Income Taxes (Tables)

12 Months Ended

Mar. 31, 2025

Income (loss) before income taxes consists of the following:


	Year Ended March 31,
(In thousands)	2025		2024		2023
United States	$	249,803	$	239,405	$	(130,331)
Foreign	34,386		36,620		36,416

Total income (loss) before income taxes	$	284,189	$	276,025	$	(93,915)

The provision (benefit) for income taxes consists of the following:


	Year Ended March 31,
(In thousands)	2025		2024		2023
Current
Federal	$	34,156	$	28,302	$	33,475
State	5,914		3,662		3,721
Foreign	11,092		11,652		11,959
Deferred
Federal	12,237		20,582		(52,473)
State	5,210		3,034		(8,201)
Foreign	975		(546)		(90)
Total provision (benefit) for income taxes	$	69,584	$	66,686	$	(11,609)

The principal components of our deferred tax balances are as follows:


	March 31,
(In thousands)	2025		2024
Deferred Tax Assets
Allowance for credit losses and sales returns	$	2,920	$	4,070
Inventory capitalization	2,069		1,685
Inventory reserves	1,221		1,353

State income taxes	9,631		8,246
Accrued liabilities	1,275		1,431
Accrued compensation	3,653		3,230
Stock compensation	3,506		3,580
Research and development	6,231		4,179

Lease liability	12,086		2,604
Unrealized foreign exchange loss	245		204
Other	11,268		10,319
Total deferred tax assets	$	54,105	$	40,901

Deferred Tax Liabilities
Property, plant and equipment	$	(9,081)	$	(9,403)
Intangible assets	(451,368)		(430,308)

Right-of-use asset	(12,413)		(2,371)

Total deferred tax liabilities	$	(472,862)	$	(442,082)



Net deferred tax liability	$	(418,757)	$	(401,181)

A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:


	Year Ended March 31,
	2025			2024			2023
(In thousands)			%			%			%
Income tax provision (benefit) at statutory rate	$	59,680	21.0	$	57,965	21.0	$	(19,722)	21.0
Foreign tax provision	4,691		1.7	3,164		1.1	4,168		(4.4)
State income taxes provision (benefit), net of federal income tax benefit	10,187		3.6	6,004		2.2	(5,300)		5.6


Goodwill impairment	—		—	—		—	10,232		(10.9)
Research and development	(600)		(0.2)	(700)		(0.3)	(514)		0.5
Compensation limitations	1,312		0.5	1,910		0.7	1,483		(1.6)

Foreign tax credit	(622)		(0.2)	(889)		(0.3)	(1,297)		1.4

Uncertain tax positions	(3,694)		(1.3)	390		0.1	(91)		0.1
Other	(1,370)		(0.6)	(1,158)		(0.3)	(568)		0.7
Total provision (benefit) for income taxes	$	69,584	24.5	$	66,686	24.2	$	(11,609)	12.4

Uncertain tax liability activity is as follows:


	2025		2024		2023
(In thousands)
Balance – beginning of year	$	3,325	$	3,295	$	3,562

Reductions based on lapse of statute of limitations	(2,649)		(417)		(495)
Payments and other movements	390		447		228
Balance – end of year	$	1,066	$	3,325	$	3,295

Prestige Consumer Healthcare Inc. 10-K