Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes

v3.25.1
Income Taxes
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income taxes included in the consolidated income statement consisted of the following:
Year Ended March 31, 2025 Year Ended March 31, 2024 Year Ended March 31, 2023
Current provision:
Federal provision $ 3,725  $ 5,643  $ 6,329 
Foreign provision 12,795  11,315  12,619 
State provision 1,164  1,207  1,181 
Deferred provision:
Federal deferred benefit 252  (329) (2,648)
Foreign deferred benefit (1,426) (1,626) (1,649)
State deferred benefit 94  (124) (265)
Total provision for income taxes $ 16,604  $ 16,086  $ 15,567 
    Deferred income tax assets and liabilities were as follows:
March 31,
2025 2024
Deferred tax assets:
Accrued liabilities and reserves $ 6,752  $ 7,776 
Capitalized research and development costs 3,744  2,869 
Foreign deferred benefits 1,162  1,326 
Stock option compensation 886  899 
Net operating loss carryforward 428  441 
Inventories 801  773 
Capitalized transaction costs 373  431 
Tax credit carryforward 674  218 
Unrealized gain on hedge 21  25 
Valuation allowance (553) (201)
Total deferred tax assets $ 14,289  $ 14,557 
Deferred tax liabilities:
Intangible assets $ (6,278) $ (5,916)
Intangible and other - foreign (9,632) (10,121)
Property, plant and equipment (5,546) (5,994)
Prepaid expenses (327) (281)
Undistributed foreign earnings (1,367) (610)
Total deferred tax liabilities $ (23,150) $ (22,922)
Net deferred tax liability $ (8,861) $ (8,365)
The Company expects that it is more likely than not that the results of future operations will generate sufficient taxable income to realize its domestic and foreign deferred tax assets, net of valuation allowance reserves.
    The U.S. and non-U.S. components of income from continuing operations before income taxes were as follows:
Year Ended March 31, 2025 Year Ended March 31, 2024 Year Ended March 31, 2023
U.S. $ 30,135  $ 28,065  $ 17,792 
Non-U.S. 39,984  39,609  31,441 
Income from continuing operations $ 70,119  $ 67,674  $ 49,233 
The difference between the provision for income taxes and the amount that would result from applying the U.S. statutory tax rate to income before provision for income taxes is as follows:
Year Ended March 31, 2025 Year Ended March 31, 2024 Year Ended March 31, 2023
Notional U.S. federal income tax expense at statutory rate $ 14,725  $ 14,252  $ 10,339 
Adjustments to reconcile to the income tax provision:
Rate difference-international subsidiaries 1,252  482  1,602 
Withholding on intercompany dividends and income 1,726  —  — 
Charges/(benefits) related to uncertain tax positions (1,046) 84  77 
U.S. state income tax provision, net 994  912  654 
Undistributed foreign earnings 683  371  (315)
Tax credits available in the U.S. (902) (425) (307)
Change in valuation allowance 353  (37) 10 
Russian loss not benefited —  207  2,768 
Non-deductible charges (39) 741  421 
Stock compensation (58) 178  825 
Impact of U.S. global intangible taxes and benefits (612) (560) (622)
Other, net (472) (119) 115 
Provision for income taxes $ 16,604  $ 16,086  $ 15,567 
We operate in multiple international geographies. Our tax expense is reflective of the blended tax rate across those jurisdictions. We do not assert a permanent reinvestment position in any of our foreign subsidiaries. Accordingly, we expect to repatriate certain earnings that will be subject to withholding taxes.  At March 31, 2025 we have accrued $1,367 as an additional deferred tax liability associated with the future repatriation of earnings from jurisdictions that withhold taxes on foreign paid dividends.  
During the year ended March 31, 2023 and in connection with the strategic assessment related to our Russian subsidiary, the Company had losses that were primarily not benefited for tax. The net tax impact of the losses for the write-down of the Russian subsidiary was $2,768 or a 5.6% increase in tax expense.
As of March 31, 2025, the Company had foreign tax net operating loss carry-forwards ("NOLs") of $1,512. Of this amount, $544 may be carried forward indefinitely. As of March 31, 2025, the tax years 2021 through 2024 remain open to examination by the major taxing jurisdictions to which we are subject.
During fiscal 2025, we released our reserves for uncertain tax position which consisted of positions related to the final Transition Tax, which is associated with the Tax Act of 2018. We released these reserves as they are no longer subject to examination by tax authorities. Activity within our reserve for uncertain tax positions as well as the penalties and interest are recorded as a component of the Company's income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended March 31, 2025 Year Ended March 31, 2024
Beginning balance $ 1,046  $ 962 
Release of reserve (1,046) — 
Interest and penalties on prior reserves —  84 
Reserve for uncertain income taxes - included in "Other non-current liabilities" $ —  $ 1,046