
 
2019
Deferred tax assets
 
 
 
Inventory valuation method
$
924

 
$
882

Accrued warranty expense
650

 
814

Distribution reserves
187

 
2,137

Loss carryforwards
85,638

 
93,308

Tax credits
17,416

 
20,346

Restructuring charge accruals
—

 
678

Deferred revenue
17,043

 
13,094

Acquired intangibles
2,660

 
2,822

Lease obligations
3,413

 
—

Other accruals and reserves not currently deductible for tax purposes
16,152

 
7,051

Gross deferred tax assets
144,083

 
141,132

Valuation allowance
(137,814
)
 
(140,359
)
   Total deferred tax assets, net of valuation allowance
$
6,269

 
$
773

Deferred tax liabilities
 
 
 
Depreciation
$
(1,440
)
 
$
(450
)
Lease assets
(3,413
)
 
—

Other
(967
)
 
(524
)
   Total deferred tax liabilities
$
(5,820
)
 
$
(974
)
           Net deferred tax assets (liabilities)
$
449

 
$
(201
)
Reconciliation of gross unrecognized tax benefits
A reconciliation of the gross unrecognized tax benefits follows (in thousands):
 
For the year ended March 31,
 
2020
 
2019
 
2018
Beginning Balance
$
116,032

 
$
150,559

 
$
170,730

Increase in balances related to tax positions in current period
2,275

 
1,718

 
3,298

Increase in balances related to tax positions in prior period
144

 
—

 
25

Decrease in balances related to tax positions in prior period
(4
)
 
(25,095
)
 
(20,692
)
Decrease in balances due to lapse in statute of limitations
(11,165
)
 
(11,150
)
 
(810
)
Settlement and effective settlements with tax authorities and related remeasurements
—

 
—

 
(1,992
)
Ending balance
$
107,282

 
$
116,032

 
$
150,559