• Filing Date: 2020-06-24
  • Form Type: 10-K
  • Description: Annual report
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