Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.21.1
INCOME TAXES (Tables)
 12 Months Ended
Mar. 31, 2021
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, 2021, 2020 and 2019 is as follows (in thousands):
Year Ended March 31,
2021 2020 2019
U.S. $ (36,648) $ (6,318) $ (40,935)
Foreign 1,428  1,911  514 
Total $ (35,220) $ (4,407) $ (40,421)
Schedule of income tax provision
Income tax provision consists of the following (in thousands):
Year Ended March 31,
2021 2020 2019
Current tax expense
   Federal $ (76) $ (115) $ (217)
   State 339  106  31 
   Foreign 747  1,271  1,103 
      Total current tax expense 1,010  1,262  917 
Deferred tax expense
   Federal (577) —  — 
   State 9  33  32 
   Foreign (203) (492) 1,427 
      Total deferred tax expense (benefit) (771) (459) 1,459 
Income tax provision $ 239  $ 803  $ 2,376 
Schedule of federal income tax rate reconciliation
The income tax provision differs from the amount computed by applying the federal statutory rate of 21% to loss before income taxes as follows (in thousands):
For the year ended March 31,
2021 2020 2019
Expiration of attributes $ 9,862  $ 11,679  $ 12,268 
Valuation allowance 5,444  (2,639) 10,913 
Permanent items 1,295  914  359 
Equity compensation 345  280  905 
Tax reform —  —  (207)
Credit monetization —  —  — 
Foreign taxes (129) 1,612  (2,133)
State income taxes (969) (20) (997)
Research and development credits (1,829) (1,566) (879)
Uncertain tax positions (6,695) (8,654) (9,278)
Expense at the federal statutory rate (7396) (925) (8488)
Other 311  122  (87)
Income tax provision $ 239  $ 803  $ 2,376 
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,
2021 2020
Deferred tax assets
Loss carryforwards $ 76,153  $ 85,638 
Deferred revenue 21,839  17,043 
Tax credits 16,574  17,416 
Disallowed interest 12,132  8,958 
Other accruals and reserves not currently deductible for tax purposes 8,192  16,339 
Capitalized research and development 7,811  — 
Lease obligations 1,747  3,413 
Inventory 1,374  924 
Accrued warranty expense 569  650 
Acquired intangibles 454  2,660 
Gross deferred tax assets 146,845  153,041 
Valuation allowance (143,263) (137,814)
   Total deferred tax assets, net of valuation allowance $ 3,582  $ 15,227 
Deferred tax liabilities
Depreciation $ (1,440) $ (1,440)
Lease assets (1,670) (3,413)
Other (1,013) (967)
   Total deferred tax liabilities $ (4,123) $ (5,820)
           Net deferred tax assets (liabilities) $ (541) $ 9,407 
Reconciliation of gross unrecognized tax benefits
A reconciliation of the gross unrecognized tax benefits is as follows (in thousands):
For the year ended March 31,
2021 2020 2019
Beginning Balance $ 107,282  $ 116,032  $ 150,559 
Increase in balances related to tax positions in current period 2,560  2,275  1,718 
Increase in balances related to tax positions in prior period —  144  — 
Increase in balances related to acquisitions 511  —  — 
Decrease in balances related to tax positions in prior period (522) (4) (25,095)
Decrease in balances due to lapse in statute of limitations (8,712) (11,165) (11,150)
Ending balance $ 101,119  $ 107,282  $ 116,032