Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Trading Symbol | TARO |
Entity Registrant Name | TARO PHARMACEUTICAL INDUSTRIES LTD |
Entity Central Index Key | 0000906338 |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Ordinary Shares, NIS 0.0001 nominal |
Security Exchange Name | NYSE |
Entity File Number | 001-35463 |
Entity Incorporation, State or Country Code | L3 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Address, Address Line One | 14 Hakitor Street |
Entity Address, City or Town | Haifa Bay |
Entity Address, Postal Zip Code | 2624761 |
Entity Address, Country | IL |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Auditor Name | Ziv Haft |
Auditor Location | Tel Aviv, Israel |
Auditor Firm ID | 1185 |
Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 37,584,631 |
Founders' Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,600 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 3 Skyline Drive |
Entity Address, City or Town | Hawthorne |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10532 |
Contact Personnel Name | William Coote |
City Area Code | 914 |
Local Phone Number | 345-9000 |
Contact Personnel Fax Number | 914-345-6169 |
Contact Personnel Email Address | William.Coote@Taro.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 251,134 | $ 605,177 |
Short-term bank deposits | 47,586 | |
Marketable securities | 522,028 | 418,480 |
Accounts receivable and other: | ||
Trade, net | 246,972 | 213,539 |
Other receivables and prepaid expenses | 59,727 | 53,347 |
Inventories | 210,439 | 180,292 |
TOTAL CURRENT ASSETS | 1,337,886 | 1,470,835 |
LONG-TERM MARKETABLE SECURITIES | 435,189 | 557,209 |
PROPERTY, PLANT AND EQUIPMENT, NET | 199,692 | 205,508 |
DEFERRED INCOME TAXES | 124,882 | 142,007 |
GOODWILL | 11,820 | 7,191 |
OTHER ASSETS | 66,893 | 24,123 |
TOTAL ASSETS | 2,176,362 | 2,406,873 |
Accounts payable: | ||
Trade payables | 68,232 | 61,166 |
Other current liabilities | 363,886 | 615,135 |
TOTAL CURRENT LIABILITIES | 432,118 | 676,301 |
LONG-TERM LIABILITIES: | ||
Deferred income taxes | 1,907 | |
Other long-term liabilities | 32,799 | 33,208 |
TOTAL LONG-TERM LIABILITIES | 32,799 | 35,115 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
TOTAL LIABILITIES | 464,917 | 711,416 |
Taro shareholders' equity: | ||
Ordinary shares of NIS 0.0001 par value: Authorized at March 31, 2022 and March 31, 2021: 200,000,000 shares; Issued at March 31, 2022 and March 31, 2021: 45,116,262 shares Outstanding at March 31, 2022 and March 31, 2021: 37,584,631 and 37,926,044 shares, respectively | 679 | 679 |
Founders' shares of NIS 0.00001 par value: Authorized, issued and outstanding at March 31, 2022 and March 31, 2021: 2,600 shares | 1 | 1 |
Additional paid-in capital | 262,445 | 262,445 |
Accumulated other comprehensive loss, net of taxes | (168,965) | (151,621) |
Treasury stock at March 31, 2022 and March 31, 2021: 7,531,631 and 7,190,218 shares, respectively | (771,406) | (746,472) |
Accumulated earnings | 2,388,691 | 2,338,617 |
Taro shareholders' equity | 1,711,445 | 1,703,649 |
Non-controlling interest | (8,192) | |
TOTAL SHAREHOLDERS’ EQUITY | 1,711,445 | 1,695,457 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,176,362 | $ 2,406,873 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 45,116,262 | 45,116,262 |
Ordinary shares, shares outstanding | 37,584,631 | 37,926,044 |
Founders' stock, par value | $ 0.00001 | $ 0.00001 |
Founders' stock, shares authorized | 2,600 | 2,600 |
Founders' stock, shares issued | 2,600 | 2,600 |
Founders' stock, shares outstanding | 2,600 | 2,600 |
Treasury stock, shares | 7,531,631 | 7,190,218 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | |||
Sales, net | $ 561,347 | $ 548,970 | $ 644,769 |
Cost of sales | 268,212 | 252,314 | 245,044 |
Impairment | 13 | ||
Gross profit | 293,122 | 296,656 | 399,725 |
Operating expenses: | |||
Research and development | 54,540 | 60,152 | 59,777 |
Selling, marketing, general and administrative | 113,677 | 91,355 | 93,413 |
Settlements and loss contingencies | 61,446 | 558,924 | |
Total operating expenses | 229,663 | 710,431 | 153,190 |
Operating (loss) income | 63,459 | (413,775) | 246,535 |
Financial income, net | (10,172) | (19,809) | (48,482) |
Other gain, net | 4,227 | 2,893 | 3,018 |
Income (loss) before income taxes | 77,858 | (391,073) | 298,035 |
Tax expense | 19,592 | 9,667 | 53,485 |
Net (loss) income | 58,266 | (400,740) | 244,550 |
Net (loss) income attributable to non-controlling interest | (14,087) | 309 | |
Net (loss) income attributable to Taro | $ 58,266 | $ (386,653) | $ 244,241 |
Net (loss) income per ordinary share attributable to Taro: | |||
Basic and Diluted | $ 1.55 | $ (10.12) | $ 6.35 |
Weighted-average number of ordinary shares used to compute net (loss) income per share: | |||
Basic and Diluted | 37,641,087 | 38,209,726 | 38,460,056 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) attributable to Taro | $ 58,266 | $ (386,653) | $ 244,241 |
Other comprehensive (loss) income: | |||
Change in unrealized (loss) gain from marketable securities | (17,029) | 7,738 | (16,415) |
Change in unrealized (loss) gain from hedging instruments | (315) | 3,678 | (2,513) |
Foreign currency translation adjustments | (1) | ||
Total other comprehensive income (loss) attributable to Taro | (17,344) | 11,416 | (18,929) |
Total comprehensive income (loss) attributable to Taro | $ 40,922 | $ (375,237) | $ 225,312 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Shares [Member] | Retained Earnings [Member] | Total Taro Shareholders' Equity [Member] | Non-controlling Interest [Member] |
Balance at Mar. 31, 2019 | $ 1,911,122 | $ 680 | $ 262,445 | $ (144,108) | $ (694,510) | $ 2,481,029 | $ 1,905,536 | $ 5,586 |
Balance, shares at Mar. 31, 2019 | 38,539,000 | |||||||
Repurchase of treasury stock | $ (26,984) | (26,984) | (26,984) | |||||
Repurchase of treasury stock, shares | (280,719) | (281,000) | ||||||
Comprehensive (loss) income, net of tax | $ (18,929) | (18,929) | (18,929) | |||||
Unrealized gain from hedging | (2,513) | |||||||
Foreign currency translation adjustments | (1) | |||||||
Net income (loss) | 244,550 | 244,241 | 244,241 | 309 | ||||
Balance at Mar. 31, 2020 | 2,109,759 | $ 680 | 262,445 | (163,037) | (721,494) | 2,725,270 | 2,103,864 | 5,895 |
Balance, shares at Mar. 31, 2020 | 38,258,000 | |||||||
Repurchase of treasury stock | $ (24,978) | (24,978) | (24,978) | |||||
Repurchase of treasury stock, shares | (332,033) | (332,000) | ||||||
Comprehensive (loss) income, net of tax | $ 11,416 | 11,416 | 11,416 | |||||
Unrealized gain from hedging | 3,678 | |||||||
Net income (loss) | (400,740) | (386,653) | (386,653) | (14,087) | ||||
Balance at Mar. 31, 2021 | 1,695,457 | $ 680 | 262,445 | (151,621) | (746,472) | 2,338,617 | 1,703,649 | (8,192) |
Balance, shares at Mar. 31, 2021 | 37,926,000 | |||||||
Repurchase of treasury stock | $ (24,934) | (24,934) | (24,934) | |||||
Repurchase of treasury stock, shares | (341,413) | (341,000) | ||||||
Comprehensive (loss) income, net of tax | $ (17,344) | (17,344) | (17,344) | |||||
Unrealized gain from hedging | (315) | |||||||
Transaction with minority interest | (8,192) | (8,192) | $ 8,192 | |||||
Net income (loss) | 58,266 | 58,266 | 58,266 | |||||
Balance at Mar. 31, 2022 | $ 1,711,445 | $ 680 | $ 262,445 | $ (168,965) | $ (771,406) | $ 2,388,691 | $ 1,711,445 | |
Balance, shares at Mar. 31, 2022 | 37,585,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 58,266 | $ (400,740) | $ 244,550 |
Adjustments required to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 25,915 | 23,680 | 21,383 |
Realized loss on sale of long-lived assets | 689 | 92 | 28 |
Change in derivative instruments, net | (631) | (236) | (2,649) |
Effect of exchange differences on intercompany balances | (2) | ||
Foreign exchange effect of marketable securities and bank deposits | (447) | (4,588) | (11,600) |
Deferred income taxes, net | 23,200 | (38,413) | 7,584 |
(Increase) decrease in trade receivables, net | (6,229) | 21,683 | 2,724 |
(Increase) decrease in other receivables, prepaid expenses and other | (3,010) | (7,235) | 1,247 |
Increase in inventories, net | (2,069) | (27,219) | (4,994) |
(Increase) decrease in income tax receivables | (2,441) | (9,090) | 10,890 |
(Decrease) Increase in trade payables | (2,129) | 32,308 | (6,202) |
(Decrease) Increase in other accounts payable and accrued expenses | (263,661) | 454,609 | 1,423 |
Increase (decrease) in income tax payables | 512 | (4,397) | 5,561 |
Expense from amortization of marketable securities bonds, net | 13,339 | 5,316 | 1,660 |
Net cash (used in) provided by operating activities | (158,698) | 45,770 | 271,605 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (11,800) | (16,991) | (26,631) |
Investment in other intangible assets | (243) | (161) | (1,783) |
Investment in short-term bank deposits, net | (47,586) | ||
Investment in marketable securities | (828,203) | (1,132,501) | (1,222,190) |
Proceeds from marketable securities | 809,119 | 1,217,386 | 952,421 |
(Investment in) proceeds from acquisitions, net of sale of long-lived assets | (99,275) | 8 | 21 |
Cash acquired from acquisition | 7,407 | ||
Net cash (used in) provided by investing activities | (170,581) | 67,741 | (298,162) |
Cash flows from financing activities: | |||
Repurchase of treasury stock | (24,934) | (24,196) | (26,984) |
Net cash used in financing activities | (24,934) | (24,196) | (26,984) |
Effect of exchange rate changes on cash and cash equivalents | 170 | 2,508 | (556) |
(Decrease) Increase in cash and cash equivalents | (354,043) | 91,823 | (54,097) |
Cash and cash equivalents at the beginning of the period | 605,177 | 513,354 | 567,451 |
Cash and cash equivalents at the end of the period | 251,134 | 605,177 | 513,354 |
Cash paid during the year for: | |||
Income taxes | 7,753 | 29,377 | 54,536 |
Cash received during the year for: | |||
Income taxes | 2,351 | 4,093 | 24,331 |
Non-cash investing transactions: | |||
Purchase of property, plant and equipment included in accounts payable | 1,468 | 2,997 | 1,477 |
Investment in intangible assets on credit | 15 | ||
Non-cash financing transactions: | |||
Purchase of treasury stock | 782 | ||
Purchase of marketable securities | $ 3,848 | $ 9,417 | $ 9,159 |
General
General | 12 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | NOTE 1: — GENERAL Taro Pharmaceutical Industries Ltd. (the “Company” or “Taro”) is an Israeli corporation, which operates in Israel and elsewhere through its Israeli, North American, and European subsidiaries (the “Group”). The principal business activities of the Group are the production, research, development and marketing of pharmaceutical products. As of March 22, 2012, the Company’s ordinary shares are traded on the New York Stock Exchange (the “NYSE”), under the symbol “TARO.” As used herein, the terms “we,” “us,” “our,” “Taro,” and the “Company” mean Taro Pharmaceutical Industries Ltd. and its subsidiaries, unless otherwise indicated. The activities of the Group in North America are performed by Taro Pharmaceuticals Inc. (“Taro Canada”) and Taro Pharmaceuticals U.S.A., Inc. (“Taro U.S.A.”). Taro International Ltd. in Israel is engaged in the pharmaceutical activities of the Group outside North America. The Group manufactures generic and proprietary drug products in facilities located in Israel and Canada, and manufactures bulk active pharmaceutical ingredients in its Israel facility. The Group’s research and development facilities are located in Israel and Canada. The majority of the Group’s sales are in North America, primarily in the U.S.A. In North America, the Company sells and distributes its products principally to drug industry wholesalers, drug store chains, and mass merchandisers. In Canada, the Group also sells and distributes to hospitals. In Israel, the Group sells and distributes its products principally to healthcare institutions, drug store chains, and private pharmacies. In the generic pharmaceutical industry, selling prices and related profit margins tend to decrease as products mature due to increased competition from other generic pharmaceutical manufacturers as they gain approval from the U.S. Food and Drug Administration (the “FDA”), the Canadian Health Products and Food Branch Inspectorate, and the Israeli and other Ministries of Health (“Government Agencies”) to manufacture equivalent products. The Group’s future operating results are dependent on, among other things, its ability to introduce new products and maintain its approvals to market existing drugs. While non-compliance with Government Agencies’ regulations can result in refusal to allow country entry, seizure, fines, or injunctive actions to prevent the sale of products, no material actions against the Group or its products have recently occurred. The Group believes that it is in material compliance with all Government Agencies’ regulations. While the majority of the Company’s products are either synthesized by the Company itself or are derived from multiple source materials, some raw materials and certain products are currently obtained from single suppliers. The Company does not believe that any interruption of supply from a single supplier would have a material adverse effect on the Company’s results of operations and financial position. To date, the Group has not experienced difficulties in obtaining raw materials or other materials. Sun Pharmaceutical Industries Ltd. (“Sun”), the Company’s majority shareholder, owns, or controls as of March 31, 2022, 29,497,813 , or 78.5 % , of the Company’s ordinary shares, and with the Company’s founders’ shares, 85.7 % of the vote attributable to the share equity of the Company. As of July 20, 2022, Sun owns, or controls 78.5 % of the Company’s ordinary shares and 85.7 % of the voting power in the Company. On November 4, 2019, the Company announced that its Board of Directors approved a $ 300 million share repurchase of ordinary shares. On November 15, 2019, the Company commenced a modified “Dutch auction” tender offer to repurchase up to $ 225 million in value of its ordinary shares. In accordance with the terms and conditions of the tender offer, which expired on December 16, 2019 , the Company accepted for payment 280,719 ordinary shares at the final purchase price of $ 91.00 per share. During the year ended March 31, 2022, in accordance with a Rule 10b5-1 program, the Company repurchased 341413 shares at an average price of $ 73.03 per share. Through May 31, 2022, under the $ 300 million authorization, the Company has repurchased, in total, 954,165 shares ( 280,719 at an average price of $ 91.00 , 332,033 at an average price of $ 75.23 and 341,413 shares at an average price of $ 73.03 ), leaving $ 224.5 million remaining under the current board authorization . In December 2019, COVID-19, a disease caused by a strain of coronavirus, was first reported, and later declared a pandemic by the World Health Organization in March 2020, spreading globally. It has affected Israel and Canada, where most of our manufacturing takes place, and spread throughout each state in the U.S., our largest market. The COVID-19 pandemic has disrupted global supply chains, created significant volatility of global financial markets, negatively impacted the global economy, and also our U.S. sales. Additionally, it has impacted our business and may materially affect our operations, including manufacturing, supply chain, pre-commercial launch, and clinical trial activities should the pandemic persist. Countries, states, and local governments instituting measures to reduce the spread of COVID-19 have impacted our operations with significant disruptions, uncertainty and economic volatility, higher costs, and capital expenditures. Such measures include quarantines, government restrictions on movement, business closures and suspensions, canceled events and activities, self-isolation, and other voluntary and/or mandated changes in behavior. Our offices are or have been operating under work from home protocols, and our manufacturing and distribution facilities have instituted policies and procedures to protect our employees and operations, including social distancing, the supply and use of personal protective equipment, split shifts and health assessments. We had and, in some instances, continue to have to suspend in-person activities of our field employees because of restrictions on meetings instituted by our customers. These protocols, policies, procedures, and suspension of activities have affected our business operations. On July 31, 2020, Taro Pharmaceuticals, Inc. completed the purchase of Aquinox Pharmaceuticals (Canada) Inc. (“Aquinox”), a wholly-owned subsidiary of Neoleukin Therapeutics, Inc., including intellectual property rights to various early stage molecules. Pursuant to the agreement, Taro acquired all issued and outstanding shares of Aquinox for $ 8 million. On June 1, 2021, Taro Pharmaceuticals Inc. purchased 100 % of the issued and outstanding shares of Taro Pharmaceuticals U.S.A., Inc. for nominal value. The shares were purchased from Taro Pharmaceutical Industries Ltd. and The Taro Development Corporation (a company owned indirectly by Sun Pharmaceutical Industries Ltd.) as follows: Five ( 5 ) class A shares of common stock and one-hundred fifty ( 150 class B shares were acquired from Taro Pharmaceutical Industries Ltd., and five ( 5 ) class A shares were acquired from The Taro Development Corporation. On February 28, 2022 , the Company acquired 100 % ownership of Alchemee LLC ( “Alchemee”), pursuant to a Share and Asset Purchase Agreement. Taro paid an all-cash purchase price for Alchemee of approximately $ 99 million, which included all outstanding shares of Alchemee, product-related intellectual properties, intangible assets, and assembled workforce. This acquisition qualified as a business combination and the one month's financial results from the acquisition have been included in the Company's consolidated financial statements commencing February 28, 2022. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2: — SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”). a. Use of estimates: The consolidated financial statements are prepared in conformity with U.S. GAAP. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements, and assumptions. Management believes that the estimates, judgements and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgements and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Group’s most critical estimates are used in its determination of its sales incentives reserves, accounts receivable allowance, inventory reserves, income taxes, uncertain tax positions, fixed assets, intangible assets, derivative instruments, and contingencies. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. b. Financial statements in U.S. dollars (“USD”): A majority of the revenue of the Company and certain of its subsidiaries is generated in USD. In addition, a substantial portion of the costs of the Company and these subsidiaries is incurred in USD. Management believes that the USD is the primary currency of the economic environment in which the Company and these subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the USD, requiring re-measurement from the local currency into USD for each of these entities. All exchange gains and losses resulting from the re-measurement are reflected in the Consolidated Statements of Operations as financial income or expense, as appropriate. Prior to April 1, 2019, the functional currency of the Company’s Canadian subsidiary was the Canadian dollar (“CAD”). Accordingly, the financial statements of the Canadian subsidiary were translated into USD. All balance sheet accounts were translated using the exchange rates in effect at the balance sheet date. Amounts recorded in the Consolidated Statements of Operations were translated using the average exchange rate prevailing during the year. The resulting translation adjustments were reported as a component of shareholders’ equity under accumulated other comprehensive income. Effective as of the Company’s fiscal year beginning April 1, 2019, Taro Canada’s functional currency became the USD. FASB ASC Topic 830, “ Functional Currency Matters ,” requires a change in functional currency to be reported as of the date it is determined there has been a change, and it is generally accepted practice that the change is made at the start of the most recent period that approximates the date of the change. Management determined it would enact this change effective on April 1, 2019. While the change was based on a factual assessment, the determination of the date of the change required management’s judgement given the change in the primary economic and business environment, in which Taro Canada operates, have evolved over time. As part of management’s functional currency assessment, changes in economic facts and circumstances were considered. This included analysis of changes in: management of operations, process, and in the composition of cash and marketable securities balances. The Company has centralized different functions, including treasury and investment portfolio measurement, which resulted in a stronger focus on the USD currency for Taro Canada. Additionally, as budgeting has also been centralized for the Company, Taro Canada has implemented budgeting in USD, whereas this was previously performed in CAD. Taro Canada’s cash inflows consist primarily of USD cash balances and less of CAD, as also reflected in the budget. The transfer of significant intangible assets to Taro Canada, as a result of the winding down of TNA, has reduced the relevance of the foreign currency position on the balance sheet of Taro Canada. The Group decided to focus Taro Canada’s sales market as the U.S. market, with the majority of all sales to the U.S. denominated in USD. This was followed by centralizing budgets and facilitating effective netting and hedging activities. Assuming current business operating model stays constant, management believes that the USD cash balances will continue to increase, while CAD cash balances will continue to produce a net outflow. Management re-evaluated all indicators established in ASC 830-10-55-5 to determine the functional currency of Taro Canada. Such indicators include i) cash flow, ii) sales price, iii) sales market, iv) expense, v) financing and vi) intercompany transactions and arrangements. Management determined that the cash flow indicators and the sales market indicators were most relevant to Taro Canada operations and its primary economic environment. At the time of the assessment adopted on April 1, 2019, cash flows generated by Taro Canada that relate to its individual assets and liabilities now directly affect the Company’s cash flows and are readily available for remittance to the Company. The majority of cash flow from Taro Canada’s operations is denominated in USD, with the sales market for Taro Canada’s products now mostly in the U.S. Approximately 75 % of Taro Canada’s revenue is to the U.S. market, with over 80 % of Taro Canada’s plant production, in terms of units, being produced for the US market. Significant asset and liability line items on Taro Canada’s balance sheet are comprised almost solely (greater than 90 %) of USD denominated transactions. Furthermore, most of Taro Canada’s generated cash flows are now invested in USD based cash and cash equivalents or marketable securities. Since such investments are short-term, cash is readily available for remittance to other Taro entities. Thus, the USD is the primary currency from which Taro Canada generates and accumulates cash. When considering all relevant facts together, management concluded that the USD best reflects the currency of the primary economic environment in which Taro Canada currently operates. Therefore, USD is the functional currency as a result of the change in the most significant economic facts and circumstances from cash flow and sales market indicators, as well as intra-entity transactions and arrangements, which are material to Taro Canada. As a result, the Company adopted USD as the functional currency for Taro Canada effective April 1, 2019. The change was accounted for prospectively from the date of the change in accordance with FASB ASC Topic 830, “Foreign Currency Matters.” The translated balances of monetary and nonmonetary assets and liabilities recorded in Taro Canada’s financial statements as of the end of the prior reporting period became the new accounting basis for those assets and liabilities in the period of the change. To the extent the entity had monetary assets and liabilities denominated in the old functional currency, such balances created transactional gains and losses subsequent to the change in functional currency. The amount recorded in the currency translation adjustment account for prior periods was not reversed upon the change in functional currency. The exchange rate on the date of the change became the historical rate for subsequent re-measurement of nonmonetary assets and liabilities into the new functional currency. The following table summarizes the impact on both consolidated net income and other comprehensive income (loss) utilizing USD as the functional currency of Taro Canada as of March 31, 2020, compared to the related impact if the functional currency of Taro Canada would have remained CAD (excluding foreign exchange from transactions denominated in CAD recorded in the respective period): USD (in USD)* CAD (in USD)** (Unaudited Pro Forma) Financial (income) expense, net - attributed to foreign translation gain $ ( 14,838 ) $ ( 46,667 ) Other comprehensive loss - attributed to foreign currency translation adjustments $ ( 1 ) $ ( 92,959 ) *Based on consolidated amounts of the Group for the fiscal year ended March 31, 2020, which was the first fiscal year Taro Canada utilized USD as the functional currency. Includes Taro Canada amounts reported in USD with USD as functional currency. **Based on unaudited pro forma consolidated amounts of the Group for the fiscal year ended March 31, 2020. Includes Taro Canada unaudited pro forma amounts reported in USD with CAD as functional currency. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated in consolidation and non-controlling interest is included in shareholders’ equity. On June 1, 2021, the Company and The Taro Development Corporation each transferred its ownership of the shares of Taro U.S.A. to Taro Canada. Taro U.S.A. is now 100 % owned by Taro Canada, which remains 100 % owned by the Company. During the year ended March 31, 2022, the board of directors of Taro Canada approved two capital contributions in the amounts of $ 265.0 million and $ 107.6 million to Taro U.S.A. by reducing the Taro U.S.A.’s indebtedness to Taro Canada. d. Cash and cash equivalents: Cash equivalents are highly-liquid investments that are readily convertible into cash, typically with an original maturity of three months or less. Short-term bank deposits: Bank deposits with maturities of more than three months, but less than one year, are included in short-term deposits. Such deposits are stated at cost which approximates market value. The Company has short-term deposits on March 31, 2022 , of $ 47.6 million and $ 0 on March 31, 2021 . e. Business combination The Company allocates the purchase price of an acquired business to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. Any excess of the purchase price over the fair value of the net assets acquired is recorded as goodwill. The amounts of revenues and earnings of the acquired business since the acquisition date are included in the Consolidated Statements of Operations. Determining the fair value of assets acquired and liabilities assumed is judgmental in nature and can involve the use of significant estimates and assumptions. Fair value and useful life determinations are based on, among other factors, estimates of future expected cash flows, revenue growth rates, operating margins and appropriate discount rates used in computing present values. These estimates may materially impact the net income or loss in periods subsequent to acquisition through depreciation and amortization, and in certain instances through impairment charges, if assets become impaired in the future. Transaction costs associated with the business combination are expensed as incurred and reflected in operating expenses. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The Company includes the results of operations of the business that it has acquired in its consolidated results prospectively from the date of acquisition. f. Marketable securities: Marketable securities, consisting of both debt securities and equity securities, are comprised primarily of corporate bonds, government securities, U.S. Treasuries, certificates of deposit, municipal bonds, preferred stock, and commercial paper. The marketable debt securities were designated as available-for-sale (“AFS”). Accordingly, these securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income, a separate component of shareholders’ equity. The equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in consolidated statements of operation. Realized gains and losses on the sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest and dividends on securities are included in financial income, net. The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities results in the value of the investments being below the cost basis of such securities and when such decline is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in financial income, net in the Consolidated Statements of Operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The Company adopted ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326) ” on April 1, 2020 . In accordance with ASC 326-30, for an AFS debt security for which there is neither an intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance, rather than a write-down of the amortized cost basis. As a result, entities will be able to record reversals of credit losses in current period income as they occur. Additionally, the allowance is limited by the amount that the fair value is less than the amortized cost basis, considering that an entity can sell its investment at fair value to avoid realization of credit losses. An entity should not consider the length of time that the security has been in an unrealized loss position to avoid recording a credit loss. Further, in determining whether a credit loss exists, the historical and implied volatility and recoveries or additional declines in the fair value after the balance sheet date should no longer be considered. Changes in the allowance will be recorded in the period of the change as credit loss expense (or reversal of credit loss expense). As of March 31, 2022, the adoption of ASU 2016-13 did not have a material impact on our financial position and results of operations. During the years ended March 31, 2022, 2021, and 2020 , the Company did no t own or sell any marketable securities previously impaired. The Company adopted ASU No. 2016-01, “ Financial Instruments – Overall (Subtopic 825-10). ” The amended guidance focuses on the recognition and measurement of financial assets and liabilities. The adoption of ASU 2016-01 did not have a material impact on our financial position and results of operations. g. Allowance for doubtful accounts: The allowance for doubtful accounts is calculated primarily with respect to specific balances, for which, in the opinion of management, collection of such balances is doubtful. The allowance, in the opinion of management, is sufficient to cover probable uncollectible balances. The Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” on April 1, 2020 . The new guidance requires an entity to measure the allowance for expected credit losses by utilizing information including historical data and current economic conditions, plus the use of reasonable supportable forecasts. The adoption of ASU 2016-13 did not have a material impact on our financial position and results of operations. h. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items, short-dated inventory, excess inventory, or obsolescence. Changes in these provisions are charged to cost of sales. Cost is determined as follows: Raw and packaging materials – weighted-average cost basis. Finished goods and work in progress – weighted-average production costs including materials, labor and direct and indirect manufacturing expenses. Purchased products for commercial purposes – weighted-average cost basis. i. Taxes: (1) Deferred income taxes: Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is “more likely than not” that a portion of the deferred tax assets will not be realized. For the years ended March 31, 2022 and 2021, in accordance with the required updates in ASU No. 2015-17, all deferred tax liabilities and assets are classified as non-current. (2) Tax contingencies: The Company follows a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50 % likely to be realized upon ultimate settlement. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax positions under the provision for income taxes. A liability for unrecognized tax benefits was recorded in accordance with ASC 740 amounting to $ 34,578 and $ 26,921 as of March 31, 2022 and 2021, respectively. (3) Income taxes: Income taxes are accounted for in accordance with the use of the liability method, whereby deferred tax asset and liability account balances are determined for temporary differences between the financial reporting and tax basis of assets and liabilities, and for carryforward losses and credits. Deferred taxes are measured using tax rates and laws that will be in effect when the differences are expected to reverse. In certain cases management determined that it was more likely than not that the Company will not benefit from the deferred tax assets in subsidiaries, and a valuation allowance was provided against the deferred tax assets carried by such subsidiaries. In future years, if it is more likely than not that the subsidiary will be in a position to utilize its deferred tax asset, the valuation allowance for such assets will be modified. j. Property, plant and equipment: (1) Property, plant and equipment is stated at cost, net of accumulated depreciation. Payroll and other costs that are direct incremental costs necessary to bring an asset to the condition of its intended use incurred during the construction and validation period of property, plant, and equipment are capitalized to the cost of such assets. (2) Depreciation is calculated utilizing the straight-line method over the estimated useful lives of the assets, from the date the assets are ready for their intended use, at the following annual rates: % Building 2.5 - 10 Machinery and equipment 5 - 10 Motor vehicles 20 Furniture, fixtures, office equipment, computer equipment and software 6 - 33 Leasehold improvements are depreciated using the straight-line method over the shorter of their useful lives or the terms of the leases (generally five - ten years ). (3) Certain costs incurred for computer software developed or obtained for internal use is required to be capitalized. As of March 31, 2022 and 2021, the Group capitalized $ 20,298 and $ 17,332 of software costs, respectively. As of March 31, 2022, 2021 and 2020, capitalized internal costs, were $ 0 for all three years. (4) Software costs are amortized using the straight-line method over their estimated useful life (generally three to five years ). The Company capitalizes qualifying internally developed software development costs incurred during the application development stage, as long as it is probable the project will be completed, and the software will be used to perform the function intended, Capitalization of such costs ceases once the project is substantially complete and ready for its intended use. Costs related to maintenance of internal-use software are expensed in the period incurred. If capitalized projects are determined to no longer be in use, they are impaired, and the costs and accumulated depreciation are removed from the accounts. The resulting loss on impairment, if any, is included in the consolidated statements of operations in the period of impairment. k. Lease of land from the Israel Land Authority (“ILA”): The Company leases several parcels of land from the ILA. The lease period of the industrial parcels ends between 2018 and 2060 . The Company has the right to extend the lease agreement ended 2018 for an additional period of 49 years and is currently in the process of extending the lease agreement. The ILA lease agreements are standard agreements covering substantial portions of the land of Israel. The standard agreements call for a lease period of 49 years, with an option for one additional Lease Period (i.e., total of 98 years). A majority of the Company’s leases are in the beginning of the second 49 year period, and the remaining leases still in the first 49 year period have the option for the one additional lease period. The ownership of the land is not transferred at the end of the lease period, however, in certain conditions the lessee may purchase the land from the ILA. The expectation, based on practice and accumulated experience is that the renewal price would be substantially below fair market value. Since such leases do not qualify as a capital lease, they are being accounted for as operating leases. The prepaid lease amount is included in long-term receivables and other assets and amortized over the term of the lease. As of April 1, 2019, the Company commenced lease accounting in accordance with ASU 2016-02, “ Leases (Topic 842) .” Refer to Note 9 and Note 13 for additional details on lease accounting. l. Goodwill: The goodwill of the Company is not amortized, but rather is subject to an annual impairment test on March 31 (or more frequently if impairment indicators arise). The Group operates in one operating segment, comprising its only reporting unit. As of April 1, 2020 , the Company adopted ASU 2017-04 in which the goodwill impairment tests are now conducted in one step. In this step, if it is determined that the net book value of the reporting unit exceeds its fair value, impairment will be recorded for the difference. The Company determined the fair value using the market approach, which is based on the market capitalization by using the share price of the Company on the NYSE and an appropriate control premium. As of March 31, 2022 and 2021 , the market capitalization of the Company was higher than the net book value, therefore no impairment was recorded. m. Contingencies: The Company may be involved in various patent, product liability, consumer, commercial, or environmental claims, government investigations, and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, the Company records accruals for these types of contingencies to the extent that the Company concludes their occurrence is probable and that the related liabilities are estimable. The Company records anticipated recoveries under existing insurance contracts that are virtually certain of occurring and at the gross amount that is expected to be collected. n. Intangible assets and deferred charges and long-lived assets: Intangible assets and deferred charges: Acquired intangible assets and product rights to be held and used are amortized over their useful life of a weighted-average amortization period of between five to 20 years using a straight-line method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. Long-lived assets: The Group’s long-lived assets, excluding goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment exists when the carrying amount of the asset exceeds the aggregate future undiscounted cash flows expected to be generated by the asset. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the asset. During the years ended March 31, 2022 and 2021 , the Company did no t record any impairment charge. o. Comprehensive income: The comprehensive income statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relates to unrealized gains and losses on available for sale securities and foreign currency translation adjustments. p. Treasury shares: The Company repurchases its ordinary shares from time to time on the open market and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity. During the years ended March 31, 2022, 2021, and 2020, the Company repurchased 341,413 shares, 332,033 shares, and 280,719 shares, respectively. For the year ended March 31, 2022, the shares were repurchased in accordance with a Rule 10b5-1 program. On November 15, 2019, the Company commenced a modified “Dutch auction” tender offer to repurchase up to $ 225 million in value of its ordinary shares. In accordance with the terms and conditions of the tender offer, which expired on December 16, 2019 , the Company accepted for payment 280,719 ordinary shares at the final purchase price of $ 91.00 per share. When treasury stock is reissued, the Company charges the excess of the purchase cost, including related share-based compensation expenses, over their issuance price (loss) to retained earnings. The purchase cost is calculated based on the specific identification method. The Company did no t reissue treasury shares during the three years ended March 31, 2022, 2021 and 2020. In cases where the purchase cost is lower than the re-issuance price, the Company credits the difference to additional paid-in capital. q. Revenue recognition: The Company ships products to its customers only in response to, and to the extent of, the orders that customers submit to the Company. Depending on the terms of our customer arrangements, revenue is generally recognized when the product is received by the customer (“FOB Destination Point”) or at the time of shipment (“FOB Shipping Point”). When the Company recognizes and records revenue from the sale of its pharmaceutical products, the Company, in the same financial reporting period, records an estimate of various future deductions related to the sale. This has the effect of reducing the amount of reported product sales. These deductions include the Company’s estimates, which may require significant judgement of chargebacks, product returns, rebates, and other sales deductions. Chargebacks result from pricing arrangements the Company has with end-user customers establishing contract prices which are lower than the wholesalers’ acquisition costs or invoice prices. When these customers buy the Company’s products from their wholesaler of choice, the wholesaler issues a credit memo (chargeback) to the Company for the difference between the invoice price and the end-user contract price. Chargeback reserves are estimated using current wholesaler inventory data and historical data. Product returns result from agreements allowing the Company’s customers to return unsold inventory that is expired or close to expiration and such returns are deducted from revenue. Product return reserves are calculated using the average lag period between sales and product expiry, historical product returns experience, and specific return exposures to estimate the potential obligation for returns of inventory in the distribution channel. Rebates result from contractual agreements with the Company’s customers and are earned based on the Company’s direct sales to customers or the Company’s customers’ sales to third parties. Rebate reserves from the Company’s direct sales to customers and the Company’s customers’ sales to third parties are estimated using historical and contractual data. The Company generally offers discounts to its customers for payments within a certain period of time. Cash discount reserves are calculated by multiplying the specified discount percentage by the outstanding receivable at the end of each period. Reserves for returns, Medicaid and indirect rebates are included in current liabilities. All other sales deductions allowances are recorded as accounts receivable reserves. The reserve for returns is included in current liabilities as substantially all of these returns will not be realized until after the year-end accounts receivable balances are settled. Medicaid and indirect rebates are included in current liabilities because the Company does not have direct customer relationships with any of the payees. The Company offers incentives to certain resellers and retailers through various marketing programs where the Company agrees to reimburse them for advertising costs incurred to include the Company’s products. The Company accounts for these in accordance with FASB ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ,” as reductions of revenue unless the customer receives an identifiable benefit in exchange for the consideration that is sufficiently separable from the customer’s purchase of the products and the fair value of the benefits can be reasonably estimated. r. Research and development: Research and development expenses are charged to expense as incurred. Payments made for research and development services prior to the services being rendered are recorded as prepaid expenses on our Consolidated Balance Sheet and expensed as provided. s. Royalty-bearing grants: Royalty-bearing grants from the government of Israel through the Israeli National Authority for Technological Innovation (the “IIA”) (formerly operating as Office of the Chief Scientist of the Ministry of Economy of the State of Israel) for funding approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the related costs incurred. The Company did no t earn any grants during the years ended March 31, 2022, 2021 and 2020 . t. Advertising expenses: The Group expenses advertising costs as incurred. Product samples are recorded within prepaid expenses on the Consolidated Balance Sheet and recorded within advertising expenses when provided to potential customers. Advertising expenses were $ 8,280 , $ 5,681 , and $ 4,902 for the years ended March 31, 2022, 2021 and 2020 , respectively. u. Sales and other taxes collected and remitted to governmental authorities: The Company collects various taxes from customers and remits them to governmental authorities. These taxes are recorded on a net basis and therefore do not impact the Statement of Operations. v. Basic and diluted net (loss) income per ordinary share attributable to Taro: Basic net (loss) income per ordinary share is calculated based on the weighted-average number of ordinary shares outstanding during each year. Diluted net (loss) income per ordinary share is calculated based on the weighted-average number of ordinary shares outstanding during each year, plus potential dilutive ordinary shares considered outstanding during the year (except where anti-dilutive). w. Freight and distribution costs: The Company |
Marketable Securities
Marketable Securities | 12 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | NOTE 3: — MARKETABLE SECURITIES a. Marketable securities: March 31, 2022 2021 Short-term marketable securities $ 522,028 $ 418,480 Long-term marketable securities 435,189 557,209 $ 957,217 $ 975,689 b. The following is a summary of both short-term and long-term marketable securities by type: March 31, 2022 2021 Amortized Cost Gross Unrealized Gain (Loss) through Other Comprehensive Income Gross Unrealized Gain (Loss) through Profit & Loss Market Value Amortized Cost Gross Unrealized Gain (Loss) through Other Comprehensive Income Gross Unrealized Gain (Loss) through Profit & Loss Market Value Marketable securities: Corporate bonds $ 743,624 $ ( 11,840 ) $ — $ 731,784 $ 679,315 $ 4,823 $ — $ 684,138 Government securities 106,235 ( 531 ) — 105,703 146,057 249 — 146,306 Commercial paper 22,678 ( 121 ) — 22,557 47,934 4 — 47,938 Preferred stock - debt instrument 2,685 ( 235 ) — 2,449 2,990 44 — 3,033 Preferred stock - equity instrument 11,649 — ( 1,616 ) 10,034 10,475 — 77 10,553 Certificates of deposit 46,296 ( 144 ) — 46,152 42,897 27 — 42,924 Municipal bonds 26,683 ( 276 ) — 26,408 23,479 82 — 23,562 Other securities 12,261 ( 132 ) — 12,129 17,115 120 — 17,235 Total marketable securities $ 972,111 $ ( 13,279 ) $ ( 1,616 ) $ 957,217 $ 970,262 $ 5,350 $ 77 $ 975,689 On March 31, 2022 and 2021, the gross unrealized gain (loss) excludes $ 149 and $ 423 of other comprehensive income relating to marketable securities for foreign exchange gain, respectively. As of March 31, 2022 , no other than temporary impairment charges were recorded. c. The estimated fair value of marketable securities as of March 31, 2022 and 2021 , by contractual maturity, are as follows: March 31, 2022 2021 Amortized Market Amortized Market Cost Value Cost Value Available-for-sale marketable securities: Matures in less than five years $ 953,150 $ 940,212 $ 956,797 $ 962,103 Matures in more than five years 7,312 6,971 2,990 3,033 960,462 947,183 959,787 965,136 Investment at fair value through Profit & Loss 11,649 10,034 10,475 10,553 $ 972,111 $ 957,217 $ 970,262 $ 975,689 |
Accounts Receivable and Other
Accounts Receivable and Other | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable and Other | NOTE 4: — ACCOUNTS RECEIVABLE AND OTHER a. Trade, net: The following table summarizes the impact of accounts receivable reserves and allowance for doubtful accounts on the gross trade accounts receivable balances at each balance sheet date: March 31, 2022 2021 Trade accounts receivable, gross $ 437,557 $ 409,198 Reserves for sales deductions: Chargebacks ( 111,308 ) ( 119,090 ) Other sales deductions ( 52,343 ) ( 53,058 ) Customer rebates ( 10,708 ) ( 22,498 ) Allowance for doubtful accounts ( 16,226 ) ( 1,013 ) Trade accounts receivable, net $ 246,972 $ 213,539 a. Other receivables and prepaid expenses: March 31, 2022 2021 Government authorities $ 27,752 $ 26,112 Prepaid expenses 13,229 12,891 Due from related parties 14,371 9,835 Advances to suppliers 991 1,134 Interest receivable 311 143 Other 3,073 3,232 $ 59,727 $ 53,347 |
Sales Incentives
Sales Incentives | 12 Months Ended |
Mar. 31, 2022 | |
Text Block [Abstract] | |
Sales Incentives | NOTE 5: — SALES INCENTIVES When the Company recognizes and records revenue from the sale of its pharmaceutical products, it records an estimate in the same financial reporting period for product returns, chargebacks, rebates, and other sales deductions, which are reflected as reductions of the related gross revenue. The Company regularly monitors customer inventory information at its three largest wholesale customers to assess whether any excess product inventory levels may exist. The Company reviews this information together with historical product and customer experience, third-party prescription data, industry and regulatory changes, and other relevant information and revises its estimates as necessary. The Company’s estimates of inventory in the distribution channel are based on inventory information reported to it by its major wholesale customers, historical shipment, and return information from its accounting records, and third-party data on prescriptions filled. The Company’s estimates are subject to inherent limitations pertaining to reliance on third-party information. The Company considers all information available subsequent to the balance sheet date, but before the issuance of the financial statements, that provides additional evidence with respect to conditions existing at the balance sheet date and adjusts the reserves accordingly. Product returns: Consistent with industry practice, the Company generally offers its customers the right to return inventory within three to six months prior to product expiration and up to 12 months thereafter (the “return period”). Product returns are identified by their manufacturing lot number. Because the Company manufactures in bulk, lot sizes are generally large and, therefore, shipments of a particular lot may occur over a one - to six-month period. As a result, although the Company cannot associate a product return with the actual shipment in which such lot was included, the Company can reasonably estimate the period (in months) over which the entire lot was shipped and sold. The Company uses this information to estimate the average time period between lot shipment (and sale) and return for each product, which the Company refers to as the “return lag.” The shelf life of most of the Company’s products ranges between 18 - 36 months . Because returns of expired products are heavily concentrated during the return period, and given the Company’s historical data, it is able to reasonably estimate return lags for each of its products. These return lags are periodically reviewed and updated, as necessary, to reflect the Company’s best knowledge of facts and circumstances. Using sales and return data (including return lags), the Company determines a return rate to estimate its returns reserve. The Company supplements this calculation with additional information including customer and product specific channel inventory levels, competitive developments, external market factors, the Company’s planned introductions of similar new products, and other qualitative factors in evaluating the reasonableness of the returns reserve. The Company continuously monitors factors that could affect its estimates and revises the reserves as necessary. The Company’s estimates of expected future returns are subject to change based on unforeseen events and uncertainties. The Company monitors the levels of inventory in its distribution channels to assess the adequacy of the product returns reserve and to identify potential excess inventory on hand that could have an impact on its revenue recognition. The Company does not ship products to its wholesalers when it appears they have an excess of inventory on hand, based on demand and other relevant factors, for that particular product. Chargebacks: The Company has arrangements with certain customers that allow them to buy its products directly from its wholesalers at specific prices. Typically, these price arrangements are lower than the wholesalers’ acquisition costs or invoice prices. In exchange for servicing these third-party contracts, the Company’s wholesalers can submit a “chargeback” claim to the Company for the difference between the price sold to the third party and the price at which they purchased the product from us. The Company generally pays chargebacks on generic products, whereas branded proprietary products are typically not eligible for chargeback claims. The Company considers many factors in establishing its chargeback reserves including inventory information from its largest wholesale customers and the completeness of their reports, estimates of Taro inventory held by smaller wholesalers and distributors, processing time lags, contract and non-contract sales trends, average historical contract pricing, actual price changes, actual chargeback claims received from the wholesalers, Taro sales to the wholesalers, and other relevant factors. The Company’s chargeback provision and related reserve varies with changes in product mix, changes in pricing, and changes in estimated wholesaler inventory. The Company reviews the methodology utilized in estimating the reserve for chargebacks in connection with analyzing its product returns reserve each quarter and makes revisions as considered necessary to reasonably estimate its potential future obligation. Rebates and other deductions: The Company offers its customers various rebates and other deductions based primarily on their volume of purchases of its products. Chain wholesaler rebates are rebates that certain chain customers claim for the difference in price between what the chain customer paid a wholesaler for a product purchase and what the chain customer would have paid if such customer had purchased the same product directly from the Company. Cash discounts, which are offered to the Company’s customers, are generally 2 % of the gross sales price, and provide the Company’s customers an incentive for paying within a specified time period after receipt of invoice. Medicaid rebates are earned by states based on the amount of the Company’s products dispensed under the Medicaid plan. Billbacks are special promotions or discounts provided over a specific time period to a defined customer base and for a defined product group. Distribution allowances are a fixed percentage of gross purchases for inventory shipped to a national distribution facility that the Company pays to its top wholesalers on a monthly basis. Administration fees are paid to certain wholesalers, buying groups, and other customers for stocking the Company’s products and managing contracts and servicing other customers. Shelf-stock adjustments, which are customary in the generic pharmaceutical industry, are based on customers’ existing levels of inventory and the decrease in the market price of the related product. When market prices for the Company’s products decline, the Company may, depending on its contractual arrangements, elect to provide shelf-stock adjustments and thereby allow its customers with existing inventories to compete at the lower product price. The Company uses these shelf-stock adjustments to support its market position and to promote customer loyalty. The Company establishes reserves for rebates and other various sales deductions based on contractual terms and customer purchasing activity, tracking and analysis of rebate programs, processing time lags, the level of inventory in the distribution channel and other relevant information. Based on the Company’s historical experience, substantially all claims for rebates and other sales deductions are received within 24 months. As discussed above, the Company believes it has the experience and information necessary to reasonably estimate the amounts of reserves for its sales incentives programs. Several of the assumptions used by the Company for certain estimates are based on information received from third parties, such as wholesale customer inventory levels, market data, and other factors beyond the Company’s control. The most critical estimates in determining these reserves, and the ones therefore that would have the largest impact if these estimates were not accurate, are related to contract sales volumes, average contract price, customer inventories, and return volumes. The Company regularly reviews the information related to these estimates and adjusts its reserves accordingly, if and when actual experience differs from previous estimates. Use of estimates in reserves: The Company believes that its reserves, allowances, and accruals for items that are deducted from gross revenue are reasonable and appropriate based on current facts and circumstances. Changes in actual experience or changes in other qualitative factors could cause the Company’s allowances and accruals to fluctuate, particularly with newly launched or acquired products. The Company regularly reviews the rates and amounts in its reserve estimates. If future estimated rates and amounts are significantly greater than those reflected in the Company’s recorded reserves, the resulting adjustments to those reserves would decrease the Company’s reported net revenue; conversely, if actual product returns, rebates, and chargebacks are significantly less than those reflected in the Company’s recorded reserves, the resulting adjustments to those reserves would increase the Company’s reported net revenue. If the Company were to change its assumptions and estimates, its reserves would change, impacting the net revenue that the Company reports. The Company regularly reviews the information related to these estimates and adjusts its reserves accordingly, if and when actual experience differs from previous estimates. The following tables summarize the activities for sales deductions and product returns for the years ended March 31, 2022, 2021, and 2020: For the year ended March 31, 2022 Beginning Acquired Provision recorded for current period sales (1) Credits Ending Accounts Receivable Reserves Chargebacks $ ( 119,090 ) $ — $ ( 1,182,744 ) $ 1,190,526 $ ( 111,308 ) Rebates and Other ( 76,569 ) ( 5,165 ) ( 165,174 ) 167,692 ( 79,216 ) Total $ ( 195,659 ) $ ( 5,165 ) $ ( 1,347,918 ) $ 1,358,218 $ ( 190,524 ) Current Liabilities Returns $ ( 52,236 ) $ ( 493 ) $ ( 52,282 ) $ 48,978 $ ( 56,033 ) Other (2) ( 18,560 ) ( 354 ) ( 52,279 ) 50,474 ( 20,719 ) Total $ ( 70,796 ) $ ( 847 ) $ ( 104,561 ) $ 99,452 $ ( 76,752 ) For the year ended March 31, 2021 Beginning Acquired Provision recorded for current period sales (1) Credits Ending Accounts Receivable Reserves Chargebacks $ ( 104,552 ) $ — $ ( 1,173,810 ) $ 1,159,272 $ ( 119,090 ) Rebates and Other ( 70,630 ) — ( 180,079 ) 174,140 ( 76,569 ) Total $ ( 175,182 ) $ — $ ( 1,353,889 ) $ 1,333,412 $ ( 195,659 ) Current Liabilities Returns $ ( 61,406 ) $ — $ ( 37,011 ) $ 46,181 $ ( 52,236 ) Other (2) ( 41,562 ) — ( 26,036 ) 49,038 ( 18,560 ) Total $ ( 102,968 ) $ — $ ( 63,047 ) $ 95,219 $ ( 70,796 ) For the year ended March 31, 2020 Beginning Acquired Provision recorded for current period sales (1) Credits Ending Accounts Receivable Reserves Chargebacks $ ( 109,763 ) $ — $ ( 1,104,946 ) $ 1,110,157 $ ( 104,552 ) Rebates and Other ( 113,657 ) — ( 305,098 ) 348,125 ( 70,630 ) Total $ ( 223,420 ) $ — $ ( 1,410,044 ) $ 1,458,282 $ ( 175,182 ) Current Liabilities Returns $ ( 63,818 ) $ — $ ( 37,258 ) $ 39,670 $ ( 61,406 ) Other (2) ( 33,497 ) — ( 77,537 ) 69,472 ( 41,562 ) Total $ ( 97,315 ) $ — $ ( 114,795 ) $ 109,142 $ ( 102,968 ) (1) Includes immaterial amounts of reversals of provisions recorded for prior years’ sales. (2) Includes Medicaid, indirect rebates, and amounts due to customers. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6: — INVENTORIES March 31, 2022 2021 Finished goods $ 105,873 $ 85,956 Raw and packaging materials 62,466 60,299 Work in progress 36,367 28,185 Other 5,733 5,852 $ 210,439 $ 180,292 As of March 31, 2022 and 2021, reserves recorded against inventories for slow-moving, short-dated, excess, and obsolete inventory totaled $ 49,889 and $ 32,423 , respectively. As of March 31, 2022 and 2021 , there were no pledges of inventory. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 7: — PROPERTY, PLANT AND EQUIPMENT a. Composition of assets grouped by major classifications are as follows: March 31, 2022 2021 Cost: Land $ 7,628 $ 7,628 Buildings 192,922 190,617 Leasehold improvements 5,211 3,552 Machinery and equipment 225,626 219,210 Computer software and equipment 64,164 46,087 Motor vehicles 80 80 Furniture, fixtures and office equipment 15,051 15,542 510,682 482,716 Accumulated depreciation and impairment charges: Buildings $ 92,378 $ 85,139 Leasehold improvements 3,171 2,084 Machinery and equipment 163,266 153,628 Computer software and equipment 40,474 25,445 Motor vehicles 80 80 Furniture, fixtures and office equipment 11,621 10,832 310,990 277,208 Depreciated cost $ 199,692 $ 205,508 b. Depreciation expenses were $ 24,077 , $ 21,849 , and $ 19,161 for the years ended March 31, 2022, 2021, and 2020, respectively. c. Cost of property, plant, and equipment includes capitalized interest expense, capitalized direct incremental costs (such as payroll and related expenses), and other internal costs incurred in order to bring the assets to their intended use in the amount of $ 15,333 as of March 31, 2022 and 2021 . There were no additional capitalized interest and other costs as of March 31, 2022 and 2021. d. Cost of computer equipment includes capitalized development costs of computer software developed for internal use in the amount of $ 20,298 and $ 17,332 as of March 31, 2022 and 2021, respectively. e. Asset disposals were $ 906 and $ 124 for the years ended March 31, 2022 and 2021 , respectively, mainly relating to the write-off of fully depreciated computer equipment, software, and production equipment. |
Intangible Assets and Deferred
Intangible Assets and Deferred Costs | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Deferred Costs | NOTE 8: — INTANGIBLE ASSETS AND DEFERRED COSTS a. Composition: March 31, 2022 2021 Cost: Product and distribution rights $ 127,766 $ 85,359 127,766 85,359 Accumulated amortization: Product and distribution rights 80,432 78,593 80,432 78,593 $ 47,334 $ 6,766 b. Amortization expenses related to product and distribution rights were $ 1,839 , $ 1,831 , and $ 2,222 for the years ended March 31, 2022, 2021 and 2020, respectively. c. As of March 31, 2022, the estimated amortization expense of product and distribution rights for 2023 to 2027 is as follows: 2023— $ 7,016 ; 2024— $ 5,627 ; 2025— $ 5,629 ; 2026— $ 5,628 ; 2027— $ 5,620 . d. The weighted-average amortization period for product rights is approximately 8 years. e. During the years ended March 31, 2022 and 2021 , the Company did no t record any impairment charge related to intangible assets. |
Other Assets
Other Assets | 12 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 9: — OTHER ASSETS March 31, 2022 2021 Prepayment of land leased from ILA (1) $ 12,790 $ 13,020 Right-of-use (ROU) assets (2) 5,422 2,729 Intangible assets and deferred costs, net (3) 47,334 6,766 Severance pay fund (4) 1,190 1,211 Other 157 397 $ 66,893 $ 24,123 (1) The ILA lease agreements are standard agreements covering substantial portions of the land of Israel. The standard agreements call for a lease period of 49 years, with an option for one additional lease period (i.e., total of 98 years). A majority of the Company’s leases are in the beginning of the second 49 year period, and the remaining leases still in the first 49 year period have the option for the one additional lease period. This amount was prepaid. See Note 2.j. (2) As of April 1, 2019, the Company commenced lease accounting in accordance with ASU 2016-02, “ Leases (Topic 842) .” The Company currently has leased offices, warehouse space, and equipment under operating leases for periods through 2026 . See Note 13. (3) See Note 8. (4) Under Israeli law, the Company is required to make severance or pension payments to dismissed employees and to employees terminating employment under certain other circumstances. Deposits are made with a pension fund or other insurance plans to secure pension and severance rights for the employees in Israel. These amounts represent the balance of the deposits in those funds (including profits) that will be used to cover the Company’s severance obligations. See Note 12.b. Taro U.S.A. maintains defined contribution retirement savings plans covering substantially all of their employees. Taro Canada maintains a Registered Retirement Savings Plan (“RRSP”). Under the plans, contributions are based on specific percentages of pay and are subject to statutory limits. The Company’s matching contribution to the plans was $ 1,273 , $ 1,369 , and $ 1,133 for the years ended March 31, 2022, 2021, and 2020, respectively. Years ended March 31, 2022 2021 2020 Pension, retirement savings and severance expenses $ 6,732 $ 8,064 $ 6,654 |
Derivative Instruments and Fina
Derivative Instruments and Financial Risk Management | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Financial Risk Management | NOTE 10: — DERIVATIVE INSTRUMENTS AND FINANCIAL RISK MANAGEMENT The Company’s operations are exposed to market risks from changes in interest rates and currency exchange rates. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through derivative instruments. Currency exchange rates: The Company manages its exposure to debt obligations denominated in currencies other than its functional currency by opportunistically using cross-currency hedges to convert its foreign currency payments into its functional currency. The following table sets forth the annual rate of inflation, the devaluation (appreciation) rate of the New Israeli Shekel (“NIS”) and the CAD against the USD and the exchange rates between the USD and each of the NIS and the CAD at the end of the year indicated: Rate of Devaluation (Appreciation) Rate of Exchange of Rate of Inflation Against USD USD Period ended Israel (1) Canada (2) Israel (1) Canada (2) Israel (1) Canada (2) 3/31/2022 3.48 % 6.66 % ( 4.50 %) ( 0.79 %) 3.18 1.25 3/31/2021 0.20 % 2.20 % ( 6.72 %) ( 10.64 %) 3.33 1.26 (1) Per Bank of Israel. (2) Per J.P. Morgan Chase. The Company enters into separate forward contracts to purchase the NIS and the CAD on a monthly basis at agreed upon spot rates to hedge the variability of cash flows in USD due to changes in the respective exchange rates. On March 31, 2022, the forward contracts to purchase the NIS are for a total amount of $ 55,250 , at a weighted-average forward rate of 3.17 NIS per USD, which are settled in seventeen (17) monthly settlements of $ 3,750 for ten (10) months, $ 3,250 for one (1) months, and $ 2,500 for five (5) months. The Company recorded a net gain of $ 93 , $ 190 , and $ 178 for the years ended March 31, 2022, 2021, and 2020, respectively, for the contracts to purchase the NIS. The forward contracts to purchase the CAD are for a total amount of $ 20,842 , at a weighted-average forward rate of CAD 1.25 per USD, which are settled in ten (10) monthly installments of approximately $ 2,105 for ten (10) months. The Company recorded a net gain (loss) of $ 0 , $ 267 , and ($ 629 ) , for the years ended March 31, 2022, 2021, and 2020, respectively, for the contracts to purchase the CAD. There is no collateral for these hedges. On March 31, 2022, the Company had derivative instruments designated as hedging instruments, which have been accounted for in accordance with ASU No. 2017-12, “Derivatives and Hedging (Topic 815) .” |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 11: — FAIR VALUE MEASUREMENTS FASB ASC Topic 820 defines fair value as the price that would be received for an asset or paid to transfer a liability, from a selling party’s perspective, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets and liabilities. Active market means a market in which transactions for assets or liabilities occur with “sufficient frequency” and volume to provide pricing information on an ongoing unadjusted basis. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 assets primarily include derivative instruments. The Level 2 asset values are determined using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider counterparty credit risk in the assessment of fair value. Level 3: Significant unobservable inputs that are not corroborated by market data. The Company has no Level 3 assets or liabilities. The fair value of the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2022 and 2021 were as follows: March 31, 2022 March 31, 2021 Quoted of Significant Other Quoted of Significant Other (Level 1) (Level 2) (Level 1) (Level 2) Assets Short-term marketable securities * $ 522,028 $ — $ 418,480 $ — Long-term marketable securities * 422,706 — 543,623 — Long-term debt instruments * 2,449 — 3,033 — Long-term equity instruments * 10,034 — 10,553 — Forward contracts — 808 — 680 $ 957,217 $ 808 $ 975,689 $ 680 Liabilities Forward contracts $ — $ ( 281 ) $ — $ ( 591 ) *Refer to Note 3 for additional details on marketable securities. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | NOTE 12: — OTHER LIABILITIES a. Other current liabilities: March 31, 2022 2021 Settlements and loss contingencies (1) $ 202,036 $ 457,674 Returns reserve 56,033 52,236 Accrued expenses 25,181 20,557 Employees and payroll accruals 23,863 20,179 Accrued income taxes 19,695 18,114 Medicaid and indirect rebates 19,347 16,796 Deferred revenue 5,788 7,583 Marketable securities 3,869 10,266 Lease liability 2,204 1,689 Royalties 1,819 2,911 Suppliers of property, plant and equipment 1,452 2,951 Due to customers 1,372 1,764 Legal and audit fees 1,045 1,197 Derivative instruments 281 299 Other ( 99 ) 919 $ 363,886 $ 615,135 (1) See Note 13. b. Other long-term liabilities: March 31, 2022 2021 Deferred credits $ 22,643 $ 29,227 Long-term incentive plan 3,786 — Accrued severance pay 1,319 1,315 Deferred revenue 919 1,095 Other 4,132 1,571 $ 32,799 $ 33,208 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 13: — COMMITMENTS AND CONTINGENT LIABILITIES a. Companies of the Group have leased offices, warehouse space, and equipment under operating leases for periods through 2026. The minimum annual rental payments, under non-cancelable lease agreements, are as follows: March 31, 2022 3/31/2023 $ 2,238 3/31/2024 1,578 3/31/2025 1,289 3/31/2026 1,057 $ 6,162 Total rent expenses were $ 1,684 , $ 1,951 , and $ 1,875 for the years ended March 31, 2022, 2021, and 2020, respectively. Effective April 1, 2019 , the Company adopted ASU 2016-02, using the modified retrospective method. The adoption of ASU 2016-02 does not have a material impact on our financial position or results of operations. b. Royalty commitments: The Company is committed to pay royalties at the rate of 3.0 % to 3.5 % to the government of Israel through the IIA on proceeds from the sale of products in which the government participates in the research and development by way of grants. The obligation to pay these royalties is contingent on actual sales of the products and, in the absence of such sales, no payment is required. The commitment is on a product by product basis, in an amount not exceeding the total of the grants received by the Company, including interest accrued thereon, and is linked to the USD. Grants are subject to interest at a rate of LIBOR (cost of borrowing funds in USD). As of March 31, 2022 and 2021, the aggregate contingent liability to the IIA was $ 14,072 and $ 13,805 , respectively. Royalty payments to the IIA were $ 0 , $ 0 , and $ 0 for the years ended March 31, 2022, 2021, and 2020, respectively. c. Legal proceedings: From time to time, we are a party to routine litigation incidental to our business, including patent litigation resulting from our use of the patent challenge procedures set forth in the Hatch Waxman Act, product liability litigations, and employment litigations, none of which, individually or in the aggregate, are expected to have a material effect on our financial position or profitability. Other litigation, as disclosed herein, may have a material adverse effect on our financial position or profitability. The Company records a provision in its financial statements to the extent that it concludes that a contingent liability is probable, and the amount thereof is estimable. Because litigation outcomes and contingencies are unpredictable, and because excessive verdicts can occur, these assessments involve complex judgments about future events and can rely heavily on estimates and assumptions. 1. Legal actions commenced by the Company: The Company has completed its tax assessments with the Israeli tax authorities for years through March 31, 2016. On March 28, 2022, the ITA issued a tax assessment with respect to March 31, 2017, and the total tax liability arising from the assessment as of the date of its issuance amounts to NIS 38.5 million ($ 12.3 million), including interest and linkage to the Israeli Customer Price Index. The Company filed its tax objection to the ITA on May 26, 2022. The ITA has one year, until May 25, 2023 to ask additional questions and either affirm, modify or withdraw their assessment. With respect to the years ending March 31, 2018 and through March 31, 2020 , the Company is under examination by the ITA. The Company may be also subject to examination by the Israeli tax authorities for the years ending March 31, 2021 and onward. The Company believes that its tax provision is adequate to satisfy any assessments resulting from examination of these years. 2. Generic drug industry pricing investigations and related litigation: Taro U.S.A. reached a global resolution with the DOJ Antitrust Division and Civil Division in connection with DOJ’s multi-year investigation into the U.S. generic pharmaceutical industry. Under a Deferred Prosecution Agreement (the “Agreement”) entered into with the Antitrust Division on July 23, 2020, the DOJ filed an information relating to conduct allegedly occurring between 2013 and 2015. If Taro U.S.A. adheres to the terms of the Agreement, including paying a penalty of $ 205.7 million, the DOJ will dismiss the information after three years. Taro U.S.A. has paid this amount in full to the Antitrust Division. Taro U.S.A. also reached an agreement with the DOJ Civil Division on September 30, 2021, pursuant to which Taro U.S.A. voluntarily entered into a five-year corporate integrity agreement with the U.S. Department of Health and Human Services’ Office of Inspector General, and agreed to pay $ 213.3 million to resolve all claims related to federal healthcare programs. Taro U.S.A. has paid this amount in full to the Civil Division. The Company, its subsidiaries and, with respect to a complaint brought by U.S. State Attorneys General (“AG”) and a complaint brought by putative classes of indirect reseller plaintiffs (“IRPs”), a former member of Taro U.S.A.’s commercial team have been named as defendants in numerous putative class action lawsuits and additional lawsuits brought by and/or on behalf of purchasers and payors of several generic pharmaceutical products in the U.S. and Canada. The lawsuits allege that the Company, its subsidiaries, and the concerned individual in the AG and IRP complaints, have conspired with competitors to fix prices, rig bids, or allocate customers with respect to certain products, and also allege an industry-wide conspiracy as to nearly all generic pharmaceutical products. Each of the cases that were filed in U.S. federal court has been transferred to the U.S. District Court for the Eastern District of Pennsylvania for coordinated proceedings under the caption In re: Generic Drug Pricing Antitrust Litigation, MDL No. 2724. The Court had sequenced the lawsuits into separate groups for purposes of briefing motions to dismiss. Defendants filed motions to dismiss complaints in the first group. On October 16, 2018, the Court denied the motions with respect to the federal law claims. On February 15, 2019, the Court granted in part and denied in part the motions with respect to the state law claims. Certain cases are proceeding in discovery. The Court designated certain complaints naming Taro U.S.A. as “bellwether” cases to begin the sequencing of proceedings, and in December 2021, the Court issued an order setting certain bellwether schedules across 2022 and 2023, including related to discovery and motions practice. On November 4, 2021, a settlement was reached with the putative Direct Purchaser Plaintiff class (“DPPs” ), a putative class generally comprised of wholesalers and distributors that purchased generic drug products from manufacturers, subject to final Court approval, pursuant to which Taro U.S.A. will pay a maximum of $ 67.6 million, subject to a reduction of up to $ 8 million depending on the volume of certain class members that may opt-out of the settlement. Further, the Company has made a provision of $ 200 million (which includes the $ 67.6 million settlement amount) for ongoing multi-jurisdiction civil antitrust matters. An amount of $ 140 million was accounted for in the year ended March 31, 2021; and an additional provision of $ 60 million was recognized in the quarter ended June 30, 2021; however, the ultimate outcome of these matters cannot be predicted with certainty. The Company and two of its former officers are named as defendants in a putative shareholder class action entitled Speakes v. Taro Pharmaceutical Industries, Ltd., filed October 25, 2016, which is now pending in the U.S. District Court for the Southern District of New York and asserts claims under Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) against all defendants and Section 20(a) of the Exchange Act against the individual defendants. It generally alleges that the defendants made material misstatements and omissions in connection with an alleged conspiracy to fix drug prices. On September 24, 2018, the Court granted in part and denied in part the Company’s motion to dismiss. The case is proceeding with limited discovery. On June 22, 2020, a motion seeking documents before filing a shareholder derivative action was filed by a single shareholder against the Company and Taro U.S.A. in the Haifa District Court related to alleged U.S. antitrust violations. On September 22, 2020, a subsequent motion seeking documents was filed by a single shareholder against the Company related to alleged misreporting to U.S. Medicaid and three prior state settlements. Both motions were consolidated on February 16, 2021, and remain pending before the Haifa District Court. The Company has filed a motion to stay proceedings pending resolution of the related U.S. litigation. 3. Other matters: In June 2020, the Company was named as a defendant in a putative opioids-related class action pending in Israel, in which the claimant alleges that the Company did not provide sufficient disclosure regarding the risks associated with opioid use in alleged violation of the Israeli Consumer Protection Act. The Company filed its defense to the application for class action approval on May 2, 2021, and a preliminary hearing to address the issue may be scheduled for late 2022. In June 2020, the Company and Taro U.S.A. were named as defendants in a complaint filed in the Zantac/Ranitidine Multi-District Litigation (“MDL”) consolidated in the U.S. District Court for the Southern District of Florida. The lawsuits name over 100 defendants, including brand manufacturers, generic manufacturers, repackagers, distributors, and retailers, involving allegations of injury caused by nitrosamine impurities. On September 4, 2020, and October 3, 2020, the MDL Court dismissed the Company and Taro U.S.A., respectively, from the master complaints without prejudice. Despite having been voluntarily dismissed from the master complaints, the Company and Taro U.S.A. were named in approximately 20 short form complaints filed by plaintiffs represented by attorneys unaffiliated with MDL leadership counsel. On July 8, 2021, the MDL court granted the generic Defendants’ motion to dismiss, the effect of which was to dismiss the Company and Taro U.S.A. with prejudice. That decision, which involves the issue of federal preemption, is up on appeal. Neither the Company nor Taro U.S.A. have been named as defendants in any of the pending state court cases involving ranitidine/Zantac of which we are aware. In July 2019, the Company received a motion to approve a class action against 30 companies located in Haifa Bay, Israel, including the Company. The claimant, a civil association in Haifa Bay, claims that the industrial activity of the 30 companies allegedly caused higher percentages of lung cancer among Haifa Bay residents compared to the average in Israel. At this stage, the claimant seeks to receive district court approval for the motion to approve a class action. The 30 companies, including the Company, filed their defense to the class action on January 9, 2022. d. Other: Payments to pharmacies for Medicaid-covered outpatient prescription drugs are set by the states. For many multiple source drugs for which FDA has rated at least three drugs as therapeutically equivalent, the amount that states may reimburse pharmacies in the aggregate is subject to a Federal upper limit (FUL) ceiling price. The Affordable Care Act enacted in March 2010 changed the methodology by which the Centers for Medicare & Medicaid Services (CMS) calculates the FULs so that the FUL is based on no less than 175 % of the weighted-average of the monthly average manufacturer prices (AMPs) reported to the government by manufacturers of each of the therapeutically-equivalent multiple source drugs. In addition, under the Medicaid Drug Rebate Program, manufacturers are required, as a condition of Federal payment for their drugs under Medicaid, to pay rebates to state Medicaid programs on drugs dispensed to Medicaid beneficiaries in the state. The amount of the basic rebate is calculated for non-innovator multiple source drugs as 13 % of AMP, and for innovator drugs as the greater of 23.1 % of AMP or AMP minus the best price of the drug. Both innovator and non-innovator drugs are also subject to an additional rebate if AMP raises faster than inflation when compared to a base period AMP. Before implementation of the new FUL methodology on April 1, 2016, CMS used average wholesale price (“AWP”) or Wholesale Acquisition Cost (“WAC”) in the calculation of FULs. States have also historically used AWP or WAC in setting Medicaid reimbursement rates for drugs. Under the Affordable Care Act, States were required to shift from an estimated acquisition cost-based methodology to an actual acquisition cost-based methodology for reimbursing pharmacies for drugs dispensed to Medicaid beneficiaries. Most states’ actual acquisition-cost based reimbursement formulas are survey based with many states utilizing the CMS-contractor produced National Average Drug Acquisition Cost (“NADAC”) survey data. Many of the legislative changes to the Medicaid Drug Rebate Program and Medicaid reimbursement formulas under the Affordable Care Act stemmed from civil lawsuits brought by states against pharmaceutical manufacturers in which there were allegations that the defendants overstated AWPs or WACs, which were used by state agencies to calculate drug reimbursements to healthcare providers. The Collective Bargaining Agreement dated April 6, 2011, as amended and extended by the collective bargaining dated January 5, 2017 and July 2, 2020, among Taro Israel, the Histadrut Trade Union and Taro Israel’s Employees Committee (the “Collective Bargaining Agreement”) is valid until December 31, 2023 , and automatically renews for one-year periods unless notice is provided by a party three months prior to the end of a term. The Collective Bargaining Agreement memorializes current employee-employer relations practices of Taro as well as additional rights relating to job security, compensation and other benefits. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | NOTE 14: — SHAREHOLDERS’ EQUITY a. Pertinent rights and privileges of ordinary shares: 1. 100 % of the rights to profits are allocated to the ordinary shares. 2. 100 % of the dissolution rights are allocated to the ordinary shares. 3. Two-thirds of the voting power of all of the Company’s shares is allocated to the ordinary shares. b. Founders’ shares: One-third of the voting power of all of the Company’s shares is allocated to the founders’ shares. c. Stock option plans: The Company’s 1999 Stock Incentive Plan (“1999 plan”) provided for the issuance of incentive stock options, non-qualified stock options, or stock appreciation rights to key employees and associates of the Group. As of March 31, 2022, 2021, and 2020 , no options were outstanding, and no further options are available for future grants. d. Net (loss) income per share: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 Net (loss) Shares Per Net income Shares Per Net income Shares Per Basic and diluted EPS $ 58,266 37,641,087 $ 1.55 $ ( 386,653 ) 38,209,726 $ ( 10.12 ) $ 244,241 38,460,056 $ 6.35 e. As of March 31, 2022, the accumulated other comprehensive (loss) comprised of unrealized (loss) from hedge accounting of ($ 157,220 ) and unrealized (loss) from available for sale securities of ($ 11,745 ) . As of March 31, 2021, the accumulated other comprehensive (loss) comprised of unrealized (loss) from hedge accounting of ($ 156,905 ) , and unrealized gain from available for sale securities of $ 5,284 . Unrealized gains (losses) on marketable securities reclassified out of accumulated other comprehensive (loss) to financial income (expense) on the income statement were $ 565 , $ 2,421 , and $ 420 during the years ended March 31, 2022, 2021, and 2020 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15: — INCOME TAXES a. Corporate income tax rate in Israel: Taxable income of Israeli companies is subject to corporate income tax at the rate of 23.0 % for the years ended March 31, 2022, 2021, and 2020. b. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: The Company is an “industrial company” as defined by this law and, as such, is entitled to certain income tax benefits, mainly increased depreciation rates in respect of machinery and equipment (as prescribed by regulations published under the Inflationary Adjustments Law) and the right to claim public issuance expenses, amortization of acquired patents and other intangible property rights as deductions for tax purposes. c. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investments Law”): Various production and development facilities of the Company have been granted “Approved Enterprise” and “Benefited Enterprise” status, which provided certain benefits, including tax exemptions and reduced tax rates for a defined period. The benefits available to an Approved Enterprise and Benefited Enterprise relate only to taxable income attributable to the specific investment program and are conditioned upon terms stipulated in the Investments Law and the related regulations and the criteria set forth in the applicable certificate of approval (for an Approved Enterprise). If the Company does not fulfill these conditions, in whole or in part, the benefits can be canceled and the Company may be required to pay additional tax to refund the benefits, in an amount linked to the Israeli consumer price index plus interest and potential penalties. The Company qualified as a foreign investors’ company, or FIC. FICs are entitled to further reductions in the tax rate normally applicable to Approved or Benefited Enterprises, depending on the level of foreign ownership. The tax rate ranges between 10 % (when foreign ownership is 90 % or more) to 25 % (when the foreign ownership is below 49 %). In the years ended March 31, 2020 and 2019, the Company had two active plans, one Approved Enterprise under the Alternative Benefits Program (Plan 5) and one Benefited Enterprise (Plan 6), granting us a package of benefits, subject to compliance with applicable requirements. Under Plan 5 (benefit period starting 2007), the Company was entitled to an exemption from corporate income tax on undistributed profits for a period of two years following implementation of such plan and to a reduced tax rate of 10 % to 25 % (depending on the level of foreign investment) for eight additional years thereafter. With respect to Plan 5, given the high level of investments in such plan, we met the conditions to qualify as a “High Level Foreign Investment Company” which entitled Plan 5 to an additional five years of benefits, subject to receipt of approval from the Israeli Investment Center (“IIC,” now called the “Authority for Investments and Development of the Economy and Industry”). On November 5, 2019, we received the approval from the IIC regarding the five-year extension of Plan 5, subject to meeting certain pre-agreed additional conditions that will be examine by the IIC at the end of the extension period. Under Plan 6 (benefit period starting 2010), the Company was entitled to an exemption from corporate income tax on undistributed profits for a period of two years and a reduced tax rate of 10 % to 25 % (depending on the level of foreign investment) for eight additional years thereafter. The entitlement to these benefits was conditional upon the Company fulfilling the requirements of the Investments Law, regulations published thereunder and the certificate of approval for the specific investments in the case of Approved Enterprises. In the event of failure to comply with these requirements, the benefits may be reduced or canceled and the Company may be required to refund the amount of the benefits it received, in whole or in part, including linkage and interest. As of March 31, 2022, Management believes that the Company complied with all of the aforementioned requirements. The “Approved Enterprise” and “Benefited Enterprise” statuses were applicable to our production and development facilities through the year ending on March 31, 2020, as the Company made an irrevocable election to forego previously granted benefits and apply the tax benefits under the 2011 Amendment and/or the 2017 Amendment. Following the Budget Bill, if the Company pays a dividend (deemed or actual), Clawback Tax shall be applicable to the pro-rata portion of the dividend, which is attributed to the tax-exempt profits, on the gross amount of such dividend. The Company has decided not to declare dividends out of such tax-exempt income. Accordingly, no deferred income taxes have been provided on income attributable to the Company’s Approved and/or Benefited Enterprises. Dividends paid by a company, the source of which is income derived from the Approved Enterprise accrued during the benefits period, are generally subject to withholding tax at a rate of 15 % (which is withheld and paid by or on behalf of the company paying the dividend), and such withholding tax may be reduced by an applicable treaty if such dividends were paid during the benefits period or at any time up to 12 years thereafter. The 12-year limitation does not apply to a FIC. For the years ended March 31, 2022 and 2021, income not eligible for Approved/Benefited/Special Preferred Technological Enterprise benefits is taxed at the regular corporate income tax rate. d. The New Incentives Regime—Amendment 68 to the Investment Law Under Amendment 68 to the Investment Law (“Amendment 68”), upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all qualifying industrial income of such company (an “Industrial Company”), as opposed to the previous law’s incentives, which were limited to income from Approved/Benefited Enterprises during the benefits period. Under the law, when the election is made, the uniform tax rate for 2014 and onwards will be 9 % in areas in Israel designated as Development Zone A (decreased to 7.5% as of January 1, 2017) and 16 % elsewhere in Israel. The decrease of the uniform tax rate to 7.5 % was effective for the reporting periods starting April 1, 2017. The profits of these Industrial Companies will be freely distributable as dividends, subject to withholding tax of 20 % or lower, under an applicable tax treaty and a certificate from the ITA allowing for such withholding taxes. Certain “Special Preferred Enterprise” that meet more stringent criteria (significant investment, R&D or employment thresholds), and will enjoy further reduced tax rates of 5 % in Zone A and 8 % elsewhere. In order to be classified as a “Special Preferred Enterprise,” the approval of three governmental authorities in Israel is required. On August 24, 2020, the Company submitted to the ITA an announcement declaring its irrevocable choice to forego the benefits granted to it prior to the 2011 Amendment, and the application of the tax benefits under the 2011 Amendment and/or the 2017 Amendment, starting with the fiscal year ending March 31, 2020. e. The New Technological Enterprise Incentives Regime – 2017 Amendment to the Investment Law Amendment 73 to the Investment Law (the "2017 Amendment”), was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017. The 2017 Amendment is based on the OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project and introduced the incentive regimes of “Preferred Technological Enterprise” and of "Special Preferred Technological Enterprise", as described below. These new regimes are in addition to the other existing post Amendment 68 tax incentives regimes under the Investment Law. The new incentives regime will apply to "Preferred Technological Enterprises" that meet the “Preferred Enterprise” requirements and certain additional conditions, including all of the following: 1. The Enterprise’s R&D expenses in the three years prior to the current tax year must be greater than or equal to 7 %, on average, out of the total revenue of the Company owning the Enterprise or exceed NIS 75 million (approximately $ 23 million) per year; and 2. The Company which owns the Enterprise must also satisfy one of the following conditions: • at least 20 % of the workforce (or at least 200 employees) are employees of which their salaries are fully allocated to R&D expenses; • a venture capital investment of an amount of NIS 8 million (approximately $ 2.4 million) was previously made in the company, provided that the company did not change its field of business after the investment; or • growth in sales (assuming the Company’s sales in the current tax year and in each of the three preceding years was at least NIS 10 million (approximately $ 3 million)) or workforce (assuming the Company’s workforce in the current tax year and in each of the three preceding years included at least 50 employees) by an average of 25 % in the course of three years preceding the tax year in comparison to the prior tax year. Alternatively, in lieu of meeting the above conditions, it is possible to meet the conditions prescribed by the Chief Scientist in the Ministry of Economy and Industry in consultation with the Director General of the Ministry of Finance and with the approval of the Minister of Finance, as prescribed within the Encouragement of Capital Investments (conditions indicating that the enterprise is promoting innovation for the purpose of its characterization as a Preferred Technological Enterprise) - 2019 ("Innovation Promoting Enterprise Regulations”), and receive an approval from the Ministry of Economy and Industry confirming the compliance with the aforesaid conditions, indicating that the enterprise in an “Innovation Promoting Enterprise”. A “ Special Preferred Technological Enterprise” is an enterprise that meets the “Preferred Technological Enterprise” conditions, and in addition is a part of a group of companies that have total annual consolidated revenues of at least NIS 10 billion (approximately $ 3 billion). Preferred Technological Enterprises will be subject to a corporate tax rate of 7.5 % for operations in Development Zone A or 12 % for operations outside of Development Zone A with respect to the portion of their income derived from certain types of proprietary IP as defined within the Investment Law and which were generally developed in Israel, while Special Preferred Technological Enterprises will be subject to 6 % with respect to income related to such IP, all subject to the “NEXUS approach”. The withholding tax on dividends from these enterprises will be 4 % for dividends paid to a foreign company and the distributing company is held by foreign companies at a rate of at least 90 % and for other dividend distributions, the withholding tax rate shall be 20 % or a lower rate under a tax treaty, if applicable, and subject to a certificate from the ITA allowing for such withholding taxes. We have evaluated the likely effect of the 2017 Amendment, as well as the Company’s compliance with the applicable threshold conditions, and believe that the Company qualifies as a Special Preferred Technological Enterprise starting with the fiscal year beginning on April 1, 2020. Also, on October 4, 2021, the Company received an approval from the Ministry of Economy and Industry stating that it is in compliance with Section 2 of the Innovation Promoting Enterprise Regulations, indicating that the enterprise is an “Innovation Promoting Enterprise” starting from 2019 and through 2021. The Company is currently pursuing the renewal of the Innovation Promoting Enterprise certificate for 2022-2024. f. Economic Efficiency Law (legislative amendments for the purpose of achieving the objectives of the 2020-2021 budget) On November 2, 2021, the Economic Efficiency Law (legislative amendments for the purpose of achieving the objectives of the 2020-2021 budget) (“Budget Bill”) was legislated. As part of the Budget Bill, Section 74 of the Investment Law was amended in the following manner. Section 74(d)(4)(b) of the Investment Law that enabled companies with accumulated tax-exempt profits, which were distributing dividends, to source such dividends wholly using their non-exempt income, was canceled. Hence, any distribution out of Approved/Benefitted Enterprise profits entails the distribution of a pro-rata portion of tax-exempt profits (and the recapture of tax thereof). The tax recapture (“Clawback Tax” ), is the tax from which the company was exempt at the time such tax-exempt profits were generated, depending on the level of foreign investment in the company at such time (at a rate of 10 %- 25 %). Also, Section 74(d1) of the Investment Law, which compels companies with accumulated tax-exempt profits to attribute a pro-rata portion of the distribution to their tax-exempt profits upon a deemed dividend distribution (in accordance with the provisions of Section 51(h) and 51B(b) of the Encouragement Law) or an actual dividend distribution, and apply Clawback Tax thereof, was legislated. These changes are in effect with regards to dividends distributed starting from August 15, 2021. “Trapped Profits” Law- Temporary Order The Budget Bill also enables Israeli companies that have trapped profits, which are generally subject to Clawback Tax upon their distribution, to “release” such profits with up to a 60 % “discount” on the applicable capital income tax (CIT) (Clawback Tax), but not less than a 6 % CIT rate. The applicable CIT rate is determined based on a formula that considers the ratio of the “released” profits out of the tax-exempt profits and the original CIT the company was exempt from (maximum benefit is reached if the entire amount of tax-exempt profits is “released ”). In order to enjoy the said benefit, the company must meet the “designated investment” requirement within five years from the tax year in which it “released ” the trapped profits (detailed rules apply). This amount should be invested in the purchase of productive assets, research and development expenses in Israel or the salaries of additional employees. This Temporary Order is in force for tax-exempt profits that will be “released” (without the requirement to distribute those profits) during a one-year period from November 15, 2021. g. Measurement of taxable income under the Income Tax (Inflationary Adjustments) Law, 1985 of Israel: With respect to the Israeli entity, commencing in taxable year 2003, the Company elected to measure its taxable income and file its tax returns in USD in keeping with Israeli Income Tax Regulations, 1986 (Principles Regarding the Management of Books of Account of Foreign Invested Companies and Certain Partnerships and the Determination of Their Taxable Income). Such an election was binding to the Company for three years. Accordingly, commencing taxable year 2003, results for tax purposes are measured in USD terms. After the initial three-year term, the Company must make the election on an annual basis. Through taxable year 2021, the Company has consistently elected, for tax purposes, to measure its earnings in USD. h. (Loss) income before income taxes is comprised of the following: Year ended March 31, 2022 2021 2020 Domestic (Israel) $ ( 39,781 ) $ 14,338 $ 99,182 Foreign (North America and the Cayman Islands) 117,639 ( 405,411 ) 198,853 Income (loss) before taxes $ 77,858 $ ( 391,073 ) $ 298,035 i. Taxes on income are comprised of the following: Year ended March 31, 2022 2021 2020 Current taxes $ ( 112 ) $ 5,234 $ 55,895 Prior years' benefits ( 3,495 ) ( 3,462 ) ( 9,995 ) Deferred income taxes 23,199 7,895 7,585 $ 19,592 $ 9,667 $ 53,485 Domestic (Israel) $ 8,658 $ 7,459 $ 4,177 Foreign (North America) 10,934 2,208 49,308 $ 19,592 $ 9,667 $ 53,485 Included within current and deferred income tax expense are benefits relating to research and development tax credits in Taro Canada of $ 686 , $ 649 , and $ 664 for the years ended March 31, 2022, 2021, and 2020, respectively. Taro Canada uses the “flow-through” method and therefore records the benefits in earnings in the period the tax credits are utilized. On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which, among other provisions, allows U.S. corporations to carry existing losses back to the preceding five years . The Company expects to receive a benefit due to the increased value of its losses when carried back to preceding years in which the U.S. federal corporate income tax rate was 35 % versus the current 21 %. j. Reconciliation of the statutory tax rate of the parent company in Israel to the effective consolidated tax rate: Year ended March 31, 2022 2021 2020 Statutory tax rate (in Israel) 23.0 % 23.0 % 23.0 % (Decrease) increase in effective tax rate due to: Utilization of net operating losses ( 8.5 %) 2.6 % 0.0 % FX on tax payments ( 2.0 %) 0.8 % 0.4 % Write-down and amortization of TNA transferred IP 0.2 % 0.1 % 0.0 % Taxable capital gain ( 0.0 %) 0.1 % 0.0 % Non-deductible expenses (unrecognized income) ( 0.4 %) ( 0.1 %) 0.0 % Change in deferred taxes due to change in tax rate ( 4.2 %) ( 0.3 %) 0.0 % Taxes from prior years 0.9 % ( 0.5 %) ( 0.8 %) Uncertain tax positions, net 14.2 % ( 0.9 %) ( 0.6 %) Change in valuation allowance on deferred tax asset ( 3.8 %) ( 1.2 %) 0.0 % Different tax rates applicable to non-Israeli subsidiaries 2.5 % ( 2.5 %) 1.3 % Non-deductible portion of settlements 0.0 % ( 23.6 %) 0.0 % Net operating loss carryback (1) 0.0 % 0.0 % ( 1.3 %) Tax benefits from reduced tax rates under benefit programs and other 3.3 % 0.0 % ( 4.1 %) Effective consolidated tax rate 25.2 % ( 2.5 %) 17.9 % (1) Net operating loss carryback is attributed to the CARES Act which was enacted in the U.S. on March 27, 2020. The CARES Act, among other provisions, allows U.S. corporations to carry existing losses back to the preceding five years . The Company expects to receive a benefit due to the increased value of its losses when carried back to preceding years in which the U.S. federal corporate income tax rate was 35 % versus the current 21 %. k. Current taxes are calculated at the following combined federal and local rates: Year ended March 31, 2022 2021 2020 On Israeli operations (not including “Approved Enterprise”) 23.0 % 23.0 % 23.0 % On U.S. operations * 21.0 % 21.0 % 21.2 % On Canadian operations * 25.0 % 25.0 % 25.0 % * The U.S. and Canadian subsidiaries are taxed on the basis of the tax laws prevailing in their countries of residence. The Canadian subsidiary qualifies for research and development tax credits and manufacturing and processing credits, thereby reducing its effective tax rate. l. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and carryforward losses. March 31, 2022 2021 Deferred tax assets: Operating loss carryforward $ 37,479 $ 35,404 Capital loss carryforward 17,568 17,705 Deferred revenue 10,564 17,169 Property, plant, and equipment 2,549 1,438 Intangible assets 31,969 34,836 Accrued expenses 46,943 60,862 Bad debt allowance 152 212 Hedge accounting 23 — Marketable securities 1,348 — Other, net 5,517 10,077 Total deferred tax assets 154,112 177,704 Valuation allowance for deferred tax assets ( 22,175 ) ( 27,857 ) Net deferred tax assets 131,937 149,847 Deferred tax liabilities: Property, plant, and equipment ( 6,770 ) ( 8,991 ) Marketable securities — ( 541 ) Hedge accounting ( 48 ) ( 17 ) Other, net ( 238 ) ( 198 ) Total deferred tax liabilities ( 7,055 ) ( 9,747 ) Net deferred tax assets $ 124,882 $ 140,100 Domestic (Israel) $ 4,499 $ 4,888 Foreign (North America) 120,383 135,212 $ 124,882 $ 140,100 The deferred income taxes are presented on the Consolidated Balance Sheets as follows: March 31, 2022 2021 Among non-current assets $ 124,882 $ 142,007 Among long-term liabilities - ( 1,907 ) $ 124,882 $ 140,100 m. Carryforward tax losses: 1. The Company: As of March 31, 2022, the Company has $ 233,665 carryforward capital losses. 2. Canadian subsidiary: As of March 31, 2022, this subsidiary has carryforward losses of $ 104,714 . 3. U.S. subsidiary As of March 31, 2022, this subsidiary has carryforward losses of $ 16,119 . n. The Company’s Board of Directors has determined that its U.S. subsidiary will not pay any dividends for the foreseeable future. o. At March 31, 2022, deferred income taxes were not provided for on a cumulative total of $ 1.3 billion of the undistributed earnings of Taro Canada, which are not taxable provided earnings remain undistributed. p. Foreign withholding taxes have been accrued as necessary by the Company and its subsidiaries. q. Federal tax assessments: The Company completed its tax assessments with the Israeli tax authorities for years through March 31, 2016. On March 28, 2022, the ITA issued a tax assessment with respect to the year ending March 31, 2017. The total tax liability arising from the assessment as of the date of its issuance amounts to NIS 38.5 million ($ 12.3 million), including interest and linkage to the Israeli Customer Price Index. The Company intends to timely submit a tax objection to the ITA. With respect to the years ending March 31, 2018 and through March 31, 2020, the Company is under examination by the ITA. The Company may also be subject to examination by the Israeli tax authorities for the years ending March 31, 2021 and onward. The Company believes that its tax provision is adequate to satisfy any assessments resulting from examination of these years. Taro U.S.A. completed its tax assessments with the U.S. tax authorities for the years through March 31, 2015. The U.S. federal tax return for the period ending Ma r ch 31, 2016 is open to examination, due to the filing of a refund claim arising from the carryback of net operating losses. The period in which Taro U.S.A.’s tax return for the years ending March 31, 2017 through March 31, 2018 may be examined have expired and these years are no longer subject to federal audit. Taro Canada completed its tax assessments with the Canadian tax authorities for the periods through March 15, 2017. The Company’s tax provision was materially adequate to satisfy these assessments. Taro Canada remains subject to examination by the Canadian tax authorities for periods after March 15, 2017, according to the statute of limitations. The Company believes that its tax provision is adequate to satisfy any assessments resulting from examinations related to these years. r. Uncertain tax positions: The Company adopted FASB ASC Section 740-10-25, “ Income Taxes-Overall-Recognition ,” effective January 1, 2007, which prescribes a model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. See Note 2.h. Year ended March 31, 2022 2021 2020 Unrecognized tax exposure at beginning of year $ 26,921 $ 25,258 $ 28,188 Increases as a result of positions taken in prior period 1,389 769 382 Decreases as a result of positions taken in prior period — ( 5,025 ) ( 7,913 ) Increases as a result of positions taken in current period 6,268 5,919 4,601 Unrecognized tax exposure at end of year $ 34,578 $ 26,921 $ 25,258 The total amount of interest and linkage to Consumer Price Index recognized on the Consolidated Statement of Operations for the years ended March 31, 2022, 2021, and 2020 were $ 3,859 , $ 1,236 , and $ 1,224 , respectively. The total amount of interest and linkage to Consumer Price Index recognized on the Consolidated Balance Sheets on March 31, 2022 and 2021 were $ 7,643 and $ 3,783 , respectively. The total amount of unrecognized tax benefits, which would impact the effective tax rate if recognized, was $ 34,578 and $ 26,921 on March 31, 2022 and 2021 , respectively. |
Selected Statements of Income D
Selected Statements of Income Data | 12 Months Ended |
Mar. 31, 2022 | |
Text Block [Abstract] | |
Selected Statements of Income Data | NOTE 16: — SELECTED STATEMENTS OF INCOME DATA Year ended March 31, 2022 2021 2020 United States $ 376,677 $ 383,829 $ 495,673 Canada 130,066 110,167 97,997 Israel 47,915 46,574 42,817 Other 6,689 8,400 8,282 Sales, net $ 561,347 $ 548,970 $ 644,769 Selling, marketing, general and administrative expenses: Selling and marketing $ 48,340 $ 32,861 $ 31,754 Advertising 8,280 5,681 4,902 General and administrative * 57,057 52,813 56,757 Settlements and loss contingencies 61,446 558,924 — $ 175,123 $ 650,279 $ 93,413 * Including provision for doubtful accounts $ 15,213 $ ( 1,761 ) $ 2,382 Financial (income) expenses: Interest and exchange differences on long-term liabilities $ 1,653 $ 1,363 $ 725 Income in respect of deposits ( 1,331 ) ( 2,432 ) ( 11,714 ) Interest from marketable securities ( 8,509 ) ( 19,105 ) ( 22,655 ) Foreign currency transaction (loss) gain ( 1,985 ) 365 ( 14,838 ) $ ( 10,172 ) $ ( 19,809 ) $ ( 48,482 ) |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 17: — SEGMENT INFORMATION a. Geographic Area Information: The Group operates in one industry segment, which produces, researches, develops, and markets pharmaceutical products. Management organizes the Company’s operations based on geographic segments, which are presented below in accordance with FASB ASC Paragraph 280-10-50-1, “ Segment Reporting – Overall – Disclosure – Operating Segments.” Israel Canada U.S.A. Other Consolidated Year ended March 31, 2022 and as of March 31, 2022: Net sales * $ 47,915 $ 130,066 $ 376,677 $ 6,689 $ 561,347 Long-lived assets ** $ 117,913 $ 101,387 $ 31,191 $ 8,355 $ 258,846 Year ended March 31, 2021 and as of March 31, 2021: Net sales * $ 46,574 $ 110,167 $ 383,829 $ 8,400 $ 548,970 Long-lived assets ** $ 122,983 $ 61,027 $ 35,455 $ — $ 219,465 Year ended March 31, 2020 and as of March 31, 2020: Net sales * $ 42,817 $ 97,997 $ 495,673 $ 8,282 $ 644,769 Long-lived assets ** $ 123,679 $ 63,506 $ 38,379 $ — $ 225,564 * Based on customer’s location, including sales to unaffiliated customers and Sun. ** Includes property, plant and equipment, net; goodwill and intangible assets, net. b. For the year ended March 31, 2022 , the Company had net sales to two different U.S. customers of 10.1 % and 8.9 % of consolidated net sales. For the year ended March 31, 2021 , the Company had net sales to two different U.S. customers of 12.6 % and 10.5 % of consolidated net sales. For the year ended March 31, 2020 , the Company had net sales to two different U.S. customers of 13.0 % and 11.5 % of consolidated net sales. c. Sales by therapeutic category, as a percentage of total net sales for the years ended March 31, 2022, 2021, and 2020, were as follows: Year ended March 31, Category 2022 2021 2020 Dermatological and topical 60 % 58 % 63 % Neuropsychiatric 13 % 16 % 17 % Cardiovascular 6 % 7 % 6 % Anti-inflammatory 3 % 3 % 3 % Other 18 % 16 % 11 % Total 100 % 100 % 100 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 18: — RELATED PARTY TRANSACTIONS In addition to Sun controlling 85.7 % of the voting power in the Company as of March 31, 2022, the Company has substantial relationships with Sun. Certain Taro Board members are also members of various Sun entities board of directors, including Taro’s Chairman, Dilip Shanghvi who is also Managing Director of Sun Pharma’s board of directors. In addition, certain Taro officers and executives are also executives of Sun. Arrangements with Sun Since 2013, in the ordinary course of business, Taro has entered into various commercial transactions, including product distribution and logistics, manufacturing and service agreements, with Sun. The Company reviews each of these transactions and believes that the terms of these transactions are comparable to those offered by or that could be obtained from unrelated third parties. Pursuant to Israeli requirements, all material transactions were presented to the Audit Committee, which determined that each such transaction was not considered extraordinary, as defined in the Israeli Companies Law and therefore did not require shareholder approval. The Audit Committee further determined the approval requirements for the different types of transactions. Sun and Taro renewed a services arrangement (the “Services Agreement”) effective April 1, 2021, that allows the companies to share the services of certain employees of the respective companies involved in certain North American management and operations functions in North America. The companies are required to maintain records (the “Service Reports”) of the costs associated with the provision of the services under the Services Agreement, and allocate such costs between the companies, based upon approved allocation methodologies. The Services Agreement requires our Audit Committee to review the Service Reports on a semi-annual basis and, the Services Agreement, as a whole, on an annual basis to determine its efficacy and whether it is in the Company’s best interests. Each of the employees providing services under the Services Agreement is required to sign a written acknowledgment of his/her receipt of, and agreement to be bound by (a) the confidentiality and non-disclosure agreement between Sun and Taro, and (b) guidelines for consideration in the performance of such services, including the identification of potential conflicts of interest. In May 2018, Taro Canada signed an agreement with Sun’s affiliate, Ranbaxy Pharmaceuticals Canada Inc., which is now Sun Pharma Canada Inc., under which Taro Canada acts as the exclusive distributor for a portfolio of Sun and Ranbaxy, Inc. products in Canada. Under this agreement, Taro Canada purchases and controls inventory, and additionally, Sun and Ranbaxy Inc. pay Taro Canada a sales and distribution fee. |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination | NOTE 19: — BUSINESS COMBINATION Alchemee Acquisition On February 28, 2022 , the Company acquired 100 % own ership of Alchemee LLC (“Alchemee”), pursuant to a Share and Asset Purchase Agreement, dated February 28, 2022. The aggregate purchase price for the acquisition totaled $ 100 million, which is inclusive of a working capital adjustment of $ 1 million. Upon closing, the Company paid an all-cash purchase price of approximately $ 99 million funded from available liquidity. As a result of the purchase, the Company acquired Proactiv ® , an over-the-counter dermatology brand. The acquisition of Alchemee was intended to build on the Company’s existing consumer health business and is expected to strengthen the leadership position in dermatology by providing consumer health coverage through the Proactiv® product line. Acquisition-related expenses consist of transaction costs which represent external costs directly related to the acquisition of Alchemee and primarily include expenditures for professional fees such as legal, accounting and other directly related incremental costs incurred to close the acquisition by both the Company and Alchemee. The Company incurred transaction costs of approximately $ 1 million in connection with the transaction. The acquisition of Alchemee has been accounted for as a business combination and is included in the Company’s consolidated financial statements commencing February 28, 2022. The fair value of all the acquired assets and liabilities summarized below is provisional pending finalization of the Company’s acquisition accounting. The Company retained the services of third-party valuation specialists in determining the fair value of certain tangible and intangible assets, under the supervision of management. The Company believes that such preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. Final determination of the fair value may result in further adjustments to the amounts presented below. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. Measurement period adjustment will reflect new information obtained about facts and circumstances that existed as of the acquisition date. The following table summarizes the allocation of purchase price to the preliminary fair values of the assets acquired and liabilities assumed as of the date of acquisition. (in millions) Preliminary Values as of Cash and cash equivalents $ 8 Accounts receivable and other: Trade, net 28 Other receivables and prepaid expenses 4 Inventories 19 Property, plant and equipment, net 1 Intangible assets ─ software 8 Deferred tax assets 6 Intangible assets ─ brand 44 Right-to-use assets 3 Goodwill 10 Total assets acquired 131 Accounts payable: Trade payables 21 Other current liabilities 6 Right-of-use liability 3 Other liabilities 1 Total liabilities assumed 31 Total consideration transferred $ 100 In connection with this acquisition, the Company recorded goodwill of $ 10 million based on the amount by which the purchase price exceeded the preliminary estimate of the fair value of the net assets acquired. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the acquired assembled workforce, none of which qualifies for recognition as an intangible asset. The primary areas that remain preliminary as of March 31, 2022, relate to the fair values of the Alchemee brand (the “Brand”). The goodwill recognized upon acquisition is expected to be deductible for U.S. federal income tax purposes. The Company engaged a third-party valuation specialist to aid in the analysis of the fair value of the acquired intangibles. All estimates, key assumptions, and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party. Intangible assets (i.e. Brand) were estimated using a Multi-period Excess Earnings Method (“MEEM”). Under this method, an intangible asset’s fair value is equal to net earnings attributable to the brand being measured. This is based on present value of the incremental after-tax cash flows (excess earnings) attributable solely to the brand over its remaining useful life. An income and expenses forecast were built based upon revenue and expense estimates. The estimated useful lives and fair values of the identifiable intangible assets at acquisition date were as follows: (in millions) Weighted-Average Estimated Fair Values Brand 15 $ 44 Pro forma Impact of Business Combination The unaudited pro forma financial results have been prepared using the acquisition method of accounting and are based on the historical financial information of the Company and Alchemee. The unaudited pro forma condensed financial information does not reflect any operating efficiencies and expected realization of cost savings or synergies associated with the acquisition. The unaudited pro forma information presented below is for informational purposes only and do not purport to be indicative of the consolidated results of operations had the acquisitions actually occurred at the beginning of applicable comparable prior reporting period or of the results of future operations of the consolidated business. Since the Company's financial results for the year ended March 31, 2022, reflect only one month of Alchemee's actual results, the impact is immaterial. March 31, 2022 March 31, 2021 (unaudited) (unaudited) Revenues $ 736,875 $ 738,211 Net earnings (loss) $ 41,118 $ ( 398,799 ) The pro forma financial information for all periods presented above has been calculated after adjusting the results of Alchemee to reflect the business combination accounting effects resulting from this acquisition. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 20: — SUBSEQUENT EVENTS Subsequent to March 31, 2022, the Company received one approval from the FDA . The Company currently has a total of nineteen ANDAs awaiting FDA approval, including four tentative approvals. Regarding the Generic Drug Pricing Antitrust Litigation, MDL No. 2724, the Court granted preliminary approval on May 11, 2022 of Taro’s settlement with the DPP class plaintiffs. As a result, on June 8, 2022, within the required time period, Taro paid the $ 67.6 million settlement payment to the DPP class plaintiffs, subject to a reduction of up to $ 8 million depending on the volume of certain class members that may opt-out of the settlement. |
Schedule II_ - Valuation and Qu
Schedule II: - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: - Valuation and Qualifying Accounts | SCHEDULE II: — VALUATION AND QUALIFYING ACCOUNTS Schedules have been omitted as the required information is provided elsewhere in these financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The consolidated financial statements are prepared in conformity with U.S. GAAP. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements, and assumptions. Management believes that the estimates, judgements and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgements and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Group’s most critical estimates are used in its determination of its sales incentives reserves, accounts receivable allowance, inventory reserves, income taxes, uncertain tax positions, fixed assets, intangible assets, derivative instruments, and contingencies. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars (“USD”): A majority of the revenue of the Company and certain of its subsidiaries is generated in USD. In addition, a substantial portion of the costs of the Company and these subsidiaries is incurred in USD. Management believes that the USD is the primary currency of the economic environment in which the Company and these subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the USD, requiring re-measurement from the local currency into USD for each of these entities. All exchange gains and losses resulting from the re-measurement are reflected in the Consolidated Statements of Operations as financial income or expense, as appropriate. Prior to April 1, 2019, the functional currency of the Company’s Canadian subsidiary was the Canadian dollar (“CAD”). Accordingly, the financial statements of the Canadian subsidiary were translated into USD. All balance sheet accounts were translated using the exchange rates in effect at the balance sheet date. Amounts recorded in the Consolidated Statements of Operations were translated using the average exchange rate prevailing during the year. The resulting translation adjustments were reported as a component of shareholders’ equity under accumulated other comprehensive income. Effective as of the Company’s fiscal year beginning April 1, 2019, Taro Canada’s functional currency became the USD. FASB ASC Topic 830, “ Functional Currency Matters ,” requires a change in functional currency to be reported as of the date it is determined there has been a change, and it is generally accepted practice that the change is made at the start of the most recent period that approximates the date of the change. Management determined it would enact this change effective on April 1, 2019. While the change was based on a factual assessment, the determination of the date of the change required management’s judgement given the change in the primary economic and business environment, in which Taro Canada operates, have evolved over time. As part of management’s functional currency assessment, changes in economic facts and circumstances were considered. This included analysis of changes in: management of operations, process, and in the composition of cash and marketable securities balances. The Company has centralized different functions, including treasury and investment portfolio measurement, which resulted in a stronger focus on the USD currency for Taro Canada. Additionally, as budgeting has also been centralized for the Company, Taro Canada has implemented budgeting in USD, whereas this was previously performed in CAD. Taro Canada’s cash inflows consist primarily of USD cash balances and less of CAD, as also reflected in the budget. The transfer of significant intangible assets to Taro Canada, as a result of the winding down of TNA, has reduced the relevance of the foreign currency position on the balance sheet of Taro Canada. The Group decided to focus Taro Canada’s sales market as the U.S. market, with the majority of all sales to the U.S. denominated in USD. This was followed by centralizing budgets and facilitating effective netting and hedging activities. Assuming current business operating model stays constant, management believes that the USD cash balances will continue to increase, while CAD cash balances will continue to produce a net outflow. Management re-evaluated all indicators established in ASC 830-10-55-5 to determine the functional currency of Taro Canada. Such indicators include i) cash flow, ii) sales price, iii) sales market, iv) expense, v) financing and vi) intercompany transactions and arrangements. Management determined that the cash flow indicators and the sales market indicators were most relevant to Taro Canada operations and its primary economic environment. At the time of the assessment adopted on April 1, 2019, cash flows generated by Taro Canada that relate to its individual assets and liabilities now directly affect the Company’s cash flows and are readily available for remittance to the Company. The majority of cash flow from Taro Canada’s operations is denominated in USD, with the sales market for Taro Canada’s products now mostly in the U.S. Approximately 75 % of Taro Canada’s revenue is to the U.S. market, with over 80 % of Taro Canada’s plant production, in terms of units, being produced for the US market. Significant asset and liability line items on Taro Canada’s balance sheet are comprised almost solely (greater than 90 %) of USD denominated transactions. Furthermore, most of Taro Canada’s generated cash flows are now invested in USD based cash and cash equivalents or marketable securities. Since such investments are short-term, cash is readily available for remittance to other Taro entities. Thus, the USD is the primary currency from which Taro Canada generates and accumulates cash. When considering all relevant facts together, management concluded that the USD best reflects the currency of the primary economic environment in which Taro Canada currently operates. Therefore, USD is the functional currency as a result of the change in the most significant economic facts and circumstances from cash flow and sales market indicators, as well as intra-entity transactions and arrangements, which are material to Taro Canada. As a result, the Company adopted USD as the functional currency for Taro Canada effective April 1, 2019. The change was accounted for prospectively from the date of the change in accordance with FASB ASC Topic 830, “Foreign Currency Matters.” The translated balances of monetary and nonmonetary assets and liabilities recorded in Taro Canada’s financial statements as of the end of the prior reporting period became the new accounting basis for those assets and liabilities in the period of the change. To the extent the entity had monetary assets and liabilities denominated in the old functional currency, such balances created transactional gains and losses subsequent to the change in functional currency. The amount recorded in the currency translation adjustment account for prior periods was not reversed upon the change in functional currency. The exchange rate on the date of the change became the historical rate for subsequent re-measurement of nonmonetary assets and liabilities into the new functional currency. The following table summarizes the impact on both consolidated net income and other comprehensive income (loss) utilizing USD as the functional currency of Taro Canada as of March 31, 2020, compared to the related impact if the functional currency of Taro Canada would have remained CAD (excluding foreign exchange from transactions denominated in CAD recorded in the respective period): USD (in USD)* CAD (in USD)** (Unaudited Pro Forma) Financial (income) expense, net - attributed to foreign translation gain $ ( 14,838 ) $ ( 46,667 ) Other comprehensive loss - attributed to foreign currency translation adjustments $ ( 1 ) $ ( 92,959 ) *Based on consolidated amounts of the Group for the fiscal year ended March 31, 2020, which was the first fiscal year Taro Canada utilized USD as the functional currency. Includes Taro Canada amounts reported in USD with USD as functional currency. **Based on unaudited pro forma consolidated amounts of the Group for the fiscal year ended March 31, 2020. Includes Taro Canada unaudited pro forma amounts reported in USD with CAD as functional currency. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated in consolidation and non-controlling interest is included in shareholders’ equity. On June 1, 2021, the Company and The Taro Development Corporation each transferred its ownership of the shares of Taro U.S.A. to Taro Canada. Taro U.S.A. is now 100 % owned by Taro Canada, which remains 100 % owned by the Company. During the year ended March 31, 2022, the board of directors of Taro Canada approved two capital contributions in the amounts of $ 265.0 million and $ 107.6 million to Taro U.S.A. by reducing the Taro U.S.A.’s indebtedness to Taro Canada. |
Cash and cash equivalents | d. Cash and cash equivalents: Cash equivalents are highly-liquid investments that are readily convertible into cash, typically with an original maturity of three months or less. Short-term bank deposits: Bank deposits with maturities of more than three months, but less than one year, are included in short-term deposits. Such deposits are stated at cost which approximates market value. The Company has short-term deposits on March 31, 2022 , of $ 47.6 million and $ 0 on March 31, 2021 . |
Business combination | e. Business combination The Company allocates the purchase price of an acquired business to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. Any excess of the purchase price over the fair value of the net assets acquired is recorded as goodwill. The amounts of revenues and earnings of the acquired business since the acquisition date are included in the Consolidated Statements of Operations. Determining the fair value of assets acquired and liabilities assumed is judgmental in nature and can involve the use of significant estimates and assumptions. Fair value and useful life determinations are based on, among other factors, estimates of future expected cash flows, revenue growth rates, operating margins and appropriate discount rates used in computing present values. These estimates may materially impact the net income or loss in periods subsequent to acquisition through depreciation and amortization, and in certain instances through impairment charges, if assets become impaired in the future. Transaction costs associated with the business combination are expensed as incurred and reflected in operating expenses. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The Company includes the results of operations of the business that it has acquired in its consolidated results prospectively from the date of acquisition. |
Marketable securities | f. Marketable securities: Marketable securities, consisting of both debt securities and equity securities, are comprised primarily of corporate bonds, government securities, U.S. Treasuries, certificates of deposit, municipal bonds, preferred stock, and commercial paper. The marketable debt securities were designated as available-for-sale (“AFS”). Accordingly, these securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income, a separate component of shareholders’ equity. The equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in consolidated statements of operation. Realized gains and losses on the sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest and dividends on securities are included in financial income, net. The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities results in the value of the investments being below the cost basis of such securities and when such decline is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in financial income, net in the Consolidated Statements of Operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The Company adopted ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326) ” on April 1, 2020 . In accordance with ASC 326-30, for an AFS debt security for which there is neither an intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance, rather than a write-down of the amortized cost basis. As a result, entities will be able to record reversals of credit losses in current period income as they occur. Additionally, the allowance is limited by the amount that the fair value is less than the amortized cost basis, considering that an entity can sell its investment at fair value to avoid realization of credit losses. An entity should not consider the length of time that the security has been in an unrealized loss position to avoid recording a credit loss. Further, in determining whether a credit loss exists, the historical and implied volatility and recoveries or additional declines in the fair value after the balance sheet date should no longer be considered. Changes in the allowance will be recorded in the period of the change as credit loss expense (or reversal of credit loss expense). As of March 31, 2022, the adoption of ASU 2016-13 did not have a material impact on our financial position and results of operations. During the years ended March 31, 2022, 2021, and 2020 , the Company did no t own or sell any marketable securities previously impaired. The Company adopted ASU No. 2016-01, “ Financial Instruments – Overall (Subtopic 825-10). ” The amended guidance focuses on the recognition and measurement of financial assets and liabilities. The adoption of ASU 2016-01 did not have a material impact on our financial position and results of operations. |
Allowance for doubtful accounts | g. Allowance for doubtful accounts: The allowance for doubtful accounts is calculated primarily with respect to specific balances, for which, in the opinion of management, collection of such balances is doubtful. The allowance, in the opinion of management, is sufficient to cover probable uncollectible balances. The Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” on April 1, 2020 . The new guidance requires an entity to measure the allowance for expected credit losses by utilizing information including historical data and current economic conditions, plus the use of reasonable supportable forecasts. The adoption of ASU 2016-13 did not have a material impact on our financial position and results of operations. |
Inventories | h. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items, short-dated inventory, excess inventory, or obsolescence. Changes in these provisions are charged to cost of sales. Cost is determined as follows: Raw and packaging materials – weighted-average cost basis. Finished goods and work in progress – weighted-average production costs including materials, labor and direct and indirect manufacturing expenses. Purchased products for commercial purposes – weighted-average cost basis. |
Taxes | i. Taxes: (1) Deferred income taxes: Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is “more likely than not” that a portion of the deferred tax assets will not be realized. For the years ended March 31, 2022 and 2021, in accordance with the required updates in ASU No. 2015-17, all deferred tax liabilities and assets are classified as non-current. (2) Tax contingencies: The Company follows a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50 % likely to be realized upon ultimate settlement. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax positions under the provision for income taxes. A liability for unrecognized tax benefits was recorded in accordance with ASC 740 amounting to $ 34,578 and $ 26,921 as of March 31, 2022 and 2021, respectively. (3) Income taxes: Income taxes are accounted for in accordance with the use of the liability method, whereby deferred tax asset and liability account balances are determined for temporary differences between the financial reporting and tax basis of assets and liabilities, and for carryforward losses and credits. Deferred taxes are measured using tax rates and laws that will be in effect when the differences are expected to reverse. In certain cases management determined that it was more likely than not that the Company will not benefit from the deferred tax assets in subsidiaries, and a valuation allowance was provided against the deferred tax assets carried by such subsidiaries. In future years, if it is more likely than not that the subsidiary will be in a position to utilize its deferred tax asset, the valuation allowance for such assets will be modified. |
Property, plant and equipment | j. Property, plant and equipment: (1) Property, plant and equipment is stated at cost, net of accumulated depreciation. Payroll and other costs that are direct incremental costs necessary to bring an asset to the condition of its intended use incurred during the construction and validation period of property, plant, and equipment are capitalized to the cost of such assets. (2) Depreciation is calculated utilizing the straight-line method over the estimated useful lives of the assets, from the date the assets are ready for their intended use, at the following annual rates: % Building 2.5 - 10 Machinery and equipment 5 - 10 Motor vehicles 20 Furniture, fixtures, office equipment, computer equipment and software 6 - 33 Leasehold improvements are depreciated using the straight-line method over the shorter of their useful lives or the terms of the leases (generally five - ten years ). (3) Certain costs incurred for computer software developed or obtained for internal use is required to be capitalized. As of March 31, 2022 and 2021, the Group capitalized $ 20,298 and $ 17,332 of software costs, respectively. As of March 31, 2022, 2021 and 2020, capitalized internal costs, were $ 0 for all three years. (4) Software costs are amortized using the straight-line method over their estimated useful life (generally three to five years ). The Company capitalizes qualifying internally developed software development costs incurred during the application development stage, as long as it is probable the project will be completed, and the software will be used to perform the function intended, Capitalization of such costs ceases once the project is substantially complete and ready for its intended use. Costs related to maintenance of internal-use software are expensed in the period incurred. If capitalized projects are determined to no longer be in use, they are impaired, and the costs and accumulated depreciation are removed from the accounts. The resulting loss on impairment, if any, is included in the consolidated statements of operations in the period of impairment. |
Lease of land from Israel Land Administration | k. Lease of land from the Israel Land Authority (“ILA”): The Company leases several parcels of land from the ILA. The lease period of the industrial parcels ends between 2018 and 2060 . The Company has the right to extend the lease agreement ended 2018 for an additional period of 49 years and is currently in the process of extending the lease agreement. The ILA lease agreements are standard agreements covering substantial portions of the land of Israel. The standard agreements call for a lease period of 49 years, with an option for one additional Lease Period (i.e., total of 98 years). A majority of the Company’s leases are in the beginning of the second 49 year period, and the remaining leases still in the first 49 year period have the option for the one additional lease period. The ownership of the land is not transferred at the end of the lease period, however, in certain conditions the lessee may purchase the land from the ILA. The expectation, based on practice and accumulated experience is that the renewal price would be substantially below fair market value. Since such leases do not qualify as a capital lease, they are being accounted for as operating leases. The prepaid lease amount is included in long-term receivables and other assets and amortized over the term of the lease. As of April 1, 2019, the Company commenced lease accounting in accordance with ASU 2016-02, “ Leases (Topic 842) .” Refer to Note 9 and Note 13 for additional details on lease accounting. |
Goodwill | l. Goodwill: The goodwill of the Company is not amortized, but rather is subject to an annual impairment test on March 31 (or more frequently if impairment indicators arise). The Group operates in one operating segment, comprising its only reporting unit. As of April 1, 2020 , the Company adopted ASU 2017-04 in which the goodwill impairment tests are now conducted in one step. In this step, if it is determined that the net book value of the reporting unit exceeds its fair value, impairment will be recorded for the difference. The Company determined the fair value using the market approach, which is based on the market capitalization by using the share price of the Company on the NYSE and an appropriate control premium. As of March 31, 2022 and 2021 , the market capitalization of the Company was higher than the net book value, therefore no impairment was recorded. |
Contingencies | m. Contingencies: The Company may be involved in various patent, product liability, consumer, commercial, or environmental claims, government investigations, and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, the Company records accruals for these types of contingencies to the extent that the Company concludes their occurrence is probable and that the related liabilities are estimable. The Company records anticipated recoveries under existing insurance contracts that are virtually certain of occurring and at the gross amount that is expected to be collected. |
Intangible assets and deferred charges and long-lived assets | n. Intangible assets and deferred charges and long-lived assets: Intangible assets and deferred charges: Acquired intangible assets and product rights to be held and used are amortized over their useful life of a weighted-average amortization period of between five to 20 years using a straight-line method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. Long-lived assets: The Group’s long-lived assets, excluding goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment exists when the carrying amount of the asset exceeds the aggregate future undiscounted cash flows expected to be generated by the asset. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the asset. During the years ended March 31, 2022 and 2021 , the Company did no t record any impairment charge. |
Comprehensive income | o. Comprehensive income: The comprehensive income statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relates to unrealized gains and losses on available for sale securities and foreign currency translation adjustments. |
Treasury shares | p. Treasury shares: The Company repurchases its ordinary shares from time to time on the open market and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity. During the years ended March 31, 2022, 2021, and 2020, the Company repurchased 341,413 shares, 332,033 shares, and 280,719 shares, respectively. For the year ended March 31, 2022, the shares were repurchased in accordance with a Rule 10b5-1 program. On November 15, 2019, the Company commenced a modified “Dutch auction” tender offer to repurchase up to $ 225 million in value of its ordinary shares. In accordance with the terms and conditions of the tender offer, which expired on December 16, 2019 , the Company accepted for payment 280,719 ordinary shares at the final purchase price of $ 91.00 per share. When treasury stock is reissued, the Company charges the excess of the purchase cost, including related share-based compensation expenses, over their issuance price (loss) to retained earnings. The purchase cost is calculated based on the specific identification method. The Company did no t reissue treasury shares during the three years ended March 31, 2022, 2021 and 2020. In cases where the purchase cost is lower than the re-issuance price, the Company credits the difference to additional paid-in capital. |
Revenue recognition | q. Revenue recognition: The Company ships products to its customers only in response to, and to the extent of, the orders that customers submit to the Company. Depending on the terms of our customer arrangements, revenue is generally recognized when the product is received by the customer (“FOB Destination Point”) or at the time of shipment (“FOB Shipping Point”). When the Company recognizes and records revenue from the sale of its pharmaceutical products, the Company, in the same financial reporting period, records an estimate of various future deductions related to the sale. This has the effect of reducing the amount of reported product sales. These deductions include the Company’s estimates, which may require significant judgement of chargebacks, product returns, rebates, and other sales deductions. Chargebacks result from pricing arrangements the Company has with end-user customers establishing contract prices which are lower than the wholesalers’ acquisition costs or invoice prices. When these customers buy the Company’s products from their wholesaler of choice, the wholesaler issues a credit memo (chargeback) to the Company for the difference between the invoice price and the end-user contract price. Chargeback reserves are estimated using current wholesaler inventory data and historical data. Product returns result from agreements allowing the Company’s customers to return unsold inventory that is expired or close to expiration and such returns are deducted from revenue. Product return reserves are calculated using the average lag period between sales and product expiry, historical product returns experience, and specific return exposures to estimate the potential obligation for returns of inventory in the distribution channel. Rebates result from contractual agreements with the Company’s customers and are earned based on the Company’s direct sales to customers or the Company’s customers’ sales to third parties. Rebate reserves from the Company’s direct sales to customers and the Company’s customers’ sales to third parties are estimated using historical and contractual data. The Company generally offers discounts to its customers for payments within a certain period of time. Cash discount reserves are calculated by multiplying the specified discount percentage by the outstanding receivable at the end of each period. Reserves for returns, Medicaid and indirect rebates are included in current liabilities. All other sales deductions allowances are recorded as accounts receivable reserves. The reserve for returns is included in current liabilities as substantially all of these returns will not be realized until after the year-end accounts receivable balances are settled. Medicaid and indirect rebates are included in current liabilities because the Company does not have direct customer relationships with any of the payees. The Company offers incentives to certain resellers and retailers through various marketing programs where the Company agrees to reimburse them for advertising costs incurred to include the Company’s products. The Company accounts for these in accordance with FASB ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ,” as reductions of revenue unless the customer receives an identifiable benefit in exchange for the consideration that is sufficiently separable from the customer’s purchase of the products and the fair value of the benefits can be reasonably estimated. |
Research and development | r. Research and development: Research and development expenses are charged to expense as incurred. Payments made for research and development services prior to the services being rendered are recorded as prepaid expenses on our Consolidated Balance Sheet and expensed as provided. |
Royalty-bearing grants | s. Royalty-bearing grants: Royalty-bearing grants from the government of Israel through the Israeli National Authority for Technological Innovation (the “IIA”) (formerly operating as Office of the Chief Scientist of the Ministry of Economy of the State of Israel) for funding approved research and development projects are recognized at the time the Company is entitled to such grants, on the basis of the related costs incurred. The Company did no t earn any grants during the years ended March 31, 2022, 2021 and 2020 . |
Advertising expenses | t. Advertising expenses: The Group expenses advertising costs as incurred. Product samples are recorded within prepaid expenses on the Consolidated Balance Sheet and recorded within advertising expenses when provided to potential customers. Advertising expenses were $ 8,280 , $ 5,681 , and $ 4,902 for the years ended March 31, 2022, 2021 and 2020 , respectively. |
Sales and other taxes collected and remitted to governmental authorities | u. Sales and other taxes collected and remitted to governmental authorities: The Company collects various taxes from customers and remits them to governmental authorities. These taxes are recorded on a net basis and therefore do not impact the Statement of Operations. |
Basic and diluted net income per share attributable to Taro | v. Basic and diluted net (loss) income per ordinary share attributable to Taro: Basic net (loss) income per ordinary share is calculated based on the weighted-average number of ordinary shares outstanding during each year. Diluted net (loss) income per ordinary share is calculated based on the weighted-average number of ordinary shares outstanding during each year, plus potential dilutive ordinary shares considered outstanding during the year (except where anti-dilutive). |
Freight and distribution costs | w. Freight and distribution costs: The Company’s accounting policy is to classify shipping and handling costs as a part of sales and marketing expense. Freight, distribution costs, and distribution warehousing costs related to shipping and handling to customers, primarily through the use of common carriers or external distribution services amounted to $ 22,576 , $ 13,202 , and $ 11,954 for the years ended March 31, 2022, 2021 and 2020 , respectively. |
Concentrations of credit risk | x. Concentrations of credit risk: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, short and long-term marketable securities, and trade receivables. Cash and cash equivalents are principally invested in major banks in Israel, the U.S., and Canada. Such deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group’s cash and cash equivalents, and the investments that comprise the short and long-term marketable securities, are financially sound and a low credit risk therefore exists with respect to these financial instruments. These deposits may be redeemed upon demand and, therefore, bear minimal risk. The Group’s trade accounts receivables are mainly derived from sales to customers in the U.S., Canada, Europe, and Israel. On March 31, 2022 , two different customers represented approximately 41.6 % and 22.6 % of the Company’s trade accounts receivable. The Group has adopted credit policies and standards intended to mitigate inherent risk while accommodating sales growth. The Group performs ongoing credit evaluations of its customers’ financial condition when deemed necessary, but does not require collateral for its customers’ accounts receivable. |
Fair value of financial instruments | y. Fair value of financial instruments: The carrying amount of cash and cash equivalents, trade and other receivables, trade payables and other payables approximate their fair value, due to the short-term maturities of these instruments. As of March 31, 2022 and 2021 , the Company did no t have any amounts outstanding under borrowing arrangements. The fair value of currency and interest rate contracts is determined by discounting to the present all future cash flows of the currencies to be exchanged at interest rates prevailing in the market for the period the currency exchanges are due and expressing the results in USD at the current spot foreign currency exchange rate. |
Accounting for derivatives | z. Accounting for derivatives: The Company recognizes all of its derivative instruments as either assets or liabilities at fair value, in the Consolidated Balance Sheet. The accounting for changes (i.e., gains or losses) in the fair value of a derivative instrument depends on whether the instrument has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. For derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. For derivatives which qualify as a fair value hedge, changes in fair value are reported with the carrying amount of the hedged asset or liability with cash flows reported on the Consolidated Statement of Cash Flows consistent with the classification of cash flows from the underlying items being hedged. For derivatives that qualify as a cash flow hedge, the effective portion of these derivatives’ fair value is initially reported as a component of other comprehensive income with cash flows reported on the Consolidated Statement of Cash Flows consistent with the classification of cash flows from the underlying items being hedged. The designation is based upon the nature of the exposure being hedged. On March 31, 2022, 2021, and 2020, the Company had derivative instruments designated as hedging instruments. As of October 1, 2018, the Company commenced hedging accounting for Israel in accordance with ASU No. 2017-12, “Derivatives and Hedging (Topic 815) .” The effective date of this standard is for annual periods beginning after December 15, 2018, however the Company early adopted as a result of hedging accounting implementation. The Company elected to designate the entire change in the hedging derivatives’ value including the forward component, using the “critical terms match” method. Since the Company uses the “critical terms match,” no effectiveness test is needed and the entire change in the designated value of the derivative is assumed to be effective. The Company assesses the critical terms as follows: the forward is for the purchase of the same quantity, at the same currency, at the same time and at the same location as the hedged forecasted payment. According to ASU 2017-12, for purposes of assessing whether the qualifying criteria for the critical terms match method are met for a group of forecasted transactions, an entity may assume that the hedging derivative matures at the same time as the forecasted transactions if both the derivative maturity and the forecasted transactions occur within the same 31-day period or fiscal month. The Company elected to deem the time criterion as qualified according to the 31-day period method. The company is aware that if any of the critical terms cease to exist or if the counterparty credit rating becomes significant, then the critical terms method cannot be continued. In such a case the company will use a “long haul method” in order to assess the hedge effectiveness or will discontinue the hedging relationship. The effective portion of the designated value is reported under a hedging reserve in other comprehensive income during the hedge period. Once the hedged item affects statement of operations, the hedging reserve value is reclassified to the same item. The ineffective portion, if any, is reported in statement of operations. For derivative instruments not designated as hedging instruments for accounting purposes, the gain or loss is recognized in financial income, net in the Consolidated Statement of Operations during the period of change with the cash flows reported on the Consolidated Statements of Cash Flows consistent with the classification of cash flows from the underlying items being hedged. See Note 10. |
Fair value measurements | aa. Fair value measurements: There is a fair value hierarchy that distinguishes between assumptions based on market data obtained from independent sources (observable inputs) and those based on an entity’s own assumptions (unobservable inputs). |
Impact of recently adopted accounting standards | bb. Impact of recently adopted accounting standards: In March 2020, the FASB issued ASU 2020-04 “ Reference Rate Reform (Topic 848) .” The guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, “ Reference Rate Reform - Scope (Topic 848) ” which focuses on expanding the scope of Topic 848 to include derivative instruments impacted by discounting transition. The guidance was effective for the Company fiscal year beginning April 1, 2021 , including interim periods within that year. The adoption of ASU 2021-01 does not have a material impact on our financial position or results of operations. In December 2019, the FASB issued ASU No. 2019-12, “ Simplifying the Accounting for Income Taxes .” The guidance focuses on simplifying accounting for income taxes by removing certain exceptions and simplifying certain requirements under Topic 740. The guidance was effective for the Company’s fiscal year beginning April 1, 2021 . The adoption of ASU 2019-12 does not have a material impact on our financial position or results of operations. In August 2018, the FASB issued ASU No. 2018-14, “ Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20) .” The guidance focuses on additional disclosure of reasons for significant gains and losses to changes in the benefit obligation for the period, in addition to removal and clarification of existing disclosures. The guidance was effective for the Company’s fiscal year beginning April 1, 2021 , on a retrospective basis. The adoption of ASU 2018-14 does not have a material impact on our financial position or results of operations. Impact of recently issued accounting standards not yet adopted: In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815) - Fair Value Hedging - Portfolio Layer Method.” ASU 2022-01 clarifies the guidance in ASC Topic 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets, and amends the guidance in ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” , that, among other things, established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible. ASU 2022-01 renames that method the “portfolio layer” method. The provisions of ASU No. 2022-01 are effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Top 832): Disclosures by Business Entities about Government Assistance.” ASU 2021-10 is intended to increase the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. Diversity currently exists in the recognition, measurement, presentation, and disclosure of government assistance received by business entities because of the lack of specific authoritative guidance. Requiring disclosures about government assistance in the notes to financial statements will provide comparable and transparent information to investors and other financial statement users to enable them to understand an entity’s financial results and prospects for future cash flows. This standard is effective for all entities, for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect ASU No. 2021-10 to have a significant impact on its results of operations, financial position and cash flows and related disclosures I n October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to (1) Recognition of an acquired contract liability, and (2) Payment terms and their effect on subsequent revenue recognized by the acquirer. This amendment is effective for all entities, for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2021-08 does not currently impact the Company’s financial statements. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, “Lease (Topic 842), Lessors - Certain Leases with Variable Lease Payments.” ASU 2021-05 amends the lease classification requirements for lessors when classifying and accounting for a lease with variable lease payments that do not depend on a reference rate index or a rate. The update provides criteria, that if met, the lease would be classified and accounted for as an operating lease. It is intended to increase transparency and comparability among organizations. This amendment is effective for all entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this ASU on the Company’s consolidated financial statements, but does not believe the adoption of this standard will have a material impact on the Company’s consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40).” The ASU addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. This amendment is effective for all entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company does not intend to early adopt and does not believe adoption of this ASU will have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06) ”, to reduce complexity in applying GAAP to certain financial instruments with characteristics of liabilities and equity. The guidance in ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, “ Debt: Debt with Conversion and Other Options ,” that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract and accounted for as derivatives. In addition, the amendments revise the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract. The amendments in ASU 2020-06 further revise the guidance in ASC 260, “ Earnings Per Share ,” to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company did not early adopt and continues to evaluate the impact of the provisions of ASU 2020-06 on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Impact on Net Income and Other Comprehensive Income (Loss) | The following table summarizes the impact on both consolidated net income and other comprehensive income (loss) utilizing USD as the functional currency of Taro Canada as of March 31, 2020, compared to the related impact if the functional currency of Taro Canada would have remained CAD (excluding foreign exchange from transactions denominated in CAD recorded in the respective period): USD (in USD)* CAD (in USD)** (Unaudited Pro Forma) Financial (income) expense, net - attributed to foreign translation gain $ ( 14,838 ) $ ( 46,667 ) Other comprehensive loss - attributed to foreign currency translation adjustments $ ( 1 ) $ ( 92,959 ) *Based on consolidated amounts of the Group for the fiscal year ended March 31, 2020, which was the first fiscal year Taro Canada utilized USD as the functional currency. Includes Taro Canada amounts reported in USD with USD as functional currency. **Based on unaudited pro forma consolidated amounts of the Group for the fiscal year ended March 31, 2020. Includes Taro Canada unaudited pro forma amounts reported in USD with CAD as functional currency. |
Schedule of annual depreciation rates of property, plant and equipment | % Building 2.5 - 10 Machinery and equipment 5 - 10 Motor vehicles 20 Furniture, fixtures, office equipment, computer equipment and software 6 - 33 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | a. Marketable securities: March 31, 2022 2021 Short-term marketable securities $ 522,028 $ 418,480 Long-term marketable securities 435,189 557,209 $ 957,217 $ 975,689 |
Summary of Both Short-Term and Long-Term Marketable Securities | b. The following is a summary of both short-term and long-term marketable securities by type: March 31, 2022 2021 Amortized Cost Gross Unrealized Gain (Loss) through Other Comprehensive Income Gross Unrealized Gain (Loss) through Profit & Loss Market Value Amortized Cost Gross Unrealized Gain (Loss) through Other Comprehensive Income Gross Unrealized Gain (Loss) through Profit & Loss Market Value Marketable securities: Corporate bonds $ 743,624 $ ( 11,840 ) $ — $ 731,784 $ 679,315 $ 4,823 $ — $ 684,138 Government securities 106,235 ( 531 ) — 105,703 146,057 249 — 146,306 Commercial paper 22,678 ( 121 ) — 22,557 47,934 4 — 47,938 Preferred stock - debt instrument 2,685 ( 235 ) — 2,449 2,990 44 — 3,033 Preferred stock - equity instrument 11,649 — ( 1,616 ) 10,034 10,475 — 77 10,553 Certificates of deposit 46,296 ( 144 ) — 46,152 42,897 27 — 42,924 Municipal bonds 26,683 ( 276 ) — 26,408 23,479 82 — 23,562 Other securities 12,261 ( 132 ) — 12,129 17,115 120 — 17,235 Total marketable securities $ 972,111 $ ( 13,279 ) $ ( 1,616 ) $ 957,217 $ 970,262 $ 5,350 $ 77 $ 975,689 |
Estimated Fair Value of Marketable Securities by Contractual Maturity | c. The estimated fair value of marketable securities as of March 31, 2022 and 2021 , by contractual maturity, are as follows: March 31, 2022 2021 Amortized Market Amortized Market Cost Value Cost Value Available-for-sale marketable securities: Matures in less than five years $ 953,150 $ 940,212 $ 956,797 $ 962,103 Matures in more than five years 7,312 6,971 2,990 3,033 960,462 947,183 959,787 965,136 Investment at fair value through Profit & Loss 11,649 10,034 10,475 10,553 $ 972,111 $ 957,217 $ 970,262 $ 975,689 |
Accounts Receivable and Other (
Accounts Receivable and Other (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Components of Trade Accounts Receivable, Net | The following table summarizes the impact of accounts receivable reserves and allowance for doubtful accounts on the gross trade accounts receivable balances at each balance sheet date: March 31, 2022 2021 Trade accounts receivable, gross $ 437,557 $ 409,198 Reserves for sales deductions: Chargebacks ( 111,308 ) ( 119,090 ) Other sales deductions ( 52,343 ) ( 53,058 ) Customer rebates ( 10,708 ) ( 22,498 ) Allowance for doubtful accounts ( 16,226 ) ( 1,013 ) Trade accounts receivable, net $ 246,972 $ 213,539 |
Components of Other Receivables and Prepaid Expenses | Other receivables and prepaid expenses: March 31, 2022 2021 Government authorities $ 27,752 $ 26,112 Prepaid expenses 13,229 12,891 Due from related parties 14,371 9,835 Advances to suppliers 991 1,134 Interest receivable 311 143 Other 3,073 3,232 $ 59,727 $ 53,347 |
Sales Incentives (Tables)
Sales Incentives (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Text Block [Abstract] | |
Sales Deductions and Product Returns | The following tables summarize the activities for sales deductions and product returns for the years ended March 31, 2022, 2021, and 2020: For the year ended March 31, 2022 Beginning Acquired Provision recorded for current period sales (1) Credits Ending Accounts Receivable Reserves Chargebacks $ ( 119,090 ) $ — $ ( 1,182,744 ) $ 1,190,526 $ ( 111,308 ) Rebates and Other ( 76,569 ) ( 5,165 ) ( 165,174 ) 167,692 ( 79,216 ) Total $ ( 195,659 ) $ ( 5,165 ) $ ( 1,347,918 ) $ 1,358,218 $ ( 190,524 ) Current Liabilities Returns $ ( 52,236 ) $ ( 493 ) $ ( 52,282 ) $ 48,978 $ ( 56,033 ) Other (2) ( 18,560 ) ( 354 ) ( 52,279 ) 50,474 ( 20,719 ) Total $ ( 70,796 ) $ ( 847 ) $ ( 104,561 ) $ 99,452 $ ( 76,752 ) For the year ended March 31, 2021 Beginning Acquired Provision recorded for current period sales (1) Credits Ending Accounts Receivable Reserves Chargebacks $ ( 104,552 ) $ — $ ( 1,173,810 ) $ 1,159,272 $ ( 119,090 ) Rebates and Other ( 70,630 ) — ( 180,079 ) 174,140 ( 76,569 ) Total $ ( 175,182 ) $ — $ ( 1,353,889 ) $ 1,333,412 $ ( 195,659 ) Current Liabilities Returns $ ( 61,406 ) $ — $ ( 37,011 ) $ 46,181 $ ( 52,236 ) Other (2) ( 41,562 ) — ( 26,036 ) 49,038 ( 18,560 ) Total $ ( 102,968 ) $ — $ ( 63,047 ) $ 95,219 $ ( 70,796 ) For the year ended March 31, 2020 Beginning Acquired Provision recorded for current period sales (1) Credits Ending Accounts Receivable Reserves Chargebacks $ ( 109,763 ) $ — $ ( 1,104,946 ) $ 1,110,157 $ ( 104,552 ) Rebates and Other ( 113,657 ) — ( 305,098 ) 348,125 ( 70,630 ) Total $ ( 223,420 ) $ — $ ( 1,410,044 ) $ 1,458,282 $ ( 175,182 ) Current Liabilities Returns $ ( 63,818 ) $ — $ ( 37,258 ) $ 39,670 $ ( 61,406 ) Other (2) ( 33,497 ) — ( 77,537 ) 69,472 ( 41,562 ) Total $ ( 97,315 ) $ — $ ( 114,795 ) $ 109,142 $ ( 102,968 ) (1) Includes immaterial amounts of reversals of provisions recorded for prior years’ sales. (2) Includes Medicaid, indirect rebates, and amounts due to customers. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | March 31, 2022 2021 Finished goods $ 105,873 $ 85,956 Raw and packaging materials 62,466 60,299 Work in progress 36,367 28,185 Other 5,733 5,852 $ 210,439 $ 180,292 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Composition of Assets Grouped by Major Classifications | a. Composition of assets grouped by major classifications are as follows: March 31, 2022 2021 Cost: Land $ 7,628 $ 7,628 Buildings 192,922 190,617 Leasehold improvements 5,211 3,552 Machinery and equipment 225,626 219,210 Computer software and equipment 64,164 46,087 Motor vehicles 80 80 Furniture, fixtures and office equipment 15,051 15,542 510,682 482,716 Accumulated depreciation and impairment charges: Buildings $ 92,378 $ 85,139 Leasehold improvements 3,171 2,084 Machinery and equipment 163,266 153,628 Computer software and equipment 40,474 25,445 Motor vehicles 80 80 Furniture, fixtures and office equipment 11,621 10,832 310,990 277,208 Depreciated cost $ 199,692 $ 205,508 |
Intangible Assets and Deferre_2
Intangible Assets and Deferred Costs (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Deferred Costs | March 31, 2022 2021 Cost: Product and distribution rights $ 127,766 $ 85,359 127,766 85,359 Accumulated amortization: Product and distribution rights 80,432 78,593 80,432 78,593 $ 47,334 $ 6,766 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | March 31, 2022 2021 Prepayment of land leased from ILA (1) $ 12,790 $ 13,020 Right-of-use (ROU) assets (2) 5,422 2,729 Intangible assets and deferred costs, net (3) 47,334 6,766 Severance pay fund (4) 1,190 1,211 Other 157 397 $ 66,893 $ 24,123 (1) The ILA lease agreements are standard agreements covering substantial portions of the land of Israel. The standard agreements call for a lease period of 49 years, with an option for one additional lease period (i.e., total of 98 years). A majority of the Company’s leases are in the beginning of the second 49 year period, and the remaining leases still in the first 49 year period have the option for the one additional lease period. This amount was prepaid. See Note 2.j. (2) As of April 1, 2019, the Company commenced lease accounting in accordance with ASU 2016-02, “ Leases (Topic 842) .” The Company currently has leased offices, warehouse space, and equipment under operating leases for periods through 2026 . See Note 13. (3) See Note 8. (4) Under Israeli law, the Company is required to make severance or pension payments to dismissed employees and to employees terminating employment under certain other circumstances. Deposits are made with a pension fund or other insurance plans to secure pension and severance rights for the employees in Israel. These amounts represent the balance of the deposits in those funds (including profits) that will be used to cover the Company’s severance obligations. See Note 12.b. |
Pension, Retirement Savings and Severance Expenses | The Company’s matching contribution to the plans was $ 1,273 , $ 1,369 , and $ 1,133 for the years ended March 31, 2022, 2021, and 2020, respectively. Years ended March 31, 2022 2021 2020 Pension, retirement savings and severance expenses $ 6,732 $ 8,064 $ 6,654 |
Derivative Instruments and Fi_2
Derivative Instruments and Financial Risk Management (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Rate of Inflation, Rate of Devaluation (Appreciation) Against U.S. Dollar and Rate of Exchange of U.S. Dollar | The following table sets forth the annual rate of inflation, the devaluation (appreciation) rate of the New Israeli Shekel (“NIS”) and the CAD against the USD and the exchange rates between the USD and each of the NIS and the CAD at the end of the year indicated: Rate of Devaluation (Appreciation) Rate of Exchange of Rate of Inflation Against USD USD Period ended Israel (1) Canada (2) Israel (1) Canada (2) Israel (1) Canada (2) 3/31/2022 3.48 % 6.66 % ( 4.50 %) ( 0.79 %) 3.18 1.25 3/31/2021 0.20 % 2.20 % ( 6.72 %) ( 10.64 %) 3.33 1.26 (1) Per Bank of Israel. (2) Per J.P. Morgan Chase. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets Measured at Fair Value on Recurring Basis | The fair value of the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2022 and 2021 were as follows: March 31, 2022 March 31, 2021 Quoted of Significant Other Quoted of Significant Other (Level 1) (Level 2) (Level 1) (Level 2) Assets Short-term marketable securities * $ 522,028 $ — $ 418,480 $ — Long-term marketable securities * 422,706 — 543,623 — Long-term debt instruments * 2,449 — 3,033 — Long-term equity instruments * 10,034 — 10,553 — Forward contracts — 808 — 680 $ 957,217 $ 808 $ 975,689 $ 680 Liabilities Forward contracts $ — $ ( 281 ) $ — $ ( 591 ) *Refer to Note 3 for additional details on marketable securities. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | a. Other current liabilities: March 31, 2022 2021 Settlements and loss contingencies (1) $ 202,036 $ 457,674 Returns reserve 56,033 52,236 Accrued expenses 25,181 20,557 Employees and payroll accruals 23,863 20,179 Accrued income taxes 19,695 18,114 Medicaid and indirect rebates 19,347 16,796 Deferred revenue 5,788 7,583 Marketable securities 3,869 10,266 Lease liability 2,204 1,689 Royalties 1,819 2,911 Suppliers of property, plant and equipment 1,452 2,951 Due to customers 1,372 1,764 Legal and audit fees 1,045 1,197 Derivative instruments 281 299 Other ( 99 ) 919 $ 363,886 $ 615,135 (1) See Note 13. |
Schedule of Other Long-Term Liabilities | b. Other long-term liabilities: March 31, 2022 2021 Deferred credits $ 22,643 $ 29,227 Long-term incentive plan 3,786 — Accrued severance pay 1,319 1,315 Deferred revenue 919 1,095 Other 4,132 1,571 $ 32,799 $ 33,208 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Annual Rental Payments, under Non-Cancelable Lease Agreements | a. Companies of the Group have leased offices, warehouse space, and equipment under operating leases for periods through 2026. The minimum annual rental payments, under non-cancelable lease agreements, are as follows: March 31, 2022 3/31/2023 $ 2,238 3/31/2024 1,578 3/31/2025 1,289 3/31/2026 1,057 $ 6,162 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Summary of Net (Loss) Income Per Share | d. Net (loss) income per share: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 Net (loss) Shares Per Net income Shares Per Net income Shares Per Basic and diluted EPS $ 58,266 37,641,087 $ 1.55 $ ( 386,653 ) 38,209,726 $ ( 10.12 ) $ 244,241 38,460,056 $ 6.35 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
(Loss) Income Before Income Income Taxes | h. (Loss) income before income taxes is comprised of the following: Year ended March 31, 2022 2021 2020 Domestic (Israel) $ ( 39,781 ) $ 14,338 $ 99,182 Foreign (North America and the Cayman Islands) 117,639 ( 405,411 ) 198,853 Income (loss) before taxes $ 77,858 $ ( 391,073 ) $ 298,035 |
Components of Taxes on Income | i. Taxes on income are comprised of the following: Year ended March 31, 2022 2021 2020 Current taxes $ ( 112 ) $ 5,234 $ 55,895 Prior years' benefits ( 3,495 ) ( 3,462 ) ( 9,995 ) Deferred income taxes 23,199 7,895 7,585 $ 19,592 $ 9,667 $ 53,485 Domestic (Israel) $ 8,658 $ 7,459 $ 4,177 Foreign (North America) 10,934 2,208 49,308 $ 19,592 $ 9,667 $ 53,485 |
Reconciliation of Statutory Tax Rate of Parent Company to Effective Consolidated Tax Rate | j. Reconciliation of the statutory tax rate of the parent company in Israel to the effective consolidated tax rate: Year ended March 31, 2022 2021 2020 Statutory tax rate (in Israel) 23.0 % 23.0 % 23.0 % (Decrease) increase in effective tax rate due to: Utilization of net operating losses ( 8.5 %) 2.6 % 0.0 % FX on tax payments ( 2.0 %) 0.8 % 0.4 % Write-down and amortization of TNA transferred IP 0.2 % 0.1 % 0.0 % Taxable capital gain ( 0.0 %) 0.1 % 0.0 % Non-deductible expenses (unrecognized income) ( 0.4 %) ( 0.1 %) 0.0 % Change in deferred taxes due to change in tax rate ( 4.2 %) ( 0.3 %) 0.0 % Taxes from prior years 0.9 % ( 0.5 %) ( 0.8 %) Uncertain tax positions, net 14.2 % ( 0.9 %) ( 0.6 %) Change in valuation allowance on deferred tax asset ( 3.8 %) ( 1.2 %) 0.0 % Different tax rates applicable to non-Israeli subsidiaries 2.5 % ( 2.5 %) 1.3 % Non-deductible portion of settlements 0.0 % ( 23.6 %) 0.0 % Net operating loss carryback (1) 0.0 % 0.0 % ( 1.3 %) Tax benefits from reduced tax rates under benefit programs and other 3.3 % 0.0 % ( 4.1 %) Effective consolidated tax rate 25.2 % ( 2.5 %) 17.9 % Net operating loss carryback is attributed to the CARES Act which was enacted in the U.S. on March 27, 2020. The CARES Act, among other provisions, allows U.S. corporations to carry existing losses back to the preceding five years . The Company expects to receive a benefit due to the increased value of its losses when carried back to preceding years in which the U.S. federal corporate income tax rate was 35 % versus the current 21 %. |
Components of Current Taxes | k. Current taxes are calculated at the following combined federal and local rates: Year ended March 31, 2022 2021 2020 On Israeli operations (not including “Approved Enterprise”) 23.0 % 23.0 % 23.0 % On U.S. operations * 21.0 % 21.0 % 21.2 % On Canadian operations * 25.0 % 25.0 % 25.0 % * The U.S. and Canadian subsidiaries are taxed on the basis of the tax laws prevailing in their countries of residence. The Canadian subsidiary qualifies for research and development tax credits and manufacturing and processing credits, thereby reducing its effective tax rate. |
Schedule of Deferred Income Taxes | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and carryforward losses. March 31, 2022 2021 Deferred tax assets: Operating loss carryforward $ 37,479 $ 35,404 Capital loss carryforward 17,568 17,705 Deferred revenue 10,564 17,169 Property, plant, and equipment 2,549 1,438 Intangible assets 31,969 34,836 Accrued expenses 46,943 60,862 Bad debt allowance 152 212 Hedge accounting 23 — Marketable securities 1,348 — Other, net 5,517 10,077 Total deferred tax assets 154,112 177,704 Valuation allowance for deferred tax assets ( 22,175 ) ( 27,857 ) Net deferred tax assets 131,937 149,847 Deferred tax liabilities: Property, plant, and equipment ( 6,770 ) ( 8,991 ) Marketable securities — ( 541 ) Hedge accounting ( 48 ) ( 17 ) Other, net ( 238 ) ( 198 ) Total deferred tax liabilities ( 7,055 ) ( 9,747 ) Net deferred tax assets $ 124,882 $ 140,100 Domestic (Israel) $ 4,499 $ 4,888 Foreign (North America) 120,383 135,212 $ 124,882 $ 140,100 |
Schedule of Deferred Income Taxes Presented on the Consolidated Balance Sheets | The deferred income taxes are presented on the Consolidated Balance Sheets as follows: March 31, 2022 2021 Among non-current assets $ 124,882 $ 142,007 Among long-term liabilities - ( 1,907 ) $ 124,882 $ 140,100 |
Schedule of Uncertain Tax Positions | The Company adopted FASB ASC Section 740-10-25, “ Income Taxes-Overall-Recognition ,” effective January 1, 2007, which prescribes a model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. See Note 2.h. Year ended March 31, 2022 2021 2020 Unrecognized tax exposure at beginning of year $ 26,921 $ 25,258 $ 28,188 Increases as a result of positions taken in prior period 1,389 769 382 Decreases as a result of positions taken in prior period — ( 5,025 ) ( 7,913 ) Increases as a result of positions taken in current period 6,268 5,919 4,601 Unrecognized tax exposure at end of year $ 34,578 $ 26,921 $ 25,258 |
Selected Statements of Income_2
Selected Statements of Income Data (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Text Block [Abstract] | |
Schedule of Selected Statements of Income Data | Year ended March 31, 2022 2021 2020 United States $ 376,677 $ 383,829 $ 495,673 Canada 130,066 110,167 97,997 Israel 47,915 46,574 42,817 Other 6,689 8,400 8,282 Sales, net $ 561,347 $ 548,970 $ 644,769 Selling, marketing, general and administrative expenses: Selling and marketing $ 48,340 $ 32,861 $ 31,754 Advertising 8,280 5,681 4,902 General and administrative * 57,057 52,813 56,757 Settlements and loss contingencies 61,446 558,924 — $ 175,123 $ 650,279 $ 93,413 * Including provision for doubtful accounts $ 15,213 $ ( 1,761 ) $ 2,382 Financial (income) expenses: Interest and exchange differences on long-term liabilities $ 1,653 $ 1,363 $ 725 Income in respect of deposits ( 1,331 ) ( 2,432 ) ( 11,714 ) Interest from marketable securities ( 8,509 ) ( 19,105 ) ( 22,655 ) Foreign currency transaction (loss) gain ( 1,985 ) 365 ( 14,838 ) $ ( 10,172 ) $ ( 19,809 ) $ ( 48,482 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Area Information | a. Geographic Area Information: Israel Canada U.S.A. Other Consolidated Year ended March 31, 2022 and as of March 31, 2022: Net sales * $ 47,915 $ 130,066 $ 376,677 $ 6,689 $ 561,347 Long-lived assets ** $ 117,913 $ 101,387 $ 31,191 $ 8,355 $ 258,846 Year ended March 31, 2021 and as of March 31, 2021: Net sales * $ 46,574 $ 110,167 $ 383,829 $ 8,400 $ 548,970 Long-lived assets ** $ 122,983 $ 61,027 $ 35,455 $ — $ 219,465 Year ended March 31, 2020 and as of March 31, 2020: Net sales * $ 42,817 $ 97,997 $ 495,673 $ 8,282 $ 644,769 Long-lived assets ** $ 123,679 $ 63,506 $ 38,379 $ — $ 225,564 * Based on customer’s location, including sales to unaffiliated customers and Sun. ** Includes property, plant and equipment, net; goodwill and intangible assets, net. |
Schedule of Sales by Therapeutic Category | c. Sales by therapeutic category, as a percentage of total net sales for the years ended March 31, 2022, 2021, and 2020, were as follows: Year ended March 31, Category 2022 2021 2020 Dermatological and topical 60 % 58 % 63 % Neuropsychiatric 13 % 16 % 17 % Cardiovascular 6 % 7 % 6 % Anti-inflammatory 3 % 3 % 3 % Other 18 % 16 % 11 % Total 100 % 100 % 100 % |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of purchase price to the preliminary fair values of the assets acquired and liabilities assumed as of the date of acquisition. (in millions) Preliminary Values as of Cash and cash equivalents $ 8 Accounts receivable and other: Trade, net 28 Other receivables and prepaid expenses 4 Inventories 19 Property, plant and equipment, net 1 Intangible assets ─ software 8 Deferred tax assets 6 Intangible assets ─ brand 44 Right-to-use assets 3 Goodwill 10 Total assets acquired 131 Accounts payable: Trade payables 21 Other current liabilities 6 Right-of-use liability 3 Other liabilities 1 Total liabilities assumed 31 Total consideration transferred $ 100 |
Schedule of Estimated Useful Lives and Fair Values of Identifiable Intangible Assets | The estimated useful lives and fair values of the identifiable intangible assets at acquisition date were as follows: (in millions) Weighted-Average Estimated Fair Values Brand 15 $ 44 |
Schedule of Unaudited Pro Forma Information | The unaudited pro forma information presented below is for informational purposes only and do not purport to be indicative of the consolidated results of operations had the acquisitions actually occurred at the beginning of applicable comparable prior reporting period or of the results of future operations of the consolidated business. Since the Company's financial results for the year ended March 31, 2022, reflect only one month of Alchemee's actual results, the impact is immaterial. March 31, 2022 March 31, 2021 (unaudited) (unaudited) Revenues $ 736,875 $ 738,211 Net earnings (loss) $ 41,118 $ ( 398,799 ) |
General - Additional Informatio
General - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | 31 Months Ended | |||||||
Jul. 20, 2022 | Feb. 28, 2022 | Jun. 01, 2021 | Nov. 15, 2019 | Jul. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | May 31, 2022 | Nov. 04, 2019 | |
General [Line Items] | ||||||||||
Shares repurchase program expiration date | Dec. 16, 2019 | |||||||||
Treasury stock, shares repurchased | 280,719 | 341,413 | 332,033 | 280,719 | ||||||
Treasury stock, average price per share | $ 91 | $ 73.03 | ||||||||
Shares authorized to purchase under stock repurchase program | 300,000,000 | |||||||||
Treasury stock, aggregate purchase price | $ 771,406,000 | $ 746,472,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 224,500,000 | |||||||||
Aquinox Pharmaceuticals (Canada) Inc. [Member] | ||||||||||
General [Line Items] | ||||||||||
Acquisition of all issued and outstanding shares of Aquinox | $ 8,000,000 | |||||||||
Alchemee Acquisition [Member] | ||||||||||
General [Line Items] | ||||||||||
Business acquisition, date of acquisition | Feb. 28, 2022 | |||||||||
Percentage of ownership acquired | 100% | |||||||||
Purchase price | $ 99,000,000 | |||||||||
Taro Pharmaceutical Industries Ltd [Member] | Class A Shares [Member] | ||||||||||
General [Line Items] | ||||||||||
Number of shares acquired | 5 | |||||||||
Taro Pharmaceutical Industries Ltd [Member] | Class B Shares [Member] | ||||||||||
General [Line Items] | ||||||||||
Number of shares acquired | 150 | |||||||||
Taro Development Corporation [Member] | Class A Shares [Member] | ||||||||||
General [Line Items] | ||||||||||
Number of shares acquired | 5 | |||||||||
Taro Pharmaceuticals U.S.A., Inc. [Member] | Taro Canada [Member] | ||||||||||
General [Line Items] | ||||||||||
Percentage of ownership acquired | 100% | |||||||||
Maximum [Member] | ||||||||||
General [Line Items] | ||||||||||
Treasury stock, aggregate purchase price | $ 225,000,000 | |||||||||
Subsequent Event [Member] | ||||||||||
General [Line Items] | ||||||||||
Treasury stock, shares repurchased | 954,165 | |||||||||
Subsequent Event [Member] | 280,719 shares at an Average Price of $91.00 [Member] | ||||||||||
General [Line Items] | ||||||||||
Treasury stock, shares repurchased | 280,719 | |||||||||
Treasury stock, average price per share | $ 91 | |||||||||
Subsequent Event [Member] | 332,033 Shares at an Average Price of $75.23 [Member] | ||||||||||
General [Line Items] | ||||||||||
Treasury stock, shares repurchased | 332,033 | |||||||||
Treasury stock, average price per share | $ 75.23 | |||||||||
Subsequent Event [Member] | 341,413 Shares at an Average Price of $73.03 [Member] | ||||||||||
General [Line Items] | ||||||||||
Treasury stock, shares repurchased | 341,413 | |||||||||
Treasury stock, average price per share | $ 73.03 | |||||||||
Sun Pharmaceutical Industries Ltd. [Member] | ||||||||||
General [Line Items] | ||||||||||
Number of ordinary shares owned by majority share holder | 29,497,813 | |||||||||
Percentage of ordinary shares owned by majority share holder | 78.50% | |||||||||
Vote attributable to share equity | 85.70% | |||||||||
Sun Pharmaceutical Industries Ltd. [Member] | Subsequent Event [Member] | ||||||||||
General [Line Items] | ||||||||||
Percentage of ordinary shares owned by majority share holder | 78.50% | |||||||||
Vote attributable to share equity | 85.70% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||||
Nov. 15, 2019 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) Segment Contribution $ / shares shares | Mar. 31, 2021 USD ($) shares | Mar. 31, 2020 USD ($) shares | Jun. 01, 2021 | Mar. 31, 2019 USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Marketable securities previously impaired owned or sold | $ 0 | $ 0 | $ 0 | |||
Unrecognized tax benefits | $ 34,578,000 | 26,921,000 | $ 25,258,000 | $ 28,188,000 | ||
Lease agreements for an additional period | 49 years | |||||
Lease agreements total period | 98 years | |||||
Number of operating segments | Segment | 1 | |||||
Goodwill impairment | $ 0 | 0 | ||||
Long-lived assets impairment loss | $ 0 | $ 0 | ||||
Treasury stock, shares repurchased | shares | 280,719 | 341,413 | 332,033 | 280,719 | ||
Treasury stock, average price per share | $ / shares | $ 91 | $ 73.03 | ||||
Treasury stock, aggregate purchase price | $ 771,406,000 | $ 746,472,000 | ||||
Shares repurchase program expiration date | Dec. 16, 2019 | |||||
Treasury shares reissued | shares | 0 | 0 | 0 | |||
Royalty-bearing grants earned | $ 561,347,000 | $ 548,970,000 | $ 644,769,000 | |||
Advertising expenses | 8,280,000 | 5,681,000 | 4,902,000 | |||
Shipping and handling costs | 268,212,000 | 252,314,000 | 245,044,000 | |||
Amounts outstanding under borrowing arrangements | 0 | 0 | ||||
Short-term deposits | $ 47,600,000 | 0 | ||||
Taro Canada [Member] | Total Taro Shareholders' Equity [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of ordinary shares owned by majority share holder | 100% | |||||
Taro USA [Member] | Taro Canada [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of ordinary shares owned by majority share holder | 100% | |||||
Number of capital contributions | Contribution | 2 | |||||
Capital contributions, one | $ 265,000,000 | |||||
Capital contributions, two | $ 107,600,000 | |||||
Trade Accounts Receivable [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of customers | two | |||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of customers represent trade accounts receivable | 41.60% | |||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of customers represent trade accounts receivable | 22.60% | |||||
Royalty [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Royalty-bearing grants earned | $ 0 | 0 | 0 | |||
Shipping and Handling [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Shipping and handling costs | 22,576,000 | 13,202,000 | 11,954,000 | |||
Software and Software Development Costs [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Capitalized software cost | 20,298,000 | 17,332,000 | ||||
Capitalized internal costs | $ 0 | 0 | 0 | |||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Tax benefit percentage | 50% | |||||
Lease period | 2018 | |||||
Acquired intangible assets weighted-average useful life | 5 years | |||||
Minimum [Member] | Leasehold Improvements [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 5 years | |||||
Minimum [Member] | Software and Software Development Costs [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 3 years | |||||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Lease period | 2060 | |||||
Acquired intangible assets weighted-average useful life | 20 years | |||||
Weighted average amortization period | 20 years | |||||
Treasury stock, aggregate purchase price | $ 225,000,000 | |||||
Maximum [Member] | Leasehold Improvements [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 10 years | |||||
Maximum [Member] | Software and Software Development Costs [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 5 years | |||||
ASU 2016-13 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2020 | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |||||
ASU 2016-01 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |||||
ASU 2017-04 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2020 | |||||
ASU 2021-01 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2021 | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |||||
ASU 2019-12 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2021 | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |||||
ASU 2018-14 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2021 | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |||||
USD [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of assets and liabilities denominated transactions | 90% | |||||
U.S. [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 75% | |||||
Royalty-bearing grants earned | $ 376,677,000 | 383,829,000 | 495,673,000 | |||
Canada [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Percentage of units produced in production plant | 80% | |||||
Royalty-bearing grants earned | $ 130,066,000 | $ 110,167,000 | $ 97,997,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Impact on Net Income and Other Comprehensive Income (Loss) (Detail) $ in Thousands | 12 Months Ended |
Mar. 31, 2022 USD ($) | |
USD [Member] | |
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | |
Financial (income) expense, net - attributed to foreign translation gain | $ (14,838) |
Other comprehensive loss - attributed to foreign currency translation adjustments | (1) |
Canadian Dollars [Member] | |
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | |
Financial (income) expense, net - attributed to foreign translation gain | (46,667) |
Other comprehensive loss - attributed to foreign currency translation adjustments | $ (92,959) |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Annual Depreciation Rates of Property, Plant and Equipment (Detail) | Mar. 31, 2022 |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 20% |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 2.50% |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 5% |
Minimum [Member] | Furniture, Fixtures, Office Equipment, Computer Equipment and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 6% |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 10% |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 10% |
Maximum [Member] | Furniture, Fixtures, Office Equipment, Computer Equipment and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 33% |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Short-term marketable securities | $ 522,028 | $ 418,480 |
Long-term marketable securities | 435,189 | 557,209 |
Marketable securities | $ 957,217 | $ 975,689 |
Marketable Securities - Summary
Marketable Securities - Summary of Both Short-Term and Long-Term Marketable Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 11,649 | $ 10,475 |
Amortized Cost | 972,111 | 970,262 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (13,279) | 5,350 |
Gross Unrealized Gain (Loss) through Profit & Loss | (1,616) | 77 |
Market Value | 10,034 | 10,553 |
Market Value | 957,217 | 975,689 |
Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 743,624 | 679,315 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (11,840) | 4,823 |
Market Value | 731,784 | 684,138 |
Government Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 106,235 | 146,057 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (531) | 249 |
Market Value | 105,703 | 146,306 |
Commercial Paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 22,678 | 47,934 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (121) | 4 |
Market Value | 22,557 | 47,938 |
Certificates of Deposit [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 46,296 | 42,897 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (144) | 27 |
Market Value | 46,152 | 42,924 |
Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 26,683 | 23,479 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (276) | 82 |
Market Value | 26,408 | 23,562 |
Preferred Stock Equity Instrument [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 11,649 | 10,475 |
Gross Unrealized Gain (Loss) through Profit & Loss | (1,616) | 77 |
Market Value | 10,034 | 10,553 |
Preferred Stock Debt Instrument [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,685 | 2,990 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (235) | 44 |
Market Value | 2,449 | 3,033 |
Other Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 12,261 | 17,115 |
Gross Unrealized Gain (Loss) through Other Comprehensive Income | (132) | 120 |
Market Value | $ 12,129 | $ 17,235 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Other than temporary impairment charges | $ 0 | |
Available-for-sale Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Other comprehensive income relating to marketable securities for foreign exchange gain | $ 149,000 | $ 423,000 |
Marketable Securities - Estimat
Marketable Securities - Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities, Amortized cost, Matures in less than five years | $ 953,150 | $ 956,797 |
Available-for-sale securities, Amortized cost, Matures in more than five years | 7,312 | 2,990 |
Available-for-sale securities, Amortized Cost | 960,462 | 959,787 |
Investment at fair value through Profit & Loss | 11,649 | 10,475 |
Debt and Equity Securities, Amortized Cost | 972,111 | 970,262 |
Available-for-sale securities, Market Value, Matures in less than five years | 940,212 | 962,103 |
Available-for-sale securities, Market Value, Matures in more than five years | 6,971 | 3,033 |
Available-for-sale marketable securities, Market Value | 947,183 | 965,136 |
Investment at fair value through Profit & Loss | 10,034 | 10,553 |
Marketable securities | $ 957,217 | $ 975,689 |
Accounts Receivable and Other -
Accounts Receivable and Other - Components of Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Receivables [Abstract] | ||
Trade accounts receivable, gross | $ 437,557 | $ 409,198 |
Reserves for sales deductions: | ||
Chargebacks | (111,308) | (119,090) |
Other sales deductions | (52,343) | (53,058) |
Customer rebates | (10,708) | (22,498) |
Allowance for doubtful accounts | (16,226) | (1,013) |
Trade accounts receivable, net | $ 246,972 | $ 213,539 |
Accounts Receivable and Other_2
Accounts Receivable and Other - Components of Other Receivables and Prepaid Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Receivables [Abstract] | ||
Government authorities | $ 27,752 | $ 26,112 |
Prepaid expenses | 13,229 | 12,891 |
Due from related parties | 14,371 | 9,835 |
Advances to suppliers | 991 | 1,134 |
Interest receivable | 311 | 143 |
Other | 3,073 | 3,232 |
Other receivables and prepaid expenses | $ 59,727 | $ 53,347 |
Sales Incentives - Additional I
Sales Incentives - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2022 Customer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Largest wholesale customers | 3 |
Period of return of inventory subsequent to product expiration | 12 months |
Cash discount | 2% |
Rebate and other sales deduction receivable period | 24 months |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period of return of inventory | 3 months |
Shelf life of products | 18 months |
Lot shipment period | 1 month |
Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period of return of inventory | 6 months |
Shelf life of products | 36 months |
Lot shipment period | 6 months |
Sales Incentives - Sales Deduct
Sales Incentives - Sales Deductions and Product Returns (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Accounts Receivable Reserves [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | $ (195,659) | $ (175,182) | $ (223,420) | |
Acquired | (5,165) | |||
Provision recorded for current period sales | [1] | (1,347,918) | (1,353,889) | (1,410,044) |
Credits processed/Payments | 1,358,218 | 1,333,412 | 1,458,282 | |
Ending balance | (190,524) | (195,659) | (175,182) | |
Accounts Receivable Reserves [Member] | Chargebacks [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | (119,090) | (104,552) | (109,763) | |
Provision recorded for current period sales | [1] | (1,182,744) | (1,173,810) | (1,104,946) |
Credits processed/Payments | 1,190,526 | 1,159,272 | 1,110,157 | |
Ending balance | (111,308) | (119,090) | (104,552) | |
Accounts Receivable Reserves [Member] | Rebates and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | (76,569) | (70,630) | (113,657) | |
Acquired | (5,165) | |||
Provision recorded for current period sales | [1] | (165,174) | (180,079) | (305,098) |
Credits processed/Payments | 167,692 | 174,140 | 348,125 | |
Ending balance | (79,216) | (76,569) | (70,630) | |
Current Liabilities [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | (70,796) | (102,968) | (97,315) | |
Acquired | (847) | |||
Provision recorded for current period sales | [1] | (104,561) | (63,047) | (114,795) |
Credits processed/Payments | 99,452 | 95,219 | 109,142 | |
Ending balance | (76,752) | (70,796) | (102,968) | |
Current Liabilities [Member] | Returns [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | (52,236) | (61,406) | (63,818) | |
Acquired | (493) | |||
Provision recorded for current period sales | [1] | (52,282) | (37,011) | (37,258) |
Credits processed/Payments | 48,978 | 46,181 | 39,670 | |
Ending balance | (56,033) | (52,236) | (61,406) | |
Current Liabilities [Member] | Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | [2] | (18,560) | (41,562) | (33,497) |
Acquired | (354) | |||
Provision recorded for current period sales | [1],[2] | (52,279) | (26,036) | (77,537) |
Credits processed/Payments | [2] | 50,474 | 49,038 | 69,472 |
Ending balance | [2] | $ (20,719) | $ (18,560) | $ (41,562) |
[1] Includes immaterial amounts of reversals of provisions recorded for prior years’ sales. Includes Medicaid, indirect rebates, and amounts due to customers. |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 105,873 | $ 85,956 |
Raw and packaging materials | 62,466 | 60,299 |
Work in progress | 36,367 | 28,185 |
Other | 5,733 | 5,852 |
Inventories | $ 210,439 | $ 180,292 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Reserves recorded against inventories | $ 49,889,000 | $ 32,423,000 |
Inventory pledges outstanding | $ 0 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Composition of Assets Grouped by Major Classifications (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Cost: | ||
Cost of property, plant and equipment | $ 510,682 | $ 482,716 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 310,990 | 277,208 |
Depreciated cost | 199,692 | 205,508 |
Land [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 7,628 | 7,628 |
Buildings [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 192,922 | 190,617 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 92,378 | 85,139 |
Leasehold Improvements [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 5,211 | 3,552 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 3,171 | 2,084 |
Machinery and Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 225,626 | 219,210 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 163,266 | 153,628 |
Computer Software and Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 64,164 | 46,087 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 40,474 | 25,445 |
Motor Vehicles [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 80 | 80 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 80 | 80 |
Furniture, Fixtures and Office Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 15,051 | 15,542 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | $ 11,621 | $ 10,832 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 24,077,000 | $ 21,849,000 | $ 19,161,000 |
Capitalized interest, incremental and other internal costs | 15,333,000 | 15,333,000 | |
Additional capitalized interest and other costs | 0 | 0 | |
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized development costs of computer software | 20,298,000 | 17,332,000 | |
Computer Equipment, Software and Production Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset disposals relating to depreciated production equipment | $ 906,000 | $ 124,000 |
Intangible Assets and Deferre_3
Intangible Assets and Deferred Costs - Schedule of Intangible Assets and Deferred Costs (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Cost: | ||
Product and distribution rights, cost | $ 127,766 | $ 85,359 |
Intangible assets and deferred costs, cost | 127,766 | 85,359 |
Accumulated amortization: | ||
Product and distribution rights, accumulated amortization | 80,432 | 78,593 |
Intangible assets and deferred costs, accumulated amortization | 80,432 | 78,593 |
Intangible assets and deferred costs, net | $ 47,334 | $ 6,766 |
Intangible Assets and Deferre_4
Intangible Assets and Deferred Costs - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge related to intangible assets | $ 0 | $ 0 | |
Product and Distribution Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | 1,839,000 | $ 1,831,000 | $ 2,222,000 |
Estimated amortization expense, 2023 | 7,016,000 | ||
Estimated amortization expense, 2024 | 5,627,000 | ||
Estimated amortization expense, 2025 | 5,629,000 | ||
Estimated amortization expense, 2026 | 5,628,000 | ||
Estimated amortization expense, 2027 | $ 5,620,000 | ||
Product Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period | 8 years |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepayment of land leased from ILA | $ 12,790 | $ 13,020 |
Right-of-use (ROU) assets | $ 5,422 | $ 2,729 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Intangible assets and deferred costs, net | $ 47,334 | $ 6,766 |
Severance pay fund | 1,190 | 1,211 |
Other | 157 | 397 |
Other assets | $ 66,893 | $ 24,123 |
Other Assets - Schedule of Ot_2
Other Assets - Schedule of Other Assets (Parenthetical) (Detail) | 12 Months Ended |
Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Lease agreements for an additional period | 49 years |
Lease agreements total period | 98 years |
ASU 2016-02 [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Lease period | 2026 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Receivables [Abstract] | |||
Contribution to defined retirement savings plan | $ 1,273 | $ 1,369 | $ 1,133 |
Other Assets - Pension, Retirem
Other Assets - Pension, Retirement Savings and Severance Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||
Pension, retirement savings and severance expenses | $ 6,732 | $ 8,064 | $ 6,654 |
Derivative Instruments and Fi_3
Derivative Instruments and Financial Risk Management - Summary of Rate of Inflation, Rate of Devaluation (Appreciation) Against U.S. Dollar and Rate of Exchange of U.S. Dollar (Detail) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Israel [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Rate of Inflation | 3.48% | 0.20% |
Rate of Devaluation (Appreciation) Against U.S. Dollar | (4.50%) | (6.72%) |
Rate of Exchange of U.S. Dollar | 3.18 | 3.33 |
Canada [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Rate of Inflation | 6.66% | 2.20% |
Rate of Devaluation (Appreciation) Against U.S. Dollar | (0.79%) | (10.64%) |
Rate of Exchange of U.S. Dollar | 1.25 | 1.26 |
Derivative Instruments and Fi_4
Derivative Instruments and Financial Risk Management - Additional Information (Detail) - Forward Contracts [Member] $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 USD ($) Payment ₪ / $ $ / $ | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | |
Israeli Shekel [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Forward contracts purchase amount | $ 55,250 | ||
Weighted-average forward exchange rate | ₪ / $ | 3.17 | ||
Number of installment payments | Payment | 17 | ||
(Loss) gain on derivative instruments | $ 93 | $ 190 | $ 178 |
Canadian Dollars [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Forward contracts purchase amount | $ 20,842 | ||
Weighted-average forward exchange rate | $ / $ | 1.25 | ||
Number of installment payments | Payment | 10 | ||
(Loss) gain on derivative instruments | $ 0 | $ 267 | $ (629) |
Ten Months Purchase Period [Member] | Israeli Shekel [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Forward contracts purchase amount | 3,750 | ||
Ten Months Purchase Period [Member] | Canadian Dollars [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Forward contracts purchase amount | 2,105 | ||
One Month Purchase Period [Member] | Israeli Shekel [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Forward contracts purchase amount | 3,250 | ||
Five Months Purchase Period [Member] | Israeli Shekel [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Forward contracts purchase amount | $ 2,500 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurement on a Recurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Quoted Market Prices of Identical Assets (Level1) [Member] | ||
Assets | ||
Fair value of assets | $ 957,217 | $ 975,689 |
Quoted Market Prices of Identical Assets (Level1) [Member] | Short-term Marketable Securities [Member] | ||
Assets | ||
Fair value of assets | 522,028 | 418,480 |
Quoted Market Prices of Identical Assets (Level1) [Member] | Long-term Marketable Securities [Member] | ||
Assets | ||
Fair value of assets | 422,706 | 543,623 |
Quoted Market Prices of Identical Assets (Level1) [Member] | Long-term Debt Instruments [Member] | ||
Assets | ||
Fair value of assets | 2,449 | 3,033 |
Quoted Market Prices of Identical Assets (Level1) [Member] | Long-term Equity Instruments [Member] | ||
Assets | ||
Fair value of assets | 10,034 | 10,553 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Fair value of assets | 808 | 680 |
Significant Other Observable Inputs (Level 2) [Member] | Forward Contracts [Member] | ||
Assets | ||
Fair value of assets | 808 | 680 |
Liabilities | ||
Fair value of liabilities | $ (281) | $ (591) |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Settlements and loss contingencies (1) | $ 202,036 | $ 457,674 |
Returns reserve | 56,033 | 52,236 |
Accrued expenses | 25,181 | 20,557 |
Employees and payroll accruals | 23,863 | 20,179 |
Accrued income taxes | 19,695 | 18,114 |
Medicaid and indirect rebates | 19,347 | 16,796 |
Deferred revenue | 5,788 | 7,583 |
Marketable securities | 3,869 | 10,266 |
Lease liability | $ 2,204 | $ 1,689 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | us-gaap:OtherCurrentLiabilitiesMember |
Royalties | $ 1,819 | $ 2,911 |
Suppliers of property, plant and equipment | 1,452 | 2,951 |
Due to customers | 1,372 | 1,764 |
Legal and audit fees | 1,045 | 1,197 |
Derivative instruments | 281 | 299 |
Other | (99) | 919 |
Other current liabilities | $ 363,886 | $ 615,135 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deferred credits | $ 22,643 | $ 29,227 |
Long-term incentive plan | 3,786 | |
Accrued severance pay | 1,319 | 1,315 |
Deferred revenue | 919 | 1,095 |
Other | 4,132 | 1,571 |
Other long-term liabilities | $ 32,799 | $ 33,208 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Schedule of Minimum Annual Rental Payments, under Non-Cancelable Lease Agreements (Detail) $ in Thousands | Mar. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
3/31/2023 | $ 2,238 |
3/31/2024 | 1,578 |
3/31/2025 | 1,289 |
3/31/2026 | 1,057 |
Total minimum annual rental payments, under non-cancelable lease agreements | $ 6,162 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Additional Information (Detail) $ in Thousands, ₪ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 04, 2021 USD ($) | Oct. 03, 2020 Plaintiff | Jun. 30, 2020 Defendant | Jul. 31, 2019 Company | Jun. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Mar. 28, 2022 USD ($) | Mar. 28, 2022 ILS (₪) | Sep. 30, 2021 USD ($) | Jul. 23, 2020 USD ($) | |
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Rent expenses | $ 1,684 | $ 1,951 | $ 1,875 | |||||||||
Aggregate contingent liability to the authority | 14,072 | 13,805 | ||||||||||
Royalty payments to the authority | 0 | 0 | $ 0 | |||||||||
Settlements and loss contingencies (1) | $ 202,036 | 457,674 | ||||||||||
Number of companies against class action | Company | 30 | |||||||||||
Percentage of basic rebate amount calculated for non-innovator multiple source drugs from average manufacturer price | 13% | |||||||||||
Collective Bargaining Arrangements [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Employees Committee Agreement term | Dec. 31, 2023 | |||||||||||
Employees Committee Agreement renewal term | 1 year | |||||||||||
Zantac/Ranitidine Multi-District Litigation [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Number of defendants | Defendant | 100 | |||||||||||
Number of plaintiffs | Plaintiff | 20 | |||||||||||
Deferred Prosecution Agreement [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Penalty payable to dismiss information | $ 205,700 | |||||||||||
Settlements and loss contingencies (1) | $ 213,300 | |||||||||||
Litigation settlement amount | $ 67,600 | $ 67,600 | ||||||||||
Litigation settlement subject to reduction amount | $ 8,000 | |||||||||||
Provision for antitrust matters | $ 60,000 | $ 200,000 | $ 140,000 | |||||||||
Israel Tax Authority | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Total tax liability arising from assessment | $ 12,300 | ₪ 38.5 | ||||||||||
Israel Tax Authority | Federal Tax [Member] | Earliest Tax Year [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Year under examination | 2018 | |||||||||||
Israel Tax Authority | Federal Tax [Member] | Latest Tax Year [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Year under examination | 2020 | |||||||||||
Minimum [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Percentage of royalty payments to the government of Israel | 3% | |||||||||||
Percent of the weighted-average of the average manufacturer prices | 175% | |||||||||||
Percentage of rebate amount calculated for innovator drugs from average manufacturer price | 23.10% | |||||||||||
Maximum [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Percentage of royalty payments to the government of Israel | 3.50% | |||||||||||
ASU 2016-02 [Member] | ||||||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2019 | |||||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |||||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Shareholders Equity [Line Items] | |||
Percentage of the rights to profits allocated to ordinary shares | 100% | ||
Percentage of the dissolution rights allocated to ordinary shares | 100% | ||
Unrealized (loss) from hedge accounting | $ (157,220) | $ (156,905) | |
Unrealized gain (loss) from available for sale securities | (11,745) | 5,284 | |
Unrealized gain (losses) on marketable securities | $ 565 | $ 2,421 | $ 420 |
1999 Stock Incentive Plan [Member] | |||
Shareholders Equity [Line Items] | |||
Number of shares outstanding | 0 | 0 | 0 |
Number of options available for future grants | 0 | 0 | 0 |
Ordinary Shares [Member] | |||
Shareholders Equity [Line Items] | |||
Description of voting power allocated to the founders' shares | Two-thirds of the voting power of all of the Company’s shares is allocated to the ordinary shares. | ||
Founders' Shares [Member] | |||
Shareholders Equity [Line Items] | |||
Description of voting power allocated to the founders' shares | One-third of the voting power of all of the Company’s shares is allocated to the founders’ shares. |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Net (Loss) Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Net income (loss) attributable to Taro | $ 58,266 | $ (386,653) | $ 244,241 |
Basic and diluted weighted average number of common shares outstanding | 37,641,087 | 38,209,726 | 38,460,056 |
Basic and diluted EPS | $ 1.55 | $ (10.12) | $ 6.35 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Nov. 02, 2021 | Apr. 01, 2017 | Jan. 01, 2017 USD ($) Employee | Jan. 01, 2017 ILS (₪) Employee | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2022 USD ($) Enterprise | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) Plan | Mar. 31, 2019 USD ($) Plan | Mar. 28, 2022 USD ($) | Mar. 28, 2022 ILS (₪) | |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Applicable corporate income tax rate | 23% | 23% | 23% | |||||||||
Number of active plans | Plan | 2 | 2 | ||||||||||
Dividends subject to withholding tax rate | 15% | |||||||||||
Uniform tax rate | 21% | 35% | 23% | 23% | 23% | |||||||
Venture capital investment previously made by the company | ₪ | ₪ 8,000,000 | |||||||||||
Three years average growth in sales | $ 3,000,000 | ₪ 10,000,000 | ||||||||||
Three years average growth in workforce | Employee | 50 | 50 | ||||||||||
Tax benefits relating to research and development tax credits | $ 686,000 | $ 649,000 | $ 664,000 | |||||||||
CARES act of 2020 operating loss carry-back period | 5 years | |||||||||||
Deferred income taxes of undistributed earnings | $ 1,300,000,000 | |||||||||||
Amount of interest and linkage to consumer price index recognized on the consolidated statement of operations | 3,859,000 | 1,236,000 | 1,224,000 | |||||||||
Amount of interest and linkage to consumer price index recognized on the consolidated balance sheets | 7,643,000 | 3,783,000 | ||||||||||
Amount of unrecognized tax benefits | 34,578,000 | $ 26,921,000 | $ 25,258,000 | $ 28,188,000 | ||||||||
Canadian Operations [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Carryforward losses | 104,714,000 | |||||||||||
U.S. Operations [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Carryforward losses | $ 16,119,000 | |||||||||||
Israel Tax Authority [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Total tax liability arising from assessment | $ 12,300,000 | ₪ 38,500,000 | ||||||||||
Industrial Company [Member] | Israel Designated as Development Zone A [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Uniform tax rate | 7.50% | 9% | ||||||||||
Industrial Company [Member] | Elsewhere in Israel [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Uniform tax rate | 16% | |||||||||||
Special Preferred Enterprise [Member] | Israel Designated as Development Zone A [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Uniform tax rate | 5% | |||||||||||
Special Preferred Enterprise [Member] | Elsewhere in Israel [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Uniform tax rate | 8% | |||||||||||
Preferred Technological Enterprises [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Three years average growth in sales or workforce, percentage | 25% | 25% | ||||||||||
Preferred Technological Enterprises [Member] | Israel Designated as Development Zone A [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Percentage of corporate tax rate | 7.50% | 7.50% | ||||||||||
Preferred Technological Enterprises [Member] | Elsewhere in Israel [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Percentage of corporate tax rate | 12% | 12% | ||||||||||
Special Preferred Technological Enterprise [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Dividends subject to withholding tax rate | 4% | 4% | ||||||||||
Percentage of corporate tax rate | 6% | 6% | ||||||||||
Dividend withholding tax rate for other than foreign parent, percentage | 20% | 20% | ||||||||||
Alternative Benefits Programs (Plan 3-4 and 5) [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Number of approved enterprises | Enterprise | 1 | |||||||||||
Plan 6 [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Number of benefited enterprise | Enterprise | 1 | |||||||||||
Corporate tax exemption period | 2 years | |||||||||||
Additional corporate tax exemption period | 8 years | |||||||||||
Plan Two [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Corporate tax exemption period | 2 years | |||||||||||
Additional corporate tax exemption period | 8 years | |||||||||||
Additional income tax exemption period for high level of investments | 5 years | |||||||||||
Israel [Member] | Capital Losses Carryforward [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Carryforward losses | $ 233,665,000 | |||||||||||
Federal Tax [Member] | Israel Tax Authority [Member] | Earliest Tax Year [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Year under examination | 2018 | |||||||||||
Federal Tax [Member] | Israel Tax Authority [Member] | Latest Tax Year [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Year under examination | 2020 | |||||||||||
Minimum [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Reduction in tax rates | 10% | |||||||||||
Minimum [Member] | Economic Efficiency Law [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Clawback tax rate | 10% | |||||||||||
Discount percentage on applicable capital income tax (CIT) | 6% | |||||||||||
Minimum [Member] | Preferred Technological Enterprises [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Average R&D expenses percentage on revenue | 7% | 7% | ||||||||||
Amount of average R&D expenses on revenue | $ 23,000,000 | ₪ 75,000,000 | ||||||||||
Percentage of overall workforce allocated to R&D | 20% | 20% | ||||||||||
Number of employees, allocated to R&D | Employee | 200 | 200 | ||||||||||
Venture capital investment previously made by the company | $ 2,400,000 | |||||||||||
Minimum [Member] | Special Preferred Technological Enterprise [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Annual consolidated revenues | $ 3,000,000,000 | ₪ 10,000,000,000 | ||||||||||
Percentage of foreign parent company holding shares for withholding tax dividend distributions | 90% | 90% | ||||||||||
Minimum [Member] | Plan 6 [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Reduction in tax rates | 10% | |||||||||||
Minimum [Member] | Plan Two [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Reduction in tax rates | 10% | |||||||||||
Minimum [Member] | Foreign (North America, the Cayman Islands, Ireland and the U.K.) [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Foreign ownership percentage | 90% | |||||||||||
Maximum [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Reduction in tax rates | 25% | |||||||||||
Dividends subject to withholding tax rate | 20% | |||||||||||
Designated Investment Requirement Period | 5 years | |||||||||||
Maximum [Member] | Economic Efficiency Law [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Clawback tax rate | 25% | |||||||||||
Discount percentage on applicable capital income tax (CIT) | 60% | |||||||||||
Maximum [Member] | Plan 6 [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Reduction in tax rates | 25% | |||||||||||
Maximum [Member] | Plan Two [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Reduction in tax rates | 25% | |||||||||||
Maximum [Member] | Foreign (North America, the Cayman Islands, Ireland and the U.K.) [Member] | ||||||||||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||||||||||
Foreign ownership percentage | 49% |
Income Taxes - (Loss) Income Be
Income Taxes - (Loss) Income Before Income Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Income (Loss) before income taxes | $ 77,858 | $ (391,073) | $ 298,035 |
Domestic (Israel) [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Income (Loss) before income taxes | (39,781) | 14,338 | 99,182 |
Foreign (North America, the Cayman Islands, Ireland and the U.K.) [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Income (Loss) before income taxes | $ 117,639 | $ (405,411) | $ 198,853 |
Income Taxes - Components of Ta
Income Taxes - Components of Taxes on Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ (112) | $ 5,234 | $ 55,895 |
Prior years' benefits | (3,495) | (3,462) | (9,995) |
Deferred income taxes | 23,199 | 7,895 | 7,585 |
Tax expense | 19,592 | 9,667 | 53,485 |
Tax expense alternative | |||
Domestic (Israel) | 8,658 | 7,459 | 4,177 |
Foreign (North America) | 10,934 | 2,208 | 49,308 |
Tax expense | $ 19,592 | $ 9,667 | $ 53,485 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Rate of Parent Company to Effective Consolidated Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Statutory tax rate (in Israel) | 21% | 35% | 23% | 23% | 23% |
(Decrease) increase in effective tax rate due to: | |||||
Utilization of net operating losses | (8.50%) | 2.60% | 0% | ||
FX on tax payments | (2.00%) | 0.80% | 0.40% | ||
Write-down and amortization of TNA transferred IP | 0.20% | 0.10% | 0% | ||
Taxable capital gain | (0.00%) | 0.10% | 0% | ||
Non-deductible expenses (unrecognized income) | (0.40%) | (0.10%) | 0% | ||
Change in deferred taxes due to change in tax rate | (4.20%) | (0.30%) | 0% | ||
Taxes from prior years | 0.90% | (0.50%) | (0.80%) | ||
Uncertain tax positions, net | 14.20% | (0.90%) | (0.60%) | ||
Change in valuation allowance on deferred tax asset | (3.80%) | (1.20%) | 0% | ||
Different tax rates applicable to non-Israeli subsidiaries | 2.50% | (2.50%) | 1.30% | ||
Non-deductible portion of settlements | 0% | (23.60%) | 0% | ||
Net operating loss carryback | 0% | 0% | (1.30%) | ||
Tax benefits from reduced tax rates under benefit programs and other | 3.30% | 0% | (4.10%) | ||
Effective consolidated tax rate | 25.20% | (2.50%) | 17.90% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Statutory Tax Rate of Parent Company to Effective Consolidated Tax Rate (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
CARES act of 2020 operating loss carry-back period | 5 years | ||||
Uniform tax rate | 21% | 35% | 23% | 23% | 23% |
Income Taxes - Components of Cu
Income Taxes - Components of Current Taxes (Detail) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 25.20% | (2.50%) | 17.90% |
Israel [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 23% | 23% | 23% |
U.S. [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 21% | 21% | 21.20% |
Canada [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 25% | 25% | 25% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets: | ||
Operating loss carryforward | $ 37,479 | $ 35,404 |
Capital loss carryforward | 17,568 | 17,705 |
Deferred revenue | 10,564 | 17,169 |
Property, plant, and equipment | 2,549 | 1,438 |
Intangible assets | 31,969 | 34,836 |
Accrued expenses | 46,943 | 60,862 |
Bad debt allowance | 152 | 212 |
Hedge accounting | 23 | |
Marketable securities | 1,348 | |
Other, net | 5,517 | 10,077 |
Total deferred tax assets | 154,112 | 177,704 |
Valuation allowance for deferred tax assets | (22,175) | (27,857) |
Net deferred tax assets | 131,937 | 149,847 |
Deferred tax liabilities: | ||
Property, plant, and equipment | (6,770) | (8,991) |
Marketable securities | (541) | |
Hedge accounting | (48) | (17) |
Other, net | (238) | (198) |
Total deferred tax liabilities | (7,055) | (9,747) |
Net deferred tax assets | 124,882 | 140,100 |
Net deferred tax assets alternative | ||
Domestic (Israel) | 4,499 | 4,888 |
Foreign (North America) | 120,383 | 135,212 |
Net deferred tax assets | $ 124,882 | $ 140,100 |
Income Taxes - Schedule of De_2
Income Taxes - Schedule of Deferred Income Taxes Presented on the Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Among non-current assets | $ 124,882 | $ 142,007 |
Among long-term liabilities | (1,907) | |
Net deferred tax assets | $ 124,882 | $ 140,100 |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax exposure at beginning of year | $ 26,921 | $ 25,258 | $ 28,188 |
Increases as a result of positions taken in prior period | 1,389 | 769 | 382 |
Decreases as a result of positions taken in prior period | (5,025) | (7,913) | |
Increases as a result of positions taken in current period | 6,268 | 5,919 | 4,601 |
Unrecognized tax exposure at end of year | $ 34,578 | $ 26,921 | $ 25,258 |
Selected Statements of Income_3
Selected Statements of Income Data - Schedule of Selected Statements of Income Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Sales, net | $ 561,347 | $ 548,970 | $ 644,769 |
Selling, marketing, general and administrative expenses: | |||
Selling and marketing | 48,340 | 32,861 | 31,754 |
Advertising | 8,280 | 5,681 | 4,902 |
General and administrative | 57,057 | 52,813 | 56,757 |
Settlements and loss contingencies | 61,446 | 558,924 | |
Total selling, marketing, general and administrative expenses | 175,123 | 650,279 | 93,413 |
Financial (income) expenses: | |||
Interest and exchange differences on long-term liabilities | 1,653 | 1,363 | 725 |
Income in respect of deposits | (1,331) | (2,432) | (11,714) |
Interest from marketable securities | (8,509) | (19,105) | (22,655) |
Foreign currency transaction (loss) gain | (1,985) | 365 | (14,838) |
Total financial (income) expenses | (10,172) | (19,809) | (48,482) |
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 376,677 | 383,829 | 495,673 |
Canada [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 130,066 | 110,167 | 97,997 |
Israel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | 47,915 | 46,574 | 42,817 |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales, net | $ 6,689 | $ 8,400 | $ 8,282 |
Selected Statements of Income_4
Selected Statements of Income Data - Schedule of Selected Statements of Income Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | |||
Provision (recovery) of doubtful accounts | $ 15,213 | $ (1,761) | $ 2,382 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Mar. 31, 2022 Segment Customer | Mar. 31, 2021 Customer | Mar. 31, 2020 Customer | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Number of major customers | Customer | 2 | 2 | 2 |
Customer One [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 10.10% | 12.60% | 13% |
Customer Two [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 8.90% | 10.50% | 11.50% |
Segment Information - Schedule
Segment Information - Schedule of Geographic Area Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales, net | $ 561,347 | $ 548,970 | $ 644,769 |
Long-lived assets | 258,846 | 219,465 | 225,564 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales, net | 47,915 | 46,574 | 42,817 |
Long-lived assets | 117,913 | 122,983 | 123,679 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales, net | 130,066 | 110,167 | 97,997 |
Long-lived assets | 101,387 | 61,027 | 63,506 |
U.S.A. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales, net | 376,677 | 383,829 | 495,673 |
Long-lived assets | 31,191 | 35,455 | 38,379 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales, net | $ 6,689 | $ 8,400 | $ 8,282 |
Segment Information - Schedul_2
Segment Information - Schedule of Sales by Therapeutic Category (Detail) - Sales Revenue, Net [Member] - Product Concentration Risk [Member] | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 100% | 100% | 100% |
Dermatological and Topical [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 60% | 58% | 63% |
Neuropsychiatric [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 13% | 16% | 17% |
Cardiovascular [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 6% | 7% | 6% |
Anti-Inflammatory [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 3% | 3% | 3% |
Other [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 18% | 16% | 11% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2022 | |
Sun Pharmaceutical Industries Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Voting interest | 85.70% |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 11,820 | $ 7,191 | |
Alchemee Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, date of acquisition | Feb. 28, 2022 | ||
Percentage of ownership acquired | 100% | ||
Aggregate purchase price | $ 100,000 | ||
Working capital adjustment | 1,000 | ||
Purchase price | 99,000 | ||
Business acquisition, transaction costs | 1,000 | ||
Goodwill | $ 10,000 |
Business Combination - Schedule
Business Combination - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Feb. 28, 2022 | Mar. 31, 2021 |
Accounts receivable and other: | |||
Goodwill | $ 11,820 | $ 7,191 | |
Alchemee Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 8,000 | ||
Accounts receivable and other: | |||
Trade, net | 28,000 | ||
Other receivables and prepaid expenses | 4,000 | ||
Inventories | 19,000 | ||
Property, plant and equipment, net | 1,000 | ||
Deferred tax assets | 6,000 | ||
Right-to-use assets | 3,000 | ||
Goodwill | 10,000 | ||
Total assets acquired | 131,000 | ||
Accounts payable: | |||
Trade payables | 21,000 | ||
Other current liabilities | 6,000 | ||
Right-of-use liability | 3,000 | ||
Other liabilities | 1,000 | ||
Total liabilities assumed | 31,000 | ||
Total consideration transferred | 100,000 | ||
Alchemee Acquisition [Member] | Software [Member] | |||
Accounts receivable and other: | |||
Intangible assets | 8,000 | ||
Alchemee Acquisition [Member] | Brand [Member] | |||
Accounts receivable and other: | |||
Intangible assets | $ 44,000 |
Business Combination - Schedu_2
Business Combination - Schedule of Estimated Useful Lives and Fair Values of Identifiable Intangible Assets (Detail) - Alchemee Acquisition [Member] - Brand [Member] $ in Millions | Feb. 28, 2022 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Life - Years | 15 years |
Estimated Fair Values | $ 44 |
Business Combination - Schedu_3
Business Combination - Schedule of Unaudited Pro Forma Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenues | $ 736,875 | $ 738,211 |
Net earnings (loss) | $ 41,118 | $ (398,799) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | Jul. 22, 2022 Application | Jun. 08, 2022 USD ($) |
Subsequent Event [Line Items] | ||
Additional abbreviated new drug application, description | Company received one approval from the FDA | |
Number of ANDAs application awaiting for FDA approval | Application | 19 | |
Direct Purchaser Plaintiff [Member] | ||
Subsequent Event [Line Items] | ||
Payments for settlements | $ 67.6 | |
Litigation settlement subject to reduction amount | $ 8 |