Document and Entity Information
Document and Entity Information - Mar. 31, 2015 - shares | Total |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | TARO |
Entity Registrant Name | TARO PHARMACEUTICAL INDUSTRIES LTD |
Entity Central Index Key | 906,338 |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 42,833,273 |
Founders' Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,600 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 481,641 | $ 209,967 |
Short-term bank deposits | 434,899 | 418,946 |
Restricted short-term bank deposits | 199 | 227 |
Marketable securities | 3,458 | 3,255 |
Accounts receivable and other: | ||
Trade, net | 222,427 | 138,772 |
Other receivables and prepaid expenses | 250,911 | 162,392 |
Inventories | 120,272 | 117,639 |
Long-term assets held for sale, net | 73 | |
TOTAL CURRENT ASSETS | 1,513,807 | 1,051,271 |
LONG-TERM RECEIVABLES AND OTHER ASSETS | 46,330 | 52,894 |
PROPERTY, PLANT AND EQUIPMENT, NET | 153,045 | 151,416 |
GOODWILL | 7,206 | 7,248 |
INTANGIBLE ASSETS AND DEFERRED COSTS, NET | 13,204 | 16,642 |
DEFERRED INCOME TAXES | 4,153 | 4,905 |
TOTAL ASSETS | 1,737,745 | 1,284,376 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 912 | 11,974 |
Accounts payable: | ||
Trade payables | 19,480 | 20,795 |
Other current liabilities | 289,613 | 220,535 |
TOTAL CURRENT LIABILITIES | 310,005 | 253,304 |
LONG-TERM LIABILITIES: | ||
Long-term debt, net of current maturities | 4,976 | 5,888 |
Deferred income taxes | 1,901 | 1,739 |
Other long-term liabilities | 3,480 | 2,852 |
TOTAL LONG-TERM LIABILITIES | $ 10,357 | $ 10,479 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
TOTAL LIABILITIES | $ 320,362 | $ 263,783 |
Taro shareholders' equity: | ||
Ordinary shares of NIS 0.0001 par value: Authorized at March 31, 2015 and March 31, 2014: 200,000,000 shares; Issued at March 31, 2015 and March 31, 2014: 45,116,262 and 45,115,262 shares, respectively Outstanding at March 31, 2015 and March 31, 2014: 42,833,273 and 42,832,273 shares, respectively | 679 | 679 |
Founders' shares of NIS 0.00001 par value: Authorized, issued and outstanding at March 31, 2015 and March 31, 2014: 2,600 shares | 1 | 1 |
Additional paid-in capital | 262,445 | 262,419 |
Accumulated other comprehensive income, net of taxes | (110,966) | (22,896) |
Treasury Stock at March 31, 2015 and March 31, 2014: 2,282,989 shares | (194,328) | (194,328) |
Accumulated earnings | 1,453,889 | 969,632 |
Taro shareholders' equity | 1,411,720 | 1,015,507 |
Non-controlling interest | 5,663 | 5,086 |
TOTAL SHAREHOLDERS' EQUITY | 1,417,383 | 1,020,593 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,737,745 | $ 1,284,376 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Mar. 31, 2015 | Mar. 31, 2014 |
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 | 45,115,262 |
Ordinary shares, shares outstanding | 42,833,273 | 42,832,273 |
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 | 2,282,989 | 2,282,989 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement [Abstract] | |||
Sales, net | $ 862,944 | $ 759,285 | $ 670,954 |
Cost of sales | 186,359 | 179,279 | 176,128 |
Gross profit | 676,585 | 580,006 | 494,826 |
Operating expenses: | |||
Research and development | 65,510 | 55,430 | 46,508 |
Selling, marketing, general and administrative | 87,644 | 91,733 | 86,438 |
Settlements and loss contingencies | (4,200) | 2,590 | 33,300 |
Total operating expenses | 148,954 | 149,753 | 166,246 |
Operating income | 527,631 | 430,253 | 328,580 |
Financial income, net | (51,311) | (12,285) | (3,931) |
Other gain, net | 2,738 | 1,369 | 3,352 |
Income before income taxes | 581,680 | 443,907 | 335,863 |
Tax expense | 96,059 | 82,729 | 67,799 |
Income from continuing operations | 485,621 | 361,178 | 268,064 |
Net loss from discontinued operations attributable to Taro | (787) | (319) | (1,194) |
Net income | 484,834 | 360,859 | 266,870 |
Net income attributable to non-controlling interest | 577 | 472 | 664 |
Net income attributable to Taro | 484,257 | 360,387 | 266,206 |
Net income from continuing operations attributable to Taro | 485,044 | 360,706 | 267,400 |
Net loss from discontinued operations attributable to Taro | (787) | (319) | (1,194) |
Net income attributable to Taro | $ 484,257 | $ 360,387 | $ 266,206 |
Net income per ordinary share from continuing operations attributable to Taro: | |||
Basic | $ 11.32 | $ 8.15 | $ 5.99 |
Diluted | 11.32 | 8.15 | 5.98 |
Net loss per ordinary share from discontinued operations attributable to Taro: | |||
Basic | (0.01) | (0.01) | (0.03) |
Diluted | (0.01) | (0.01) | (0.03) |
Net income per ordinary share attributable to Taro: | |||
Basic | 11.31 | 8.14 | 5.96 |
Diluted | $ 11.31 | $ 8.14 | $ 5.95 |
Weighted-average number of ordinary shares used to compute net income per share: | |||
Basic | 42,833,533 | 44,276,003 | 44,677,603 |
Diluted | 42,833,750 | 44,279,124 | 44,715,111 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Taro | $ 484,257 | $ 360,387 | $ 266,206 |
Other comprehensive loss | |||
Foreign currency translation adjustments | (88,153) | (39,590) | (6,340) |
Unrealized gain (loss) from marketable securities | 83 | (49) | 49 |
Total other comprehensive loss attributable to Taro | (88,070) | (39,639) | (6,291) |
Total comprehensive income attributable to Taro | $ 396,187 | $ 320,748 | $ 259,915 |
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 Income (Loss) [Member] | Treasury Shares [Member] | Retained Earnings [Member] | Total Taro Shareholders' Equity [Member] | Non-controlling Interest [Member] |
Balance at Mar. 31, 2012 | $ 622,958 | $ 680 | $ 253,584 | $ 23,034 | $ (1,329) | $ 343,039 | $ 619,008 | $ 3,950 |
Balance, shares at Mar. 31, 2012 | 44,477,000 | |||||||
Exercise of options | $ 7,416 | 7,416 | 7,416 | |||||
Exercise of options, shares | 291,555 | 291,000 | ||||||
Share-based compensation | $ 8 | 8 | 8 | |||||
Comprehensive income (loss), net of tax | (6,291) | (6,291) | (6,291) | |||||
Net income | 266,870 | 266,206 | 266,206 | 664 | ||||
Balance at Mar. 31, 2013 | 890,961 | $ 680 | 261,008 | 16,743 | (1,329) | 609,245 | 886,347 | 4,614 |
Balance, shares at Mar. 31, 2013 | 44,768,000 | |||||||
Exercise of options | $ 1,411 | 1,411 | 1,411 | |||||
Exercise of options, shares | 23,700 | 24,000 | ||||||
Purchase of treasury stock | $ (192,999) | (192,999) | (192,999) | |||||
Purchase of treasury stock, shares | (1,960,000) | |||||||
Comprehensive income (loss), net of tax | (39,639) | (39,639) | (39,639) | |||||
Net income | 360,859 | 360,387 | 360,387 | 472 | ||||
Balance at Mar. 31, 2014 | 1,020,593 | $ 680 | 262,419 | (22,896) | (194,328) | 969,632 | 1,015,507 | 5,086 |
Balance, shares at Mar. 31, 2014 | 42,832,000 | |||||||
Exercise of options | $ 26 | 26 | 26 | |||||
Exercise of options, shares | 1,000 | 1,000 | ||||||
Comprehensive income (loss), net of tax | $ (88,070) | (88,070) | (88,070) | |||||
Net income | 484,834 | 484,257 | 484,257 | 577 | ||||
Balance at Mar. 31, 2015 | $ 1,417,383 | $ 680 | $ 262,445 | $ (110,966) | $ (194,328) | $ 1,453,889 | $ 1,411,720 | $ 5,663 |
Balance, shares at Mar. 31, 2015 | 42,833,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 484,834 | $ 360,859 | $ 266,870 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,798 | 16,567 | 17,765 |
Change in deferred charges and other assets | 2 | 10 | 26 |
Impairment of long-lived assets | 90 | 47 | 969 |
Share-based compensation expense | 8 | ||
Accrued severance pay and other long-term liabilities, net | 54 | (230) | 55 |
Loss on sale of long-lived assets | 22 | 44 | 13 |
Realized gain on sale of marketable securities | (231) | (23) | (57) |
Change in derivative instruments, net | 5,483 | 4,181 | 1,550 |
Effect of exchange differences on inter-company balances | (18,167) | (11,670) | (1,510) |
(Decrease) increase in long-term debt due to currency fluctuations | (1,030) | 1,137 | 440 |
Deferred income taxes, net | (70,387) | (23,708) | (18,822) |
Increase in trade receivables, net | (85,277) | (19,755) | (8,912) |
Increase in other receivables, prepaid expenses and other | (3,508) | (1,557) | (1,339) |
Increase in inventories, net | (7,027) | (10,697) | (630) |
Decrease in long-term receivables, prepaid expenses and other | 242 | 64 | 301 |
Decrease (increase) in income tax receivables | 17,623 | (17,930) | |
(Decrease) increase in trade payables | (542) | 1,804 | (3,483) |
Increase in other accounts payable and accrued expenses | 18,731 | 50,686 | 43,500 |
Increase (decrease) in income tax payables | 50,078 | 7,815 | (48,094) |
Net cash provided by operating activities | 406,788 | 357,644 | 248,650 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (19,997) | (21,249) | (9,466) |
Investment in other intangible assets | (158) | (4,555) | (777) |
Investment in other assets | (31,050) | ||
Investment in short-term bank deposits | (43,344) | (120,648) | (241,671) |
Proceeds from restricted bank deposits | 28 | 7,203 | 8,224 |
Proceeds from (investment in) long-term deposits and other assets | 2,112 | (33,956) | (5,000) |
Proceeds from (investment in) marketable securities, net | 111 | (100) | 4,758 |
Proceeds from sale of long-lived assets | 217 | 8 | 1 |
Net cash used in investing activities | (92,081) | (173,297) | (243,931) |
Cash flows from financing activities: | |||
Excess tax benefits from share-based payment arrangements | 149 | 838 | |
Proceeds from issuance of shares, net | 26 | 1,262 | 6,584 |
Purchase of treasury stock | (192,999) | ||
Repayment of long-term debt | (10,944) | (11,874) | (10,748) |
Net cash used in financing activities | (10,918) | (203,462) | (3,326) |
Effect of exchange rate changes on cash and cash equivalents | (32,115) | (8,202) | (2,375) |
Increase (decrease) in cash and cash equivalents | 271,674 | (27,317) | (982) |
Cash and cash equivalents at the beginning of the period | 209,967 | 237,284 | 238,266 |
Cash and cash equivalents at the end of the period | 481,641 | 209,967 | 237,284 |
Cash paid during the year for: | |||
Interest | 1,014 | 1,695 | 2,230 |
Income taxes | 101,651 | 117,409 | 133,612 |
Non-cash investing and financing transactions: | |||
Purchase of property, plant and equipment on credit | $ 645 | $ 1,714 | $ 1,573 |
General
General | 12 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | NOTE 1: — GENERAL a. 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.” Prior to the move to the NYSE, the Company’s ordinary shares were quoted on the Pink Sheets Electronic Quotation Service (“Pink Sheets”) under the symbol “TAROF.” 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 Pharmaceuticals North America, Inc. and Taro Pharmaceuticals U.S.A., Inc. (“Taro U.S.A.”). Taro Research Institute Ltd. in Israel provided research and development services to the Group, which, as of its merger with and into Taro, are now performed by Taro. Taro International Ltd. in Israel and Taro’s subsidiary in the United Kingdom are 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 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. (Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) (“Sun Pharma” and together with its affiliates, “Sun”), the Company’s majority shareholder, owns, or controls, 29,497,813, or 68.9%, of the Company’s ordinary shares, and with the Company’s founders’ shares, 79.2% of the vote attributable to the share equity of the Company. In December 2013, the Company completed a modified “Dutch auction” tender offer whereby, an aggregate of 1,959,514 ordinary shares were repurchased at the final purchase price of $97.50 per share, for an aggregate purchase price of approximately $193.0 million (including fees and expenses relating to the tender offer). These shares are classified as treasury stock. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2: — SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to U.S. GAAP. a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements and assumptions. The Company’s 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 Company’s most critical estimates are used in its determination of its sales incentives reserves (see Note 5), inventory reserves, income taxes, fixed assets, intangible assets, derivative instruments and contingencies. b. Financial statements in U.S. dollars: A majority of the revenue of the Company and certain of its subsidiaries (exclusive of its Canadian, Irish, and U.K. subsidiaries – see below) is generated in U.S. dollars (“dollars”). In addition, a substantial portion of the costs of the Company and these subsidiaries is incurred in dollars. The Company’s management believes that dollars 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 dollar, requiring re-measurement from the local currency into dollars for each of these entities. All exchange gains and losses resulting from the re-measurement are reflected in the Consolidated Statement of Operations as financial income or expense, as appropriate. The functional currency of the Company’s Canadian, Irish, and U.K. subsidiaries are the Canadian dollar, the Euro, and the British Pound, respectively. Accordingly, the financial statements of the Canadian, Irish, and U.K. subsidiaries have been translated into dollars. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Amounts recorded in the Consolidated Statements of Operations have been translated using the average exchange rate prevailing during the year. The resulting translation adjustments are reported as a component of shareholders’ equity under accumulated other comprehensive income. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Inter-company transactions and balances have been eliminated in consolidation and non-controlling interest is included in shareholders’ equity. Sun, through its wholly owned subsidiary, Taro Development Corporation (“TDC”), owns 3.125% of the shares that have economic rights and has 50% of the voting rights in Taro U.S.A.; with the Company owning the remaining shares and voting rights. In 1993, TDC signed an agreement with the Company to vote all of its shares in Taro U.S.A. in all elections of directors of Taro U.S.A. as the Company shall instruct. In May 2011, TDC renewed its commitment to the Company. TDC may terminate the agreement upon one year written notice and no such notice of termination has been provided. TDC is a minority shareholder in the Company by way of its ownership of Taro U.S.A. shares that have economic rights. d. Cash and cash equivalents: Cash equivalents are short-term, highly-liquid investments that are readily convertible into cash with original maturities of three months or less at the date acquired. 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 values and are invested at an average interest rate of 0.93% and 1.21% for March 31, 2015 and 2014, respectively. e. Marketable securities: Marketable securities are comprised primarily of bonds issued by government municipalities. These marketable securities covered by FASB ASC Section 320-10-25, “ Investments: Debt and Equity Securities – Overall – Recognition,” 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. During the years ended March 31, 2015, 2014 and 2013, the Company did not own or sell any marketable securities previously impaired. f. Allowance for doubtful accounts: The allowance for doubtful accounts is calculated primarily with respect to specific balances, for which, in the opinion of the Company’s management, collection of such balances is doubtful. The allowance, in the opinion of the Company’s management, is sufficient to cover probable uncollectible balances. See Note 4. g. 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 – average cost basis. Finished goods and work in progress – average production costs including materials, labor and direct and indirect manufacturing expenses. Purchased products for commercial purposes – average cost basis. h. 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. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting, or according to the expected reversal dates of the specific temporary differences where appropriate. i. 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: % Buildings 2.5 - 10 Machinery and equipment 5 - 20 (mainly 10) Motor vehicles 15 - 20 Furniture, fixtures, office equipment and computer equipment 6 - 33 (mainly 20) Leasehold improvements are depreciated using the straight-line method over the shorter of their useful lives or the terms of the leases (generally 5-10 years). (3) The Group accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC Subtopic 350-40, “ Intangibles: Goodwill and Other – Internal-Use Software.” j. Lease of land from Israel Land Administration: The Company leases several parcels of land from the Israel Land Administration (“ILA”), which is accounted for pursuant to FASB ASC Subtopic 840-20, “ Leases – Operating Leases.” k. Goodwill: The Company follows the provisions of FASB ASC Subtopic 350-20, “ Intangibles: Goodwill and Other – Goodwill.” The Company operates in one operating segment, comprising its only reporting unit. The goodwill impairment tests are conducted in two steps. In the first step, the Company determines the fair value of the reporting unit. If the net book value of the reporting unit exceeds its fair value, the Company would then perform the second step of the impairment test which requires allocation of the reporting unit’s fair value of all of its assets and liabilities in a manner similar to an acquisition cost allocation, with any residual fair value being allocated to goodwill. The implied fair value of the goodwill is then compared to the carrying value to determine impairment, if any. The Company determined the fair value of a reporting unit using the market approach which is based on the market capitalization by using the share price of the Company in the NYSE and an appropriate control premium. As of March 31, 2015, the market capitalization of the Company was significantly higher than the net book value of the reporting unit and therefore there was no need to continue to step two. Taro determined the goodwill was not subject to impairment as of March 31, 2015 and 2014. l. 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. m. Tax contingencies: FASB ASC 740, “ Income Taxes, 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 not considered to have an indefinite useful life and are amortized over their useful life of a weighted-average amortization period of 14 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, in accordance with FASB ASC Topic 350, “ Intangibles-Goodwill and Other Debt issuance costs in respect to long-term debentures from institutional investors and bondholders are deferred and amortized under the effective interest method over the term of the debentures. Long-lived assets: The Group’s long-lived assets, excluding goodwill, are reviewed for impairment in accordance with FASB ASC Topic 360, “ Property, Plant and Equipment, o. Comprehensive income: The Company accounts for comprehensive income in accordance with FASB ASC Topic No. 220, “ Comprehensive Income. Comprehensive Income (Topic 220): Presentation of Comprehensive Income,” Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,” 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. From time to time the Company may reissue treasury shares upon exercise of options. When treasury stock is reissued, the Company accounts for their issuance in accordance with FASB ASC Subtopic 505-30, “ Equity – Treasury Stock,” 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 generally recognizes revenue from product sales when title and risk of loss have transferred to its customers and when the criteria in FASB ASC Subtopic 605-15, “Revenue Recognition – Products,” 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, cash discounts 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 beyond the Company’s control, and historical data. Product returns result from agreements allowing the Company’s customers to return unsold inventory that is expired or close to expiration. 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. See Notes 5 and 12. 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 ASC Subtopic 605-50, “ Revenue Recognition – Customer Payments and Incentives 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 assets on our balance sheet and expensed as provided. s. Royalty-bearing grants: Royalty-bearing grants from the government of Israel through the Office of the Chief Scientist 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 not earn any grants during the year ended March 31, 2015, 2014 and 2013. t. Advertising expenses: The Group expenses advertising costs as incurred. Product samples are recorded within prepaid expense on the consolidated balance sheet and recorded within advertising expenses when provided to potential customers. Advertising expenses were $8,370, $9,787, and $7,213 for the years ended March 31, 2015, 2014 and 2013, respectively. u. Income taxes: Income taxes are accounted for in accordance with FASB ASC Topic 740, “ Income Taxes v. 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. w. Basic and diluted net income per ordinary share attributable to Taro: Basic net income per ordinary share is calculated based on the weighted-average number of ordinary shares outstanding during each year. Diluted net 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), in accordance with FASB ASC Topic 260, “ Earnings per Share.” x. Freight and distribution costs: In accordance with FASB ASC Subtopic 605-45, “ Revenue Recognition – Principal Agent Considerations,” y. Accounting for share-based compensation: The Company recognizes compensation expense in accordance with FASB ASC Topic 718, “ Compensation: Stock Compensation,” z. Concentrations of credit risk: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits and trade receivables. Cash and cash equivalents and bank deposits are principally invested in major banks in Israel, the United States, Europe, Canada and the Cayman Islands. Such deposits in the United States 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 bank deposits are financially sound and that 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 United States, Canada, Europe and Israel. At March 31, 2015, three different customers represented approximately 25.3%, 24.9% and 16.0% 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. aa. Fair value of financial instruments: The carrying amounts of cash and cash equivalents, short-term bank deposits, trade and other receivables and trade and other payables approximate their fair value, due to the short-term maturities of these instruments. The carrying amount of long-term bank deposits approximates their fair value because such deposits bear market interest rates. The carrying amounts of the Group’s borrowing arrangements under its debt agreements approximate their fair value since the loans bear interest at rates that approximate the Group’s incremental borrowing rates for similar types of 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 U.S. dollars at the current spot foreign currency exchange rate. bb. Accounting for derivatives: FASB ASC Topic 815, “ Derivatives and Hedging,” For derivative instruments not designated as hedging instruments, 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. cc. Fair value measurements: The Company adopted FASB ASC Topic 820, “ Fair Value Measurements and Disclosures,” dd. Discontinued operations: Under FASB ASC 205, “Presentation of Financial Statements – Discontinued Operations,” ee. Impact of recently issued accounting standards: In June 2015, the FASB issued ASU No. 2015-10, “ Technical Corrections and Improvements .” In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), Section A – Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40).” In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” In July 2013, the FASB issued ASU No. 2013-11 “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (A Consensus of the FASB Emerging Issues Task Force.” In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force).” In February 2013, the FASB issued ASU No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force).” |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Mar. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | NOTE 3: — SHORT-TERM INVESTMENTS a. The following is a summary of marketable securities which are classified as available-for-sale: March 31, 2015 2014 Amortized Unrealized Market Amortized Unrealized Market cost gain value cost gain value Available-for-sale: Government debentures $ 3,375 $ 83 $ 3,458 $ 3,304 $ (49 ) $ 3,255 b. The estimated fair value of available-for-sale investments as of March 31, 2015 and 2014 by contractual maturity, are as follows: March 31, 2015 2014 Market Market Cost Value Cost Value Available-for-sale government debentures: Matures in less than five years $ 486 $ 435 $ 116 $ 309 Matures in more than five years 2,889 3,023 3,188 2,946 $ 3,375 $ 3,458 $ 3,304 $ 3,255 |
Accounts Receivable and Other
Accounts Receivable and Other | 12 Months Ended |
Mar. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable and Other | NOTE 4: — ACCOUNTS RECEIVABLE AND OTHER a. Trade, net: The following tables summarize 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, 2015 2014 Trade accounts receivable, gross $ 459,774 $ 322,140 Reserves for sales deductions: Chargebacks (64,119 ) (46,919 ) Customer rebates (79,115 ) (58,593 ) Other sales deductions (93,954 ) (77,713 ) Allowance for doubtful accounts (159 ) (143 ) Trade accounts receivable, net $ 222,427 $ 138,772 b. Other receivables and prepaid expenses: March 31, 2015 2014 Deferred income taxes $ 199,908 $ 128,689 Note receivable 35,000 — Prepaid expenses 7,988 7,851 Interest receivable 3,574 2,011 Advances to suppliers 2,690 1,101 Government authorities 1,260 19,508 Derivative instruments — 2,924 Other 491 308 $ 250,911 $ 162,392 |
Sales Incentives
Sales Incentives | 12 Months Ended |
Mar. 31, 2015 | |
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-three 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 rolling average monthly 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. Additionally, as a general practice, the Company does not ship products that have less than 12 months until expiration (i.e., “short-dated sales”). 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 pricing, 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, 2015, 2014, and 2013: For the year ended March 31, 2015 Beginning balance Provision recorded Credits processed/ Ending balance Accounts Receivable Reserves Chargebacks $ (46,919 ) $ (772,584 ) $ 755,384 $ (64,119 ) Rebates and Other (136,449 ) (443,797 ) 407,018 (173,228 ) Total $ (183,368 ) $ (1,216,381 ) $ 1,162,402 $ (237,347 ) Current Liabilities Returns $ (64,144 ) $ (85,990 ) $ 40,369 $ (109,765 ) Other (1) (43,186 ) (73,768 ) 61,637 (55,317 ) Total $ (107,330 ) $ (159,758 ) $ 102,006 $ (165,082 ) For the year ended March 31, 2014 Beginning balance Provision recorded Credits processed/ Ending balance Accounts Receivable Reserves Chargebacks $ (22,792 ) $ (310,355 ) $ 286,228 $ (46,919 ) Rebates and Other (94,411 ) (311,405 ) 269,367 (136,449 ) Total $ (117,203 ) $ (621,760 ) $ 555,595 $ (183,368 ) Current Liabilities Returns $ (49,701 ) $ (47,209 ) $ 32,766 $ (64,144 ) Other (1) (27,697 ) (63,780 ) 48,291 (43,186 ) Total $ (77,398 ) $ (110,989 ) $ 81,057 $ (107,330 ) For the year ended March 31, 2013 Beginning balance Provision recorded Credits processed/ Ending balance Accounts Receivable Reserves Chargebacks $ (20,789 ) $ (263,330 ) $ 261,327 $ (22,792 ) Rebates and Other (69,435 ) (192,115 ) 167,139 (94,411 ) Total $ (90,224 ) $ (455,445 ) $ 428,466 $ (117,203 ) Current Liabilities Returns $ (33,426 ) $ (37,977 ) $ 21,702 $ (49,701 ) Other (1) (33,837 ) (43,184 ) 49,324 (27,697 ) Total $ (67,263 ) $ (81,161 ) $ 71,026 $ (77,398 ) (1) Includes indirect rebates. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6: — INVENTORIES March 31, 2015 2014 Raw and packaging materials $ 43,383 $ 41,216 Finished goods 47,122 49,525 Work in progress 26,680 19,250 Purchased products for commercial purposes and other 3,087 7,648 $ 120,272 $ 117,639 As of March 31, 2015 and 2014, reserves recorded against inventories for slow-moving, short-dated, excess and obsolete inventory totaled $16,031 and $14,190, respectively. As of March 31, 2015 and 2014, there were no pledges of inventory. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2015 | |
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, 2015 2014 Cost: Land $ 8,454 $ 8,821 Buildings 147,242 148,881 Leasehold improvements 2,289 2,114 Machinery and equipment 173,680 165,003 Computer equipment 28,304 28,329 Motor vehicles 235 247 Furniture, fixtures and office equipment 9,006 9,216 Advances for property and equipment 356 1,987 369,566 364,598 Accumulated depreciation and impairment charges: Buildings $ 55,037 $ 52,615 Leasehold improvements 1,216 1,250 Machinery and equipment 125,484 124,484 Computer equipment 27,017 27,117 Motor vehicles 185 170 Furniture, fixtures and office equipment 7,582 7,546 216,521 213,182 Depreciated cost $ 153,045 $ 151,416 b. Depreciation expenses were $12,480, $12,950, and $14,329 for the year ended March 31, 2015, 2014 and 2013, respectively. For related impairment charges, see Note 2.n. 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 $16,832 as of March 31, 2015 and 2014. There were no additional capitalized interest and other costs as of March 31, 2015 and 2014. d. Cost of computer equipment includes capitalized development costs of computer software developed for internal use in the amount of $4,510 and $4,569 as of March 31, 2015 and 2014, respectively. e. As for pledges – see Note 14. |
Intangible Assets and Deferred
Intangible Assets and Deferred Costs | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Deferred Costs | NOTE 8: — INTANGIBLE ASSETS AND DEFERRED COSTS a. Composition: March 31, 2015 2014 Cost: Product and distribution rights $ 77,433 $ 78,366 Deferred charges in respect of debentures from institutional investors 193 193 Other deferred costs 1,541 1,568 79,167 80,127 Accumulated amortization and impairment charges: Product and distribution rights 64,229 61,752 Deferred charges in respect of debentures from institutional investors 192 191 Other deferred costs 1,542 1,542 65,963 63,485 Amortized cost $ 13,204 $ 16,642 b. Amortization expenses related to product and distribution rights were $3,318, $3,617 and $3,436 for the years ended March 31, 2015, 2014 and 2013, respectively. c. As of March 31, 2015, the estimated amortization expense of product and distribution rights for 2016 to 2020 is as follows: 2016—$3,201; 2017—$2,718; 2018—$2,263; 2019—$853; 2020—$544. d. The weighted-average amortization period for product rights is approximately 7 years. |
Long-Term Receivables and Other
Long-Term Receivables and Other Assets | 12 Months Ended |
Mar. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Long-Term Receivables and Other Assets | NOTE 9: — LONG-TERM RECEIVABLES AND OTHER ASSETS March 31, 2015 2014 Prepayment of land leased from Israel Land Administration (1) $ 14,273 $ 14,507 Long-term deposits 30,175 36,183 Severance pay fund (2) 1,770 2,085 Long-term security deposit 39 53 Other 73 66 $ 46,330 $ 52,894 (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). This amount was prepaid. See Note 2.j. (2) Under Israeli law, the Company and its Israeli subsidiaries are 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. The Company’s non-Israeli subsidiaries maintain defined contribution retirement savings plans covering substantially all of their employees. Under the plans, contributions are based on specific percentages of pay and are subject to statutory limits. The subsidiaries’ matching contribution to the plan was $976, $1,075 and $987 for the years ended March 31, 2015, 2014 and 2013, respectively. Years ended March 31, 2015 2014 2013 Pension, retirement savings and severance expenses $ 5,979 $ 6,140 $ 6,009 |
Derivative Instruments and Fina
Derivative Instruments and Financial Risk Management | 12 Months Ended |
Mar. 31, 2015 | |
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. a. Interest rates: The Company manages its risk to fluctuating interest rates by opportunistically using interest rate swaps to convert its floating rate debt into fixed rate obligations. These interest rate swaps are not designated as hedges and changes in the fair value of these instruments are reflected in earnings. In September 2005, the Company entered into a mortgage agreement for its New York facility and concurrently entered into an interest rate swap with the intention to mitigate the variable mortgage interest rate risk by effectively establishing the mortgage rate at a fixed rate of 6.16%. At March 31, 2015 and March 31, 2014, the fair market value of the swap was a liability of $655 and $802, respectively, and was recorded in other long-term liabilities on the consolidated balance sheet. The Company recorded a net (loss) gain of $(150), $68 and $(242) within financial income, net for the years ended March 31, 2015, 2014 and 2013, respectively. These amounts include an unrealized gain of $147, $404 and $127 for the years ended March 31, 2015, 2014 and 2013, respectively. See Note 13.a.2. b. Currency exchange rates: The Company manages its exposure to debt obligations denominated in currencies other than its functional currency by opportunistically using cross-currency swaps to convert its foreign currency debt payments into its functional currency. These cross-currency swaps are not designated as hedges and changes in fair value of these derivatives are reflected in earnings. The following table sets forth the annual rate of inflation, the devaluation (appreciation) rate of the NIS and the Canadian dollar against the U.S. dollar and the exchange rates between the U.S. dollar and each of the NIS and the Canadian dollar at the end of the year indicated: Rate of Devaluation (Appreciation) Rate of Exchange of Rate of Inflation Against U.S. Dollar U.S. Dollar Period ended Israel (1) Canada (2) Israel (1) Canada (2) Israel (1) Canada (2) 3/31/2014 1.29 % 1.55 % (4.41 %) 8.84 % 3.49 1.11 3/31/2015 (1.01 %) 1.20 % 14.04 % 14.41 % 3.98 1.27 (1) Per Bank of Israel (2) Per Bank of Canada In November 2003, the Company entered into loan agreements to borrow, in Israel, NIS 210,800 for an eleven-year term at an annual interest rate of 5.8%. At the same time, the Company entered into a USD/NIS, 5-year, CPI-adjusted currency swap in which it received, at the end of the period, the NIS amount linked to the CPI plus interest equal to 5.8% of the outstanding NIS balance, and paid $47,190 plus a fixed rate of 5.9%. This swap matured on November 28, 2008, and was replaced on the maturity date by a USD/NIS, CPI-adjusted, 6-year currency swap. In accordance with this swap agreement, the Company received NIS 201,270 in six annual payments (equivalent of the remaining debt balance as of November 28, 2008), which was linked to the CPI plus additional interest equal to 5.8% of the outstanding NIS balance. The Company was required to pay $51,344 plus a fixed rate of 6.59%. These loans and the related swap matured in November 2014 and were retired. At March 31, 2014, the fair market value of the swap was $2,924 (recorded in other receivables and prepaid expenses). The Company recorded a net (loss) gain of ($1,117), $1,025 and $255 within financial income, net for the years ended March 31, 2015, 2014 and 2013, respectively, related to its swap arrangements. In October 2011, the Company began entering into separate forward contracts to purchase the Israeli Shekel and the Canadian dollar on a monthly basis at agreed upon spot rates to hedge the variability of cash flows in U.S. dollars due to changes in the respective exchange rates. The forward contracts to purchase the Shekel are for a total amount of $26,167 which is settled in monthly installments of $3,542 for the first four months and $2,000 for the remaining six months. The Company recorded a net (loss) gain of ($4,590), $2,190 and $990 for the years ended March 31, 2015, 2014 and 2013, respectively, for the contracts to purchase the Shekel. The forward contracts to purchase the Canadian dollar are for a total amount of $24,900 which is settled in monthly installments of $6,225 over four months. The Company recorded a net loss of $901, $4,421 and $1,303, for the years ended March 31, 2015, 2014 and 2013, respectively, for the contracts to purchase the Canadian dollar. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2015 | |
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: 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 and liabilities measured at fair value on a recurring basis as of March 31, 2015 and 2014 were as follows: March 31, 2015 Quoted Market Prices Significant Other of Identical Assets (Level 1) Observable Inputs (Level 2) Assets Marketable securities $ 3,458 $ — Liabilities Interest rate swap $ — $ 655 Forward contracts — 5,449 $ — $ 6,104 March 31, 2014 Quoted Market Prices Significant Other of Identical Assets (Level 1) Observable Inputs (Level 2) Assets Marketable securities $ 3,255 $ — Forward contracts — 679 Cross-currency swaps — 2,245 $ 3,255 $ 2,924 Liabilities Interest rate swap $ — $ 802 Forward contracts — 3,213 $ — $ 4,015 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Mar. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | NOTE 12: — OTHER LIABILITIES a. Other current liabilities: March 31, 2015 2014 Returns reserve $ 109,765 $ 64,144 Accrued income taxes 75,384 27,090 Medicaid and indirect rebates 43,202 32,484 Employees and payroll accruals 18,264 19,498 Accrued expenses 16,999 9,702 Due to customers 12,115 10,702 Derivative instruments 5,449 3,213 Royalties 4,251 2,321 Settlements and loss contingencies 540 26,540 Legal and audit fees 329 496 Deferred taxes 261 343 Deferred revenue 79 19,917 Other 2,975 4,085 $ 289,613 $ 220,535 b. Other long-term liabilities: March 31, 2015 2014 Accrued severance pay $ 1,712 $ 1,990 Deferred revenue 983 — Interest rate swap 655 802 Other 130 60 $ 3,480 $ 2,852 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 13: — LONG-TERM DEBT a. Composed as follows: March 31, 2015 2014 Debentures with institutional investors (1) $ — $ 11,117 Mortgage for U.S. headquarters facility (2) 5,888 6,745 5,888 17,862 Less: current maturities 912 11,974 $ 4,976 $ 5,888 (1) In 2003, the Company entered into two series of loan agreements, subsequently amended, with multiple lenders in Israel. At March 31, 2015 there were no debentures outstanding as they matured in November 2014. At March 31, 2014, the outstanding debentures are comprised of $422 (issued in U.S. dollars) at an interest rate of 6.1% with the remaining debentures of $10,695 (issued in NIS) at a rate of Israeli CPI plus 5.8%. The debentures provided certain undertakings, including (i) not to encumber any of its assets, unless to secure indebtedness, as defined in such agreements, which in the aggregate does not exceed $20,000, or unless to encumber newly acquired assets to secure financing provided to acquire such assets, and (ii) not to incur any additional indebtedness as long as the ratio of EBITDA to total net interest expense and current principal payable on long-term indebtedness is less than 2:1. The test was based on the Company’s audited financial statements, and was performed on April 1 of each year with respect to the prior calendar year. (2) In 2005, Taro U.S.A. and two of its subsidiaries entered into obligations, secured by mortgages on the Company’s U.S. headquarters facility located in New York and distribution facility located in New Jersey (subsequently retired in February 2012). The Company guaranteed these obligations. The mortgage on the New York facility was $5,888 and $6,745 as of March 31, 2015 and 2014, respectively, was for an original term of 15 years, bears interest at the rate of LIBOR plus 1.25%, and has a graduating debt service coverage ratio covenant of 1.90. At March 31, 2015 and 2014, the debt service coverage ratio was 2.30 and 2.25, respectively. The interest rate of this mortgage is effectively fixed at 6.16%, as the Company has an interest rate swap in place which is concurrent with the 15-year term of the mortgage. As of March 31, 2015, the Company is in compliance with all of its covenants. b. Classified by currency, linkage terms and interest rates, the total amount of the liabilities (including current maturities and the reclassified short-term portion) is as follows: Weighted-Average Interest Rate Amount March 31, March 31, 2015 2014 2015 2014 In, or linked to, U.S. dollars (1) 1.43 % 1.72 % $ 5,888 $ 7,167 In Israeli currency – linked to CPI — 5.80 % — 10,695 $ 5,888 $ 17,862 (1) Represents a mortgage loan in the amount of $5,888 and $6,745 as of March 31, 2015 and 2014, respectively, which is subject to variable interest rates linked to LIBOR, however the Company’s interest rate swap entered into concurrently with the mortgage agreement effectively fixes the mortgage rate at a fixed rate of 6.16%. See Note 10.a. The remaining outstanding debt in 2014 was subject to fixed interest rates. c. The debt matures as follows: As of Year Ended March 31, 2015 3/31/2016 $ 912 3/31/2017 969 3/31/2018 1,031 3/31/2019 1,096 3/31/2020 1,166 Thereafter 714 $ 5,888 As of the date of these financial statements, the Company has met all of its scheduled debt obligations. For collateral, see Note 14. |
Liabilities Collateralized by P
Liabilities Collateralized by Pledges | 12 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Liabilities Collateralized by Pledges | NOTE 14: — LIABILITIES COLLATERALIZED BY PLEDGES Balance of liabilities collateralized by pledges is as follows: March 31, 2015 2014 Mortgage for U.S. headquarters facility $ 5,888 $ 6,745 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 15: — COMMITMENTS AND CONTINGENT LIABILITIES a. Companies of the Group have leased offices, warehouse space and equipment under operating leases for periods through 2019. The minimum annual rental payments, under non-cancelable lease agreements, are as follows: March 31, 2015 3/31/2016 $ 1,216 3/31/2017 492 3/31/2018 165 3/31/2019 6 Thereafter — $ 1,879 Total rent expenses were $2,576, $3,245 and $3,479 for the years ended March 31, 2015, 2014 and 2013, respectively. 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 Office of the Chief Scientist (“OCS”) on proceeds from sales 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 U.S. dollar. Grants are subject to interest at a rate of LIBOR (cost of borrowing funds in U.S. dollars). As of March 31, 2015 and 2014, the aggregate contingent liability to the OCS was $11,624 and $11,320, respectively. Royalty payments to the OCS were $38, $0 and $0 for the years ended March 31, 2015, 2014 and 2013, respectively. c. Legal proceedings: From time to time the Company is subject to litigation arising in the ordinary course of business, including patent litigation resulting from our use of the patent challenge procedures set forth in the Hatch Waxman Act. 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. Based upon the status of these cases, management’s assessment of the likelihood of damages, and the advice of counsel, no provisions have been made except as noted below. 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. The Company is party to certain lawsuits disclosed herein; whose outcome the Company does not believe will have a material adverse effect on its consolidated financial statements. 1. Legal actions commenced by the Company: i. Company’s lawsuit related to Topicort ® On or about June 17, 2014 and July 2, 2014, the Company received from Perrigo Israel Pharmaceuticals Ltd. (“Perrigo”) two Paragraph IV certification notice letters indicating that Perrigo had submitted to the FDA an ANDA seeking approval to manufacture and sell a generic version of Topicort ® 2. Other Legal Actions: On November 19, 2013, a number of minority shareholders of the Company commenced litigation in Israel, seeking to invalidate certain resolutions that were adopted at the annual general meeting of the Company held on September 12, 2013. This litigation challenged the adoption of these resolutions by claiming the Company did not take proper steps to ensure that the majority vote in favor of these resolutions also included a majority of those shareholders who had no “personal interest” in the resolutions (as required by the Israeli Companies Law). These shareholders also raised other claims regarding the resolutions adopted at that meeting, such as the validity of the compensation policy approved by the shareholders. Since this litigation was filed, these resolutions were ratified at an extraordinary general meeting held on March 27, 2014. On August 10, 2014, the claimants filed an amended complaint requesting that the resolutions passed at the extraordinary general meeting be voided and further contending that under Israeli law shareholders must identify themselves in order to be considered “disinterested” and reiterated their arguments against the validity of the terms of the compensation policy and the remuneration of officers approved by the shareholders. Summaries were filed with the Court, regarding the shareholders’ claims of the existence of an alleged duty of identification, and the matter remains pending. Taro has been a defendant in two actions brought against various pharmaceutical manufacturers in the States of Utah and Louisiana. The actions relate to drug price reporting by these manufacturers. In addition, Taro received an investigative demand that also relates to drug price reporting from Texas in August 2012. In May 2008, the State of Utah filed a lawsuit against the Company and a number of other pharmaceutical manufacturers and in November 2010, the State of Louisiana filed a lawsuit in state court against the Company and a number of other pharmaceutical manufacturers. Generally speaking, the lawsuits allege that the defendants caused the State to overpay pharmacies under the State Medicaid Program by reporting inflated Average Wholesaler Prices (“AWP”). The Utah trial court dismissed the case with prejudice in February 2010. However, in March 2010, the plaintiff appealed the decision and the Utah Supreme Court issued its decision in June 2012. The ruling generally affirmed that the complaint by the plaintiff is inadequate and the State was given leave by the court to re-plead its case, which it did. The defendants subsequently filed a motion to dismiss, which was denied. The case is currently in the discovery phase and the first trial will not be before August 2016. The Company settled the Louisiana action for $6.1 million in September 2013. In July 2014, the Company reached a settlement with the State of Texas in connection with the investigative demand it received, in the amount of $19.5 million. During the year ended March 31, 2015, the Company reversed $6.5 million of the provision for AWP-related matters. A group of former Israeli soldiers have filed three lawsuits for personal injury against the Municipality of Haifa, The Israel Oil Refineries Ltd., The Haifa Town Union Sewage and Haifa Chemicals Ltd. alleging that they contracted serious illnesses as a result of their military service which included diving in the Kishon River near Haifa Bay. In 2005, the Company and over 40 municipalities, governmental entities (including the State of Israel), cooperative villages (kibbutzim) and other companies, were named as third party defendants in these lawsuits. On June 17, 2013, the court dismissed the lawsuits and ruled that the plaintiffs were unable to prove that their exposure to dangerous substances in the Kishon River water was the cause of their illnesses. The plaintiffs filed an appeal to the Supreme Court, which is still pending. The hearing of the lawsuits filed by a group of fishermen also claiming to suffer from serious illnesses as a result of their activities in the Kishon River was dismissed by the court on November 3, 2013. The plaintiffs requested an extension to the appeal deadline and such appeal is scheduled to be heard on September 7, 2015. d. Licensing Agreements: 1. On December 6, 2013, Taro purchased NDA #18-3337 Feverall ® 2. On February 21, 2012, the Company entered into a License and Settlement Agreement (the “Medicis Settlement Agreement”) with Medicis Pharmaceutical Corporation. In connection with the Medicis Settlement Agreement, the Company agreed to settle all legal disputes between the parties relating to Medicis’ LOPROX ® ® 3. On July 20, 2010, Taro and Galderma Laboratories, L.P. (“Galderma”), entered into a sub-license and supply agreement. Galderma manufactures a generic version of the product and Taro distributes to its customers. Taro purchases product at an establish transfer price and pays royalties based on the amounts of net sales to its customers. 4. In May 2010, Taro and Glenmark Generics Inc., USA, a wholly owned subsidiary of Glenmark Generics Ltd., India (“Glenmark”), entered into an exclusive license and supply agreement for a branded product. Glenmark manufactures the product and Taro distributes the product to customers. Taro made an up-front payment of $2,500 for distribution rights and an additional payment of $2,500 upon the first shipment to customers, for a total of $5,000, which is being amortized over six years. Taro also pays royalties based on the amounts of sales to its customers. e. Other: Payments to pharmacies for Medicaid-covered outpatient prescription drugs are set by the states. For multiple source drugs with respect to which FDA has rated at least three drugs as therapeutically equivalent, the amount that states may reimburse pharmacies is subject to a Federal upper limit (FUL) ceiling. Health care reform legislation 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 175 percent of the weighted-average of the average manufacturer prices (AMPs) reported to the government by manufacturers of each of the therapeutically equivalent multiple source drugs. The change in FUL methodology has not been implemented yet by CMS. Effective October 1, 2010, the legislation also changed the definition of AMP to exclude sales to certain customer classes that were previously included. In addition, under the Medicaid Drug Rebate Program, manufacturers are required, as a condition of Federal payment for their drugs under Medicaid and Medicare Part B, to pay rebates to state Medicaid programs on drugs dispensed to Medicaid beneficiaries in the state. The amount of the rebate is based on the AMP and (for innovator drugs) the best price of the drug. Besides changing the definition of AMP, the health care reform legislation increased the minimum Medicaid Rebate, effective January 1, 2010. Pending implementation of the new FUL methodology, CMS has been using AWP or Wholesaler Acquisition Cost (“WAC”) in the calculation of FULs. States have also historically used AWP or WAC in setting Medicaid reimbursement rates for drugs. Many pharmaceutical companies have been named in civil lawsuits alleging generally that the defendants overstated AWPs or WACs, which were used by state agencies to calculate drug reimbursements to healthcare providers. On April 29, 2011, the Board ratified a collective bargaining agreement dated as of April 6, 2011 (the “Collective Bargaining Agreement”) among Taro, the Histadrut Trade Union and Taro’s Employees Committee on behalf of Taro’s Israeli employees. The Collective Bargaining Agreement has a term of five years and automatically renews for two-year periods unless notice is provided by either side 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. On January 23, 2013, the Company entered into a special collective bargaining agreement (the “Special Collective Bargaining Agreement”) among Taro, the Histadrut Trade Union and Taro’s Employees Committee on behalf of Taro’s Israeli employees. The Special Collective Bargaining Agreement memorializes the rights of the Company’s employees at the Yakum site in Israel, following the Company’s decision to transfer the activities performed at the Yakum site to the Company’s existing Haifa site. On December 19, 2013, the Company closed its offices at the Yakum site and the Yakum site employees received their entitlements under the Special Collective Bargaining Agreement. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2015 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | NOTE 16: — 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: 1. The Company’s 1999 Stock Incentive Plan (“1999 plan”) provides for the issuance of incentive stock options, non-qualified stock options, or stock appreciation rights to key employees and associates of the Group. The options were substantially granted with an exercise price equal to 100% of the fair market value of the stock on the date of grant and the aggregate amount of the options granted may not exceed 2,100,000 and none of the options granted include stock appreciation rights. The options were granted to employees and associates, had a four to five-year graded vesting term and expire ten years after the date of the grant. Each option entitled its holder the right to purchase one ordinary share of NIS 0.0001 par value (subject to adjustments). As of March 31, 2015, no options were outstanding and as March 31, 2014, an aggregate of 1,000 options in respect of the 1999 plan were outstanding. No further options in respect of the 1999 plan are available for future grants. The Company issued new shares to employees exercising their stock options. 2. A summary of the Company’s stock option activity and related information for the year ended March 31, 2015 is as follows: Weighted- average Number of Exercise exercise options price price Outstanding at March 31, 2014 1,000 $ 26.09 $ 26.09 Exercised (1,000 ) 26.09 26.09 Forfeited — — — Granted — — — Outstanding at March 31, 2015 — $ — $ — There were 1,000, 23,700, and 291,555 options exercised in the years ended March 31, 2015, 2014 and 2013, respectively, with a total intrinsic value of approximately $85, $557 and $5,286, respectively. As of March 31, 2013, the compensation costs related to share-based compensation arrangements granted under the Company’s stock option plan were fully amortized. For the years ended March 31, 2015, 2014 and 2013, the Company recognized $0, $0 and $8, respectively, in share-based compensation expense. d. There were no options outstanding as of March 31, 2015 and 1,000 options were exercisable as of March 31, 2014. The weighted-average exercise prices for the options exercisable as of March 31, 2014 were $26.09. e. Dividends: The Company may declare and pay dividends from retained earnings. For restrictions on dividend distribution, see Note 17.c. f. Net income per share: Year ended March 31, 2015 Year ended March 31, 2014 Year ended March 31, 2013 Net income attributable Per Net income attributable Per Net income attributable Per to Taro Shares Share to Taro Shares Share to Taro Shares Share (numerator) (denominator) Amount (numerator) (denominator) Amount (numerator) (denominator) Amount Basic EPS: $ 484,257 42,833,533 $ 11.31 $ 360,387 44,276,003 $ 8.14 $ 266,206 44,677,603 $ 5.96 Effect of dilutive securities: Stock options — 217 — — 3,121 — — 37,508 — Diluted EPS: $ 484,257 42,833,750 $ 11.31 $ 360,387 44,279,124 $ 8.14 $ 266,206 44,715,111 $ 5.95 g. As of March 31, 2015, the accumulated other comprehensive income comprised of loss from foreign currency translation adjustments of ($111,149) and unrealized gain from available for sale securities of $183. As of March 31, 2014, the accumulated other comprehensive income comprised of loss from foreign currency translation adjustments of ($22,996) and unrealized gain from available for sale securities of $100. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17: — INCOME TAXES a. Corporate income tax rate in Israel: Taxable income of Israeli companies is subject to income tax at the rate of 26.5% in 2015 and 25% in 2014 and 2013. 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 accelerated depreciation 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 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 provides 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 cancelled and the Company may be required to refund the benefits, in an amount linked to the Israeli consumer price index plus interest. The Company qualifies 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%). The Company has three active plans, two Approved Enterprises under the Alternative Benefits Programs (Plans 3-4 and Plan 5) and one Benefited Enterprise (Plan 6), granting us a package of benefits, subject to compliance with applicable requirements. Under Plan 3-4 (benefit period starting 2003), the Company was entitled to an exemption from corporate income tax on undistributed profits for a period of two years following implementation of the plan and to a reduced tax rate of between 10% and 25% (depending on the level of foreign investment) for an additional thirteen years thereafter. 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. We filed a request for an additional five years of reduced tax rates for such plan. Approval is still pending. 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 is 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, 2015, Management believes that the Company complied with all of the aforementioned requirements. If the Company pays a dividend, the source of which is income derived from the Approved and/or Benefited Enterprises during the tax exempt period, the Company will be subject to corporate tax at the rate ordinarily applicable to the Approved/Benefited Enterprise from which it was exempt, 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. For the years ended March 31, 2015 and 2014, income not eligible for Approved and/or Benefited Enterprise benefits is taxed at the regular corporate income tax rate (either 26.5% or 25%, see above). 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 and 16% elsewhere in Israel. 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. Certain “Special Industrial Companies” 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 Industrial Company,” the approval of three governmental authorities in Israel is required. We did not elect to apply for Amendment 68 in tax year 2015 or 2014. e. 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 U.S. dollars 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 is binding to the Company for three years. Accordingly, commencing taxable year 2003, results for tax purposes are measured in U.S. Dollar terms. After the initial three-year term, the Company must make the election on an annual basis. Through taxable year 2014, the Company has consistently elected, for tax purposes, to measure its earnings in U.S. dollars. f. Income from continuing and discontinued operations before income taxes is comprised of the following: Year ended March 31, 2015 2014 2013 Domestic (Israel) $ 250,979 $ 190,233 $ 65,934 Foreign (North America, the Cayman Islands, Ireland and the U.K.) 329,914 253,355 268,735 Income from continuing and discontinued operations before taxes $ 580,893 $ 443,588 $ 334,669 g. Taxes on income are comprised of the following: Year ended March 31, 2015 2014 2013 Current taxes $ 166,466 $ 106,561 $ 93,165 Prior years’ benefits (20 ) (124 ) (6,544 ) Deferred income benefits (70,387 ) (23,708 ) (18,822 ) $ 96,059 $ 82,729 $ 67,799 Domestic $ 25,881 $ 16,852 $ 1,139 Foreign 70,178 65,877 66,660 $ 96,059 $ 82,729 $ 67,799 Included within current and deferred income tax expense are benefits relating to investment tax credits at Taro Canada of $909, $1,439 and $1,320 for the years ended March 31, 2015, 2014 and 2013, respectively. Taro Canada uses the “flow-through” method and therefore records the benefits in earnings in the period the tax credits are utilized. h. Reconciliation of the statutory tax rate of the parent company in Israel to the effective consolidated tax rate: Year ended March 31, 2015 2014 2013 Statutory tax rate (In Israel) 26.5 % 25.0 % 25.0 % (Decrease) increase in effective tax rate due to: Tax benefits from reduced tax rates under benefit programs (7.0 %) (5.0 %) (4.0 %) Different tax rates applicable to non-Israeli subsidiaries (4.0 %) (2.0 %) 1.0 % Uncertain tax positions, net 1.0 % 1.0 % (3.0 %) Taxes (benefits) from prior years 0.0 % 0.0 % 1.0 % Effective consolidated tax rate 16.5 % 19.0 % 20.0 % i. Current taxes are calculated at the following rates: Year ended March 31, 2015 2014 2013 On Israeli operations (not including “Approved Enterprise”) 26.5 % 25.0 % 25.0 % On U.S. operations * 35.5 % 35.0 % 35.0 % On Canadian operations * 25.0 % 25.0 % 25.0 % On U.K. operations * 21.0 % 23.0 % 24.0 % On Ireland operations * 12.5 % 12.5 % 12.5 % * The U.S., Canadian, U.K., and Irish 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. j. 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, 2015 2014 Deferred tax assets: Net operating loss carryforward $ 10,379 $ 12,347 Deferred revenue 34,834 23,343 Property, plant, and equipment 921 1,224 Accrued expenses 131,524 91,603 Bad debt allowance 39 38 Amortization and impairment 5,406 5,917 Other, net 32,259 12,695 Total deferred tax assets 215,362 147,167 Valuation allowance for deferred tax assets (11,301 ) (13,573 ) Net deferred tax assets 204,061 133,594 Deferred tax liabilities: Property, plant, and equipment (1,901 ) (1,739 ) Other, net (261 ) (343 ) Total deferred tax liabilities (2,162 ) (2,082 ) Net deferred tax assets $ 201,899 $ 131,512 Domestic $ 12,721 $ 9,990 Foreign 189,178 121,522 $ 201,899 $ 131,512 The deferred income taxes are presented in the balance sheet as follows: March 31, 2015 2014 Among current assets (“other receivables and prepaid expenses”) $ 199,908 $ 128,689 Long-term deferred income tax assets 4,153 4,905 Among short-term liabilities (261 ) (343 ) Among long-term liabilities (1,901 ) (1,739 ) $ 201,899 $ 131,512 k. Carryforward tax losses: 1. The Company: As of March 31, 2015, the Company has no carryforward net operating losses. As of March 31, 2015 the Company has carryforward capital losses of approximately $74,000. Such losses can only be used to offset capital gains. 2. Canadian subsidiary: As of March 31, 2015, this subsidiary has no carryforward losses. 3. U.K. subsidiary: As of March 31, 2015, this subsidiary has carryforward tax losses of $10,638, which may be carried forward and offset against taxable income for an indefinite period in the future. As discussed in Note 2.u, there is a full valuation allowance provided against these losses. 4. Irish subsidiary: As of March 31, 2015, this subsidiary has carryforward losses of $68,185. Taro Ireland commenced trade in 2006 and therefore has satisfied any expiration deadlines. As discussed in Note 2.u, a full valuation allowance is provided against these losses. 5. U.S. subsidiary: As of March 31, 2015, this subsidiary has no carryforward tax losses. 6. Hungarian subsidiary: As of March 31, 2015, this subsidiary has no carryforward losses. l. The Company’s Board of Directors has determined that its U.S. subsidiary will not pay any dividend as long as such payment will result in any tax expense for the Company. m. At March 31, 2015, deferred income taxes were not provided for on a cumulative total of $766,152 of the undistributed earnings of Taro Canada, which are not taxable provided earnings remain undistributed. Taro Canada intends to invest these earnings indefinitely in its operations. n. Foreign withholding taxes have been accrued as necessary by the Company and its subsidiaries. o. Tax assessments: The Company completed its tax assessments with the Israeli tax authorities for years through 2009. The Company’s tax provision was adequate to satisfy these assessments. The Company may be subject to examination by the Israeli tax authorities for years 2010 and onward. The Company believes that its tax provision is adequate to satisfy any assessments resulting from examinations related to these years. The Company completed its tax assessments with the U.S. tax authorities for the years through March 31, 2013. The Company’s tax provision was adequate to satisfy these assessments. Taro U.S.A. is currently under examination for the year ending 2014. The Company believes that its tax provision is adequate to satisfy any assessments resulting from examination related to these years. The Company completed its tax assessments with the Canadian tax authorities for the years through 2010. The Company’s tax provision was materially adequate to satisfy these assessments. Taro Canada remains subject to examination by the Canadian tax authorities for years after 2010. The Company believes that its tax provision is adequate to satisfy any assessments resulting from examinations related to these years. p. Uncertain tax positions: The Company adopted FASB ASC Section 740-10-25, “ Income Taxes-Overall-Recognition,” March 31, 2015 2014 2013 Unrecognized tax exposure at beginning of year $ 6,858 $ 6,634 $ 13,828 Increases as a result of positions taken in prior period 129 146 1,912 Decreases as a result of positions taken in prior period (462 ) (1,815 ) (115 ) Increases as a result of positions taken in current period 2,501 1,893 1,495 Decreases due to settlements with tax authorities (60 ) — (10,216 ) Decreases due to expiration of statute of limitations — — (270 ) Unrecognized tax exposure at end of year $ 8,966 $ 6,858 $ 6,634 The total amount of interest and penalties recognized on the Consolidated Statement of Operations for the years ended March 31, 2015, 2014 and 2013, were ($230), $751, and ($2,730), respectively. The total amount of interest and penalties recognized on the consolidated balance sheet at March 31, 2015 and 2014 were $550 and $2,567, respectively. The total amount of unrecognized tax benefits, which would impact the effective tax rate if recognized, was $8,966 and $6,858 at March 31, 2015 and 2014, respectively. |
Selected Statements of Income D
Selected Statements of Income Data | 12 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Selected Statements of Income Data | NOTE 18: — SELECTED STATEMENTS OF INCOME DATA Years ended March 31, 2015 2014 2013 Sales by location of customers : U.S.A. $ 777,191 $ 669,481 $ 587,851 Canada 55,452 56,718 52,452 Israel 22,157 22,917 19,929 Other 8,144 10,169 10,722 $ 862,944 $ 759,285 $ 670,954 Selling, marketing, general and administrative expenses: Selling and marketing $ 44,617 $ 46,343 $ 43,938 Advertising 8,370 9,787 7,213 General and administrative * 34,657 35,603 35,287 Settlements and loss contingencies (4,200 ) 2,590 33,300 $ 83,444 $ 94,323 $ 119,738 * Including provision for doubtful accounts $ 16 $ 25 $ 4 Financial (income) expenses: Interest and exchange differences on long-term liabilities $ 928 $ 1,515 $ 2,512 Income in respect of deposits (10,605 ) (6,683 ) (4,026 ) Expenses in respect of short-term credit — 1 — Foreign currency transaction losses (41,634 ) (7,118 ) (2,417 ) $ (51,311 ) $ (12,285 ) $ (3,931 ) |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 19: — 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, and as of March 31, 2015: Sales to unaffiliated customers ** $ 22,157 $ 55,452 $ 777,191 $ 8,144 $ 862,944 Long-lived assets *** $ 88,804 $ 46,876 $ 36,755 $ 1,020 $ 173,455 Year ended March 31, 2014 and as of March 31, 2014: Sales to unaffiliated customers ** $ 22,917 $ 56,718 $ 669,481 $ 10,169 $ 759,285 Long-lived assets *** $ 90,676 $ 44,165 $ 39,140 $ 1,325 $ 175,306 Year ended March 31, 2013 and as of March 31, 2013: Sales to unaffiliated customers ** $ 19,929 $ 52,452 $ 587,851 $ 10,722 $ 670,954 Long-lived assets *** $ 87,912 $ 38,614 $ 40,383 $ 1,240 $ 168,149 * Includes operations in both Canada and Cayman Islands. ** Based on customer’s location. *** Includes property, plant and equipment, net; goodwill and intangible assets, net. b. For the year ended March 31, 2015, the Company had net sales to three different U.S. customers of 18.0%, 14.1% and 10.3% of consolidated net sales. For the year ended March 31, 2014, the Company had net sales to three different customers of 20.4%, 17.3% and 13.4% of consolidated net sales For the year ended March 31, 2013, the Company had net sales to three different customers of 20.8%, 14.0% and 12.2% of consolidated net sales. c. Sales by therapeutic category, as a percentage of total net sales for the years ended March 31, 2015, 2014 and 2013, were as follows: Year ended March 31, Category 2015 2014 2013 Dermatological and topical 66 % 73 % 77 % Neuropsychiatric 16 % 14 % 9 % Cardiovascular 8 % 6 % 6 % Anti-inflammatory 5 % 4 % 4 % Other 5 % 3 % 4 % Total 100 % 100 % 100 % |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 20: — DISCONTINUED OPERATIONS a. During 2010, the Company’s management decided to sell its Irish facility. The results of operations of the Irish facility have been classified as discontinued operations in the Consolidated Statements of Operations. b. The following is the detail of discontinued operations: Year ended March 31, 2015 2014 2013 Sales, net $ — $ — $ — Cost of sales (276 ) (220 ) (1,170 ) Gross loss (276 ) (220 ) (1,170 ) Operating expenses: Research and development (2 ) — (10 ) Selling, marketing, general and administrative (167 ) (182 ) (216 ) Operating loss (445 ) (402 ) (1,396 ) Financial (expenses) income, net (347 ) 162 (213 ) Other income, net 2 2 415 Loss before income taxes (790 ) (238 ) (1,194 ) Tax benefit (expense) 3 (81 ) — Net loss from discontinued operations $ (787 ) $ (319 ) $ (1,194 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 21: — RELATED PARTY TRANSACTIONS Sun controls 79.2% of the voting power in the Company. In addition, the Company has substantial relationships with Sun. Certain of Taro’s Board members are also on Sun Pharma’s Board of Directors, including our Chairman, Dilip Shanghvi who is also Managing Director of Sun Pharma’s Board of Directors. In addition, certain of Taro’s officers and executives are also executives of Sun. Taro’s Chief Executive Officer, Kal Sundaram, is also a member of the Board of Directors of Taro and in charge of the Americas for Sun Pharma and an officer of a number of direct and indirect subsidiaries of Sun. Since 2013, Taro entered into various commercial transactions, including product distribution and service agreements with Sun in the ordinary course of our business. The Company does not currently deem any of these transactions material or unusual and believes that terms of these transactions are comparable to those offered by or that could be obtained from unrelated third parties. Additionally, pursuant to Israeli legal requirements, each of the transactions was presented to the Audit Committee, which determined that each such transaction was not considered extraordinary pursuant to Israeli legal requirements and therefore did not require shareholder approval. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 22: — SUBSEQUENT EVENTS Stock options: Between April 1, 2015 and June 30, 2015, no stock options were granted to the Company’s directors or employees. |
Schedule II_ - Valuation and Qu
Schedule II: - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2015 | |
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 Polici31
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements and assumptions. The Company’s 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 Company’s most critical estimates are used in its determination of its sales incentives reserves (see Note 5), inventory reserves, income taxes, fixed assets, intangible assets, derivative instruments and contingencies. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: A majority of the revenue of the Company and certain of its subsidiaries (exclusive of its Canadian, Irish, and U.K. subsidiaries – see below) is generated in U.S. dollars (“dollars”). In addition, a substantial portion of the costs of the Company and these subsidiaries is incurred in dollars. The Company’s management believes that dollars 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 dollar, requiring re-measurement from the local currency into dollars for each of these entities. All exchange gains and losses resulting from the re-measurement are reflected in the Consolidated Statement of Operations as financial income or expense, as appropriate. The functional currency of the Company’s Canadian, Irish, and U.K. subsidiaries are the Canadian dollar, the Euro, and the British Pound, respectively. Accordingly, the financial statements of the Canadian, Irish, and U.K. subsidiaries have been translated into dollars. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Amounts recorded in the Consolidated Statements of Operations have been translated using the average exchange rate prevailing during the year. The resulting translation adjustments are reported as a component of shareholders’ equity under accumulated other comprehensive income. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Inter-company transactions and balances have been eliminated in consolidation and non-controlling interest is included in shareholders’ equity. Sun, through its wholly owned subsidiary, Taro Development Corporation (“TDC”), owns 3.125% of the shares that have economic rights and has 50% of the voting rights in Taro U.S.A.; with the Company owning the remaining shares and voting rights. In 1993, TDC signed an agreement with the Company to vote all of its shares in Taro U.S.A. in all elections of directors of Taro U.S.A. as the Company shall instruct. In May 2011, TDC renewed its commitment to the Company. TDC may terminate the agreement upon one year written notice and no such notice of termination has been provided. TDC is a minority shareholder in the Company by way of its ownership of Taro U.S.A. shares that have economic rights. |
Cash and cash equivalents | d. Cash and cash equivalents: Cash equivalents are short-term, highly-liquid investments that are readily convertible into cash with original maturities of three months or less at the date acquired. 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 values and are invested at an average interest rate of 0.93% and 1.21% for March 31, 2015 and 2014, respectively. |
Marketable securities | e. Marketable securities: Marketable securities are comprised primarily of bonds issued by government municipalities. These marketable securities covered by FASB ASC Section 320-10-25, “ Investments: Debt and Equity Securities – Overall – Recognition,” 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. During the years ended March 31, 2015, 2014 and 2013, the Company did not own or sell any marketable securities previously impaired. |
Allowance for doubtful accounts | f. Allowance for doubtful accounts: The allowance for doubtful accounts is calculated primarily with respect to specific balances, for which, in the opinion of the Company’s management, collection of such balances is doubtful. The allowance, in the opinion of the Company’s management, is sufficient to cover probable uncollectible balances. See Note 4. |
Inventories | g. 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 – average cost basis. Finished goods and work in progress – average production costs including materials, labor and direct and indirect manufacturing expenses. Purchased products for commercial purposes – average cost basis. |
Deferred income taxes | h. 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. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting, or according to the expected reversal dates of the specific temporary differences where appropriate. |
Property, plant and equipment | i. 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: % Buildings 2.5 - 10 Machinery and equipment 5 - 20 (mainly 10) Motor vehicles 15 - 20 Furniture, fixtures, office equipment and computer equipment 6 - 33 (mainly 20) Leasehold improvements are depreciated using the straight-line method over the shorter of their useful lives or the terms of the leases (generally 5-10 years). (3) The Group accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC Subtopic 350-40, “ Intangibles: Goodwill and Other – Internal-Use Software.” |
Lease of land from Israel Land Administration | j. Lease of land from Israel Land Administration: The Company leases several parcels of land from the Israel Land Administration (“ILA”), which is accounted for pursuant to FASB ASC Subtopic 840-20, “ Leases – Operating Leases.” |
Goodwill | k. Goodwill: The Company follows the provisions of FASB ASC Subtopic 350-20, “ Intangibles: Goodwill and Other – Goodwill.” The Company operates in one operating segment, comprising its only reporting unit. The goodwill impairment tests are conducted in two steps. In the first step, the Company determines the fair value of the reporting unit. If the net book value of the reporting unit exceeds its fair value, the Company would then perform the second step of the impairment test which requires allocation of the reporting unit’s fair value of all of its assets and liabilities in a manner similar to an acquisition cost allocation, with any residual fair value being allocated to goodwill. The implied fair value of the goodwill is then compared to the carrying value to determine impairment, if any. The Company determined the fair value of a reporting unit using the market approach which is based on the market capitalization by using the share price of the Company in the NYSE and an appropriate control premium. As of March 31, 2015, the market capitalization of the Company was significantly higher than the net book value of the reporting unit and therefore there was no need to continue to step two. Taro determined the goodwill was not subject to impairment as of March 31, 2015 and 2014. |
Contingencies | l. 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. |
Tax contingencies | m. Tax contingencies: FASB ASC 740, “ Income Taxes, |
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 not considered to have an indefinite useful life and are amortized over their useful life of a weighted-average amortization period of 14 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, in accordance with FASB ASC Topic 350, “ Intangibles-Goodwill and Other Debt issuance costs in respect to long-term debentures from institutional investors and bondholders are deferred and amortized under the effective interest method over the term of the debentures. Long-lived assets: The Group’s long-lived assets, excluding goodwill, are reviewed for impairment in accordance with FASB ASC Topic 360, “ Property, Plant and Equipment, |
Comprehensive income | o. Comprehensive income: The Company accounts for comprehensive income in accordance with FASB ASC Topic No. 220, “ Comprehensive Income. Comprehensive Income (Topic 220): Presentation of Comprehensive Income,” Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,” |
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. From time to time the Company may reissue treasury shares upon exercise of options. When treasury stock is reissued, the Company accounts for their issuance in accordance with FASB ASC Subtopic 505-30, “ Equity – Treasury Stock,” 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 generally recognizes revenue from product sales when title and risk of loss have transferred to its customers and when the criteria in FASB ASC Subtopic 605-15, “Revenue Recognition – Products,” 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, cash discounts 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 beyond the Company’s control, and historical data. Product returns result from agreements allowing the Company’s customers to return unsold inventory that is expired or close to expiration. 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. See Notes 5 and 12. 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 ASC Subtopic 605-50, “ Revenue Recognition – Customer Payments and Incentives |
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 assets on our balance sheet and expensed as provided. |
Royalty-bearing grants | s. Royalty-bearing grants: Royalty-bearing grants from the government of Israel through the Office of the Chief Scientist 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 not earn any grants during the year ended March 31, 2015, 2014 and 2013. |
Advertising expenses | t. Advertising expenses: The Group expenses advertising costs as incurred. Product samples are recorded within prepaid expense on the consolidated balance sheet and recorded within advertising expenses when provided to potential customers. Advertising expenses were $8,370, $9,787, and $7,213 for the years ended March 31, 2015, 2014 and 2013, respectively. |
Income taxes | u. Income taxes: Income taxes are accounted for in accordance with FASB ASC Topic 740, “ Income Taxes |
Sales and other taxes collected and remitted to governmental authorities | v. 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 | w. Basic and diluted net income per ordinary share attributable to Taro: Basic net income per ordinary share is calculated based on the weighted-average number of ordinary shares outstanding during each year. Diluted net 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), in accordance with FASB ASC Topic 260, “ Earnings per Share.” |
Freight and distribution costs | x. Freight and distribution costs: In accordance with FASB ASC Subtopic 605-45, “ Revenue Recognition – Principal Agent Considerations,” |
Accounting for share-based compensation | y. Accounting for share-based compensation: The Company recognizes compensation expense in accordance with FASB ASC Topic 718, “ Compensation: Stock Compensation,” |
Concentrations of credit risk | z. Concentrations of credit risk: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits and trade receivables. Cash and cash equivalents and bank deposits are principally invested in major banks in Israel, the United States, Europe, Canada and the Cayman Islands. Such deposits in the United States 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 bank deposits are financially sound and that 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 United States, Canada, Europe and Israel. At March 31, 2015, three different customers represented approximately 25.3%, 24.9% and 16.0% 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 | aa. Fair value of financial instruments: The carrying amounts of cash and cash equivalents, short-term bank deposits, trade and other receivables and trade and other payables approximate their fair value, due to the short-term maturities of these instruments. The carrying amount of long-term bank deposits approximates their fair value because such deposits bear market interest rates. The carrying amounts of the Group’s borrowing arrangements under its debt agreements approximate their fair value since the loans bear interest at rates that approximate the Group’s incremental borrowing rates for similar types of 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 U.S. dollars at the current spot foreign currency exchange rate. |
Accounting for derivatives | bb. Accounting for derivatives: FASB ASC Topic 815, “ Derivatives and Hedging,” For derivative instruments not designated as hedging instruments, 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 | cc. Fair value measurements: The Company adopted FASB ASC Topic 820, “ Fair Value Measurements and Disclosures,” |
Discontinued operations | dd. Discontinued operations: Under FASB ASC 205, “Presentation of Financial Statements – Discontinued Operations,” |
Impact of recently issued accounting standards | ee. Impact of recently issued accounting standards: In June 2015, the FASB issued ASU No. 2015-10, “ Technical Corrections and Improvements .” In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), Section A – Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40).” In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” In July 2013, the FASB issued ASU No. 2013-11 “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (A Consensus of the FASB Emerging Issues Task Force.” In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force).” In February 2013, the FASB issued ASU No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force).” |
Significant Accounting Polici32
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of annual depreciation rates of property, plant and equipment | % Buildings 2.5 - 10 Machinery and equipment 5 - 20 (mainly 10) Motor vehicles 15 - 20 Furniture, fixtures, office equipment and computer equipment 6 - 33 (mainly 20) |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | a. The following is a summary of marketable securities which are classified as available-for-sale: March 31, 2015 2014 Amortized Unrealized Market Amortized Unrealized Market cost gain value cost gain value Available-for-sale: Government debentures $ 3,375 $ 83 $ 3,458 $ 3,304 $ (49 ) $ 3,255 |
Estimated Fair Value of Available-for-sale Investments by Contractual Maturity | b. The estimated fair value of available-for-sale investments as of March 31, 2015 and 2014 by contractual maturity, are as follows: March 31, 2015 2014 Market Market Cost Value Cost Value Available-for-sale government debentures: Matures in less than five years $ 486 $ 435 $ 116 $ 309 Matures in more than five years 2,889 3,023 3,188 2,946 $ 3,375 $ 3,458 $ 3,304 $ 3,255 |
Accounts Receivable and Other (
Accounts Receivable and Other (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Receivables [Abstract] | |
Components of Trade Accounts Receivable, Net | The following tables summarize 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, 2015 2014 Trade accounts receivable, gross $ 459,774 $ 322,140 Reserves for sales deductions: Chargebacks (64,119 ) (46,919 ) Customer rebates (79,115 ) (58,593 ) Other sales deductions (93,954 ) (77,713 ) Allowance for doubtful accounts (159 ) (143 ) Trade accounts receivable, net $ 222,427 $ 138,772 |
Components of Other Receivables and Prepaid Expenses | b. Other receivables and prepaid expenses: March 31, 2015 2014 Deferred income taxes $ 199,908 $ 128,689 Note receivable 35,000 — Prepaid expenses 7,988 7,851 Interest receivable 3,574 2,011 Advances to suppliers 2,690 1,101 Government authorities 1,260 19,508 Derivative instruments — 2,924 Other 491 308 $ 250,911 $ 162,392 |
Sales Incentives (Tables)
Sales Incentives (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
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, 2015, 2014, and 2013: For the year ended March 31, 2015 Beginning balance Provision recorded Credits processed/ Ending balance Accounts Receivable Reserves Chargebacks $ (46,919 ) $ (772,584 ) $ 755,384 $ (64,119 ) Rebates and Other (136,449 ) (443,797 ) 407,018 (173,228 ) Total $ (183,368 ) $ (1,216,381 ) $ 1,162,402 $ (237,347 ) Current Liabilities Returns $ (64,144 ) $ (85,990 ) $ 40,369 $ (109,765 ) Other (1) (43,186 ) (73,768 ) 61,637 (55,317 ) Total $ (107,330 ) $ (159,758 ) $ 102,006 $ (165,082 ) For the year ended March 31, 2014 Beginning balance Provision recorded Credits processed/ Ending balance Accounts Receivable Reserves Chargebacks $ (22,792 ) $ (310,355 ) $ 286,228 $ (46,919 ) Rebates and Other (94,411 ) (311,405 ) 269,367 (136,449 ) Total $ (117,203 ) $ (621,760 ) $ 555,595 $ (183,368 ) Current Liabilities Returns $ (49,701 ) $ (47,209 ) $ 32,766 $ (64,144 ) Other (1) (27,697 ) (63,780 ) 48,291 (43,186 ) Total $ (77,398 ) $ (110,989 ) $ 81,057 $ (107,330 ) For the year ended March 31, 2013 Beginning balance Provision recorded Credits processed/ Ending balance Accounts Receivable Reserves Chargebacks $ (20,789 ) $ (263,330 ) $ 261,327 $ (22,792 ) Rebates and Other (69,435 ) (192,115 ) 167,139 (94,411 ) Total $ (90,224 ) $ (455,445 ) $ 428,466 $ (117,203 ) Current Liabilities Returns $ (33,426 ) $ (37,977 ) $ 21,702 $ (49,701 ) Other (1) (33,837 ) (43,184 ) 49,324 (27,697 ) Total $ (67,263 ) $ (81,161 ) $ 71,026 $ (77,398 ) (1) Includes indirect rebates. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | March 31, 2015 2014 Raw and packaging materials $ 43,383 $ 41,216 Finished goods 47,122 49,525 Work in progress 26,680 19,250 Purchased products for commercial purposes and other 3,087 7,648 $ 120,272 $ 117,639 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
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, 2015 2014 Cost: Land $ 8,454 $ 8,821 Buildings 147,242 148,881 Leasehold improvements 2,289 2,114 Machinery and equipment 173,680 165,003 Computer equipment 28,304 28,329 Motor vehicles 235 247 Furniture, fixtures and office equipment 9,006 9,216 Advances for property and equipment 356 1,987 369,566 364,598 Accumulated depreciation and impairment charges: Buildings $ 55,037 $ 52,615 Leasehold improvements 1,216 1,250 Machinery and equipment 125,484 124,484 Computer equipment 27,017 27,117 Motor vehicles 185 170 Furniture, fixtures and office equipment 7,582 7,546 216,521 213,182 Depreciated cost $ 153,045 $ 151,416 |
Intangible Assets and Deferre38
Intangible Assets and Deferred Costs (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Deferred Costs | March 31, 2015 2014 Cost: Product and distribution rights $ 77,433 $ 78,366 Deferred charges in respect of debentures from institutional investors 193 193 Other deferred costs 1,541 1,568 79,167 80,127 Accumulated amortization and impairment charges: Product and distribution rights 64,229 61,752 Deferred charges in respect of debentures from institutional investors 192 191 Other deferred costs 1,542 1,542 65,963 63,485 Amortized cost $ 13,204 $ 16,642 |
Long-Term Receivables and Oth39
Long-Term Receivables and Other Assets (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Long-Term Receivables and Other Assets | March 31, 2015 2014 Prepayment of land leased from Israel Land Administration (1) $ 14,273 $ 14,507 Long-term deposits 30,175 36,183 Severance pay fund (2) 1,770 2,085 Long-term security deposit 39 53 Other 73 66 $ 46,330 $ 52,894 (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). This amount was prepaid. See Note 2.j. (2) Under Israeli law, the Company and its Israeli subsidiaries are 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 subsidiaries’ matching contribution to the plan was $976, $1,075 and $987 for the years ended March 31, 2015, 2014 and 2013, respectively. Years ended March 31, 2015 2014 2013 Pension, retirement savings and severance expenses $ 5,979 $ 6,140 $ 6,009 |
Derivative Instruments and Fi40
Derivative Instruments and Financial Risk Management (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
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 NIS and the Canadian dollar against the U.S. dollar and the exchange rates between the U.S. dollar and each of the NIS and the Canadian dollar at the end of the year indicated: Rate of Devaluation (Appreciation) Rate of Exchange of Rate of Inflation Against U.S. Dollar U.S. Dollar Period ended Israel (1) Canada (2) Israel (1) Canada (2) Israel (1) Canada (2) 3/31/2014 1.29 % 1.55 % (4.41 %) 8.84 % 3.49 1.11 3/31/2015 (1.01 %) 1.20 % 14.04 % 14.41 % 3.98 1.27 (1) Per Bank of Israel (2) Per Bank of Canada |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and 2014 were as follows: March 31, 2015 Quoted Market Prices Significant Other of Identical Assets (Level 1) Observable Inputs (Level 2) Assets Marketable securities $ 3,458 $ — Liabilities Interest rate swap $ — $ 655 Forward contracts — 5,449 $ — $ 6,104 March 31, 2014 Quoted Market Prices Significant Other of Identical Assets (Level 1) Observable Inputs (Level 2) Assets Marketable securities $ 3,255 $ — Forward contracts — 679 Cross-currency swaps — 2,245 $ 3,255 $ 2,924 Liabilities Interest rate swap $ — $ 802 Forward contracts — 3,213 $ — $ 4,015 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | a. Other current liabilities: March 31, 2015 2014 Returns reserve $ 109,765 $ 64,144 Accrued income taxes 75,384 27,090 Medicaid and indirect rebates 43,202 32,484 Employees and payroll accruals 18,264 19,498 Accrued expenses 16,999 9,702 Due to customers 12,115 10,702 Derivative instruments 5,449 3,213 Royalties 4,251 2,321 Settlements and loss contingencies 540 26,540 Legal and audit fees 329 496 Deferred taxes 261 343 Deferred revenue 79 19,917 Other 2,975 4,085 $ 289,613 $ 220,535 |
Schedule of Other Long-Term Liabilities | b. Other long-term liabilities: March 31, 2015 2014 Accrued severance pay $ 1,712 $ 1,990 Deferred revenue 983 — Interest rate swap 655 802 Other 130 60 $ 3,480 $ 2,852 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Composition | a. Composed as follows: March 31, 2015 2014 Debentures with institutional investors (1) $ — $ 11,117 Mortgage for U.S. headquarters facility (2) 5,888 6,745 5,888 17,862 Less: current maturities 912 11,974 $ 4,976 $ 5,888 (1) In 2003, the Company entered into two series of loan agreements, subsequently amended, with multiple lenders in Israel. At March 31, 2015 there were no debentures outstanding as they matured in November 2014. At March 31, 2014, the outstanding debentures are comprised of $422 (issued in U.S. dollars) at an interest rate of 6.1% with the remaining debentures of $10.695 (issued in NIS) at a rate of Israeli CPI plus 5.8%. The debentures provided certain undertakings, including (i) not to encumber any of its assets, unless to secure indebtedness, as defined in such agreements, which in the aggregate does not exceed $20,000, or unless to encumber newly acquired assets to secure financing provided to acquire such assets, and (ii) not to incur any additional indebtedness as long as the ratio of EBITDA to total net interest expense and current principal payable on long-term indebtedness is less than 2:1. The test was based on the Company’s audited financial statements, and was performed on April 1 of each year with respect to the prior calendar year. (2) In 2005, Taro U.S.A. and two of its subsidiaries entered into obligations, secured by mortgages on the Company’s U.S. headquarters facility located in New York and distribution facility located in New Jersey (subsequently retired in February 2012). The Company guaranteed these obligations. The mortgage on the New York facility was $5,888 and $6,745 as of March 31, 2015 and 2014, respectively, was for an original term of 15 years, bears interest at the rate of LIBOR plus 1.25%, and has a graduating debt service coverage ratio covenant of 1.90. At March 31, 2015 and 2014, the debt service coverage ratio was 2.30 and 2.25, respectively. The interest rate of this mortgage is effectively fixed at 6.16%, as the Company has an interest rate swap in place which is concurrent with the 15-year term of the mortgage. |
Schedule of Total Amount of Liabilities Classified by Currency, Linkage Terms and Interest Rates | b. Classified by currency, linkage terms and interest rates, the total amount of the liabilities (including current maturities and the reclassified short-term portion) is as follows: Weighted-Average Interest Rate Amount March 31, March 31, 2015 2014 2015 2014 In, or linked to, U.S. dollars (1) 1.43 % 1.72 % $ 5,888 $ 7,167 In Israeli currency – linked to CPI — 5.80 % — 10,695 $ 5,888 $ 17,862 (1) Represents a mortgage loan in the amount of $5,888 and $6,745 as of March 31, 2015 and 2014, respectively, which is subject to variable interest rates linked to LIBOR, however the Company’s interest rate swap entered into concurrently with the mortgage agreement effectively fixes the mortgage rate at a fixed rate of 6.16%. See Note 10.a. The remaining outstanding debt in 2014 was subject to fixed interest rates. |
Schedule of Debt Maturity | c. The debt matures as follows: As of Year Ended March 31, 2015 3/31/2016 $ 912 3/31/2017 969 3/31/2018 1,031 3/31/2019 1,096 3/31/2020 1,166 Thereafter 714 $ 5,888 |
Liabilities Collateralized by44
Liabilities Collateralized by Pledges (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Balance of Liabilities Collateralized by Pledges | Balance of liabilities collateralized by pledges is as follows: March 31, 2015 2014 Mortgage for U.S. headquarters facility $ 5,888 $ 6,745 |
Commitments and Contingent Li45
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
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 2019. The minimum annual rental payments, under non-cancelable lease agreements, are as follows: March 31, 2015 3/31/2016 $ 1,216 3/31/2017 492 3/31/2018 165 3/31/2019 6 Thereafter — $ 1,879 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Federal Home Loan Banks [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity and related information for the year ended March 31, 2015 is as follows: Weighted- average Number of Exercise exercise options price price Outstanding at March 31, 2014 1,000 $ 26.09 $ 26.09 Exercised (1,000 ) 26.09 26.09 Forfeited — — — Granted — — — Outstanding at March 31, 2015 — $ — $ — |
Summary of Net Income Per Share | Net income per share: Year ended March 31, 2015 Year ended March 31, 2014 Year ended March 31, 2013 Net income attributable Per Net income attributable Per Net income attributable Per to Taro Shares Share to Taro Shares Share to Taro Shares Share (numerator) (denominator) Amount (numerator) (denominator) Amount (numerator) (denominator) Amount Basic EPS: $ 484,257 42,833,533 $ 11.31 $ 360,387 44,276,003 $ 8.14 $ 266,206 44,677,603 $ 5.96 Effect of dilutive securities: Stock options — 217 — — 3,121 — — 37,508 — Diluted EPS: $ 484,257 42,833,750 $ 11.31 $ 360,387 44,279,124 $ 8.14 $ 266,206 44,715,111 $ 5.95 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income from Continuing and Discontinued Operations Before Income Taxes | f. Income from continuing and discontinued operations before income taxes is comprised of the following: Year ended March 31, 2015 2014 2013 Domestic (Israel) $ 250,979 $ 190,233 $ 65,934 Foreign (North America, the Cayman Islands, Ireland and the U.K.) 329,914 253,355 268,735 Income from continuing and discontinued operations before taxes $ 580,893 $ 443,588 $ 334,669 |
Components of Taxes on Income | g. Taxes on income are comprised of the following: Year ended March 31, 2015 2014 2013 Current taxes $ 166,466 $ 106,561 $ 93,165 Prior years’ benefits (20 ) (124 ) (6,544 ) Deferred income benefits (70,387 ) (23,708 ) (18,822 ) $ 96,059 $ 82,729 $ 67,799 Domestic $ 25,881 $ 16,852 $ 1,139 Foreign 70,178 65,877 66,660 $ 96,059 $ 82,729 $ 67,799 |
Reconciliation of Statutory Tax Rate of Parent Company to Effective Consolidated Tax Rate | h. Reconciliation of the statutory tax rate of the parent company in Israel to the effective consolidated tax rate: Year ended March 31, 2015 2014 2013 Statutory tax rate (In Israel) 26.5 % 25.0 % 25.0 % (Decrease) increase in effective tax rate due to: Tax benefits from reduced tax rates under benefit programs (7.0 %) (5.0 %) (4.0 %) Different tax rates applicable to non-Israeli subsidiaries (4.0 %) (2.0 %) 1.0 % Uncertain tax positions, net 1.0 % 1.0 % (3.0 %) Taxes (benefits) from prior years 0.0 % 0.0 % 1.0 % Effective consolidated tax rate 16.5 % 19.0 % 20.0 % |
Components of Current Taxes | i. Current taxes are calculated at the following rates: Year ended March 31, 2015 2014 2013 On Israeli operations (not including “Approved Enterprise”) 26.5 % 25.0 % 25.0 % On U.S. operations * 35.5 % 35.0 % 35.0 % On Canadian operations * 25.0 % 25.0 % 25.0 % On U.K. operations * 21.0 % 23.0 % 24.0 % On Ireland operations * 12.5 % 12.5 % 12.5 % * The U.S., Canadian, U.K., and Irish 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, 2015 2014 Deferred tax assets: Net operating loss carryforward $ 10,379 $ 12,347 Deferred revenue 34,834 23,343 Property, plant, and equipment 921 1,224 Accrued expenses 131,524 91,603 Bad debt allowance 39 38 Amortization and impairment 5,406 5,917 Other, net 32,259 12,695 Total deferred tax assets 215,362 147,167 Valuation allowance for deferred tax assets (11,301 ) (13,573 ) Net deferred tax assets 204,061 133,594 Deferred tax liabilities: Property, plant, and equipment (1,901 ) (1,739 ) Other, net (261 ) (343 ) Total deferred tax liabilities (2,162 ) (2,082 ) Net deferred tax assets $ 201,899 $ 131,512 Domestic $ 12,721 $ 9,990 Foreign 189,178 121,522 $ 201,899 $ 131,512 |
Schedule of Deferred Income Taxes Presented in Balance Sheet | The deferred income taxes are presented in the balance sheet as follows: March 31, 2015 2014 Among current assets (“other receivables and prepaid expenses”) $ 199,908 $ 128,689 Long-term deferred income tax assets 4,153 4,905 Among short-term liabilities (261 ) (343 ) Among long-term liabilities (1,901 ) (1,739 ) $ 201,899 $ 131,512 |
Schedule of Uncertain Tax Positions | p. Uncertain tax positions: March 31, 2015 2014 2013 Unrecognized tax exposure at beginning of year $ 6,858 $ 6,634 $ 13,828 Increases as a result of positions taken in prior period 129 146 1,912 Decreases as a result of positions taken in prior period (462 ) (1,815 ) (115 ) Increases as a result of positions taken in current period 2,501 1,893 1,495 Decreases due to settlements with tax authorities (60 ) — (10,216 ) Decreases due to expiration of statute of limitations — — (270 ) Unrecognized tax exposure at end of year $ 8,966 $ 6,858 $ 6,634 |
Selected Statements of Income48
Selected Statements of Income Data (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Selected Statements of Income Data | Years ended March 31, 2015 2014 2013 Sales by location of customers : U.S.A. $ 777,191 $ 669,481 $ 587,851 Canada 55,452 56,718 52,452 Israel 22,157 22,917 19,929 Other 8,144 10,169 10,722 $ 862,944 $ 759,285 $ 670,954 Selling, marketing, general and administrative expenses: Selling and marketing $ 44,617 $ 46,343 $ 43,938 Advertising 8,370 9,787 7,213 General and administrative * 34,657 35,603 35,287 Settlements and loss contingencies (4,200 ) 2,590 33,300 $ 83,444 $ 94,323 $ 119,738 * Including provision for doubtful accounts $ 16 $ 25 $ 4 Financial (income) expenses: Interest and exchange differences on long-term liabilities $ 928 $ 1,515 $ 2,512 Income in respect of deposits (10,605 ) (6,683 ) (4,026 ) Expenses in respect of short-term credit — 1 — Foreign currency transaction losses (41,634 ) (7,118 ) (2,417 ) $ (51,311 ) $ (12,285 ) $ (3,931 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Area Information | a. Geographic Area Information: Israel Canada* U.S.A. Other Consolidated Year ended March 31, and as of March 31, 2015: Sales to unaffiliated customers ** $ 22,157 $ 55,452 $ 777,191 $ 8,144 $ 862,944 Long-lived assets *** $ 88,804 $ 46,876 $ 36,755 $ 1,020 $ 173,455 Year ended March 31, 2014 and as of March 31, 2014: Sales to unaffiliated customers ** $ 22,917 $ 56,718 $ 669,481 $ 10,169 $ 759,285 Long-lived assets *** $ 90,676 $ 44,165 $ 39,140 $ 1,325 $ 175,306 Year ended March 31, 2013 and as of March 31, 2013: Sales to unaffiliated customers ** $ 19,929 $ 52,452 $ 587,851 $ 10,722 $ 670,954 Long-lived assets *** $ 87,912 $ 38,614 $ 40,383 $ 1,240 $ 168,149 * Includes operations in both Canada and Cayman Islands. ** Based on customer’s location. *** 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, 2015, 2014 and 2013, were as follows: Year ended March 31, Category 2015 2014 2013 Dermatological and topical 66 % 73 % 77 % Neuropsychiatric 16 % 14 % 9 % Cardiovascular 8 % 6 % 6 % Anti-inflammatory 5 % 4 % 4 % Other 5 % 3 % 4 % Total 100 % 100 % 100 % |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | b. The following is the detail of discontinued operations: Year ended March 31, 2015 2014 2013 Sales, net $ — $ — $ — Cost of sales (276 ) (220 ) (1,170 ) Gross loss (276 ) (220 ) (1,170 ) Operating expenses: Research and development (2 ) — (10 ) Selling, marketing, general and administrative (167 ) (182 ) (216 ) Operating loss (445 ) (402 ) (1,396 ) Financial (expenses) income, net (347 ) 162 (213 ) Other income, net 2 2 415 Loss before income taxes (790 ) (238 ) (1,194 ) Tax benefit (expense) 3 (81 ) — Net loss from discontinued operations $ (787 ) $ (319 ) $ (1,194 ) |
General - Additional Informatio
General - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | |
General [Line Items] | |||
Treasury stock, shares repurchased | 1,959,514 | ||
Treasury stock, price per share | $ 97.50 | ||
Treasury stock, aggregate purchase price | $ 193,000 | $ 194,328 | $ 194,328 |
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 | 68.90% | ||
Vote attributable to share equity | 79.20% |
Significant Accounting Polici52
Significant Accounting Policies - Additional Information (Detail) | Mar. 31, 2015USD ($)Derivative | Mar. 31, 2015USD ($)DerivativeSegmentshares | Mar. 31, 2014USD ($)Derivativeshares | Mar. 31, 2013USD ($)shares | Mar. 31, 2012USD ($) |
Significant Accounting Policies [Line Items] | |||||
Percentage of shares having economic rights owned by Sun | 3.125% | 3.125% | |||
Percentage of shares having voting rights owned by Sun | 50.00% | 50.00% | |||
Bank deposits average interest rate | 0.93% | 0.93% | 1.21% | ||
Marketable securities owned or sold | $ 0 | $ 0 | $ 0 | ||
Number of operating segments | Segment | 1 | ||||
Unrecognized tax benefits | $ 8,966,000 | $ 8,966,000 | 6,858,000 | 6,634,000 | $ 13,828,000 |
Acquired intangible assets weighted-average useful life | 14 years | ||||
Long-lived assets impairment loss | $ 90,000 | 47,000 | 969,000 | ||
Grants earned | 0 | 0 | 0 | ||
Advertising expenses | 8,370,000 | 9,787,000 | 7,213,000 | ||
Shipping and handling costs | $ 10,900,000 | $ 10,800,000 | $ 9,830,000 | ||
Number of options granted | shares | 0 | 0 | 0 | ||
Trade Accounts Receivable [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of customers | Three | ||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of customers represent trade accounts receivable | 25.30% | ||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of customers represent trade accounts receivable | 24.90% | ||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of customers represent trade accounts receivable | 16.00% | ||||
Not Designated as Hedging Instrument [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of derivative instruments not designated as hedging instruments | Derivative | 0 | 0 | 0 | ||
Software and Software Development Costs [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Capitalized software cost | $ 4,510,000 | $ 4,569,000 | |||
Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Lease period | 2,018 | ||||
Lease agreements for an additional period | 49 years | ||||
Tax benefit percentage | 50.00% | ||||
Minimum [Member] | Leasehold Improvements [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Lease period | 2,060 | ||||
Lease agreements for an additional period | 98 years | ||||
Maximum [Member] | Leasehold Improvements [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 10 years |
Significant Accounting Polici53
Significant Accounting Policies - Schedule of Annual Depreciation Rates of Property, Plant and Equipment (Detail) | Mar. 31, 2015 |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 10.00% |
Furniture, Fixtures, Office Equipment and Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 20.00% |
Minimum [Member] | Buildings [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 | 5.00% |
Minimum [Member] | Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 15.00% |
Minimum [Member] | Furniture, Fixtures, Office Equipment and Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 6.00% |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 10.00% |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 20.00% |
Maximum [Member] | Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 20.00% |
Maximum [Member] | Furniture, Fixtures, Office Equipment and Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of assets at annual rates | 33.00% |
Short-Term Investments - Summar
Short-Term Investments - Summary of Marketable Securities (Detail) - Government Debentures [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 3,375 | $ 3,304 |
Unrealized gain | 83 | (49) |
Market value | $ 3,458 | $ 3,255 |
Short-Term Investments - Estima
Short-Term Investments - Estimated Fair Value of Available-for-sale Investments by Contractual Maturity (Detail) - Government Debentures [Member] - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale government debentures, Cost | $ 3,375 | $ 3,304 |
Available-for-sale government debentures, Market Value | 3,458 | 3,255 |
Matures in Less than Five Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale government debentures, Cost | 486 | 116 |
Available-for-sale government debentures, Market Value | 435 | 309 |
Matures in More than Five Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale government debentures, Cost | 2,889 | 3,188 |
Available-for-sale government debentures, Market Value | $ 3,023 | $ 2,946 |
Accounts Receivable and Other -
Accounts Receivable and Other - Components of Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Receivables [Abstract] | ||
Trade accounts receivable, gross | $ 459,774 | $ 322,140 |
Reserves for sales deductions: | ||
Chargebacks | (64,119) | (46,919) |
Customer rebates | (79,115) | (58,593) |
Other sales deductions | (93,954) | (77,713) |
Allowance for doubtful accounts | (159) | (143) |
Trade accounts receivable, net | $ 222,427 | $ 138,772 |
Accounts Receivable and Other57
Accounts Receivable and Other - Components of Other Receivables and Prepaid Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Receivables [Abstract] | ||
Deferred income taxes | $ 199,908 | $ 128,689 |
Note receivable | 35,000 | |
Prepaid expenses | 7,988 | 7,851 |
Interest receivable | 3,574 | 2,011 |
Advances to suppliers | 2,690 | 1,101 |
Government authorities | 1,260 | 19,508 |
Derivative instruments | 2,924 | |
Other | 491 | 308 |
Other receivables and prepaid expenses | $ 250,911 | $ 162,392 |
Sales Incentives - Additional I
Sales Incentives - Additional Information (Detail) - 12 months ended Mar. 31, 2015 - Customer | Total |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Largest wholesale customers | 3 |
Cash discount | 2.00% |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period of return of inventory | 3 months |
Shelf life of products | 18 months |
Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period of return of inventory | 6 months |
Shelf life of products | 36 months |
Sales Incentives - Sales Deduct
Sales Incentives - Sales Deductions and Product Returns (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Accounts Receivable Reserves [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | $ (183,368) | $ (117,203) | $ (90,224) |
Provision recorded for current period sales | (1,216,381) | (621,760) | (455,445) |
Credits processed/Payments | 1,162,402 | 555,595 | 428,466 |
Ending balance | (237,347) | (183,368) | (117,203) |
Accounts Receivable Reserves [Member] | Chargebacks [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | (46,919) | (22,792) | (20,789) |
Provision recorded for current period sales | (772,584) | (310,355) | (263,330) |
Credits processed/Payments | 755,384 | 286,228 | 261,327 |
Ending balance | (64,119) | (46,919) | (22,792) |
Accounts Receivable Reserves [Member] | Rebates and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | (136,449) | (94,411) | (69,435) |
Provision recorded for current period sales | (443,797) | (311,405) | (192,115) |
Credits processed/Payments | 407,018 | 269,367 | 167,139 |
Ending balance | (173,228) | (136,449) | (94,411) |
Current Liabilities [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | (107,330) | (77,398) | (67,263) |
Provision recorded for current period sales | (159,758) | (110,989) | (81,161) |
Credits processed/Payments | 102,006 | 81,057 | 71,026 |
Ending balance | (165,082) | (107,330) | (77,398) |
Current Liabilities [Member] | Returns [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | (64,144) | (49,701) | (33,426) |
Provision recorded for current period sales | (85,990) | (47,209) | (37,977) |
Credits processed/Payments | 40,369 | 32,766 | 21,702 |
Ending balance | (109,765) | (64,144) | (49,701) |
Current Liabilities [Member] | Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | (43,186) | (27,697) | (33,837) |
Provision recorded for current period sales | (73,768) | (63,780) | (43,184) |
Credits processed/Payments | 61,637 | 48,291 | 49,324 |
Ending balance | $ (55,317) | $ (43,186) | $ (27,697) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw and packaging materials | $ 43,383 | $ 41,216 |
Finished goods | 47,122 | 49,525 |
Work in progress | 26,680 | 19,250 |
Purchased products for commercial purposes and other | 3,087 | 7,648 |
Inventories | $ 120,272 | $ 117,639 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Reserves recorded against inventories | $ 16,031,000 | $ 14,190,000 |
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, 2015 | Mar. 31, 2014 |
Cost: | ||
Cost of property, plant and equipment | $ 369,566 | $ 364,598 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 216,521 | 213,182 |
Depreciated cost | 153,045 | 151,416 |
Land [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 8,454 | 8,821 |
Buildings [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 147,242 | 148,881 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 55,037 | 52,615 |
Leasehold Improvements [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 2,289 | 2,114 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 1,216 | 1,250 |
Machinery and Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 173,680 | 165,003 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 125,484 | 124,484 |
Computer Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 28,304 | 28,329 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 27,017 | 27,117 |
Motor Vehicles [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 235 | 247 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 185 | 170 |
Furniture, Fixtures and Office Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | 9,006 | 9,216 |
Accumulated depreciation and impairment charges: | ||
Accumulated depreciation and impairment charges | 7,582 | 7,546 |
Advances for Property and Equipment [Member] | ||
Cost: | ||
Cost of property, plant and equipment | $ 356 | $ 1,987 |
Property, Plant and Equipment63
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 12,480,000 | $ 12,950,000 | $ 14,329,000 |
Capitalized interest, incremental and other internal costs | 16,832,000 | 16,832,000 | |
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 | $ 4,510,000 | $ 4,569,000 |
Intangible Assets and Deferre64
Intangible Assets and Deferred Costs - Schedule of Intangible Assets and Deferred Costs (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Cost: | ||
Product and distribution rights, cost | $ 77,433 | $ 78,366 |
Deferred charges in respect of debentures from institutional investors, cost | 193 | 193 |
Other deferred costs, cost | 1,541 | 1,568 |
Intangible assets and deferred costs, cost | 79,167 | 80,127 |
Accumulated amortization and impairment charges: | ||
Product and distribution rights, accumulated amortization | 64,229 | 61,752 |
Deferred charges in respect of debentures from institutional investors, accumulated amortization | 192 | 191 |
Other deferred costs, accumulated amortization | 1,542 | 1,542 |
Intangible assets and deferred costs, accumulated amortization | 65,963 | 63,485 |
Amortized cost | $ 13,204 | $ 16,642 |
Intangible Assets and Deferre65
Intangible Assets and Deferred Costs - Additional Information (Detail) - Product and Distribution Rights [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 3,318 | $ 3,617 | $ 3,436 |
Estimated amortization expense, 2016 | 3,201 | ||
Estimated amortization expense, 2017 | 2,718 | ||
Estimated amortization expense, 2018 | 2,263 | ||
Estimated amortization expense, 2019 | 853 | ||
Estimated amortization expense, 2020 | $ 544 | ||
Weighted-average amortization period | 7 years |
Long-Term Receivables and Oth66
Long-Term Receivables and Other Assets - Schedule of Long-Term Receivables and Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepayment of land leased from Israel Land Administration | $ 14,273 | $ 14,507 |
Long-term deposits | 30,175 | 36,183 |
Severance pay fund | 1,770 | 2,085 |
Long-term security deposit | 39 | 53 |
Other | 73 | 66 |
Total long-term receivables and other assets | $ 46,330 | $ 52,894 |
Long-Term Receivables and Oth67
Long-Term Receivables and Other Assets - Schedule of Long-Term Receivables and Other Assets (Parenthetical) (Detail) | 12 Months Ended |
Mar. 31, 2015 | |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Lease agreements for an additional period | 49 years |
Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Lease agreements for an additional period | 98 years |
Long-Term Receivables and Oth68
Long-Term Receivables and Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Receivables [Abstract] | |||
Contribution to defined retirement savings plan | $ 976 | $ 1,075 | $ 987 |
Long-Term Receivables and Oth69
Long-Term Receivables and Other Assets - Pension, Retirement Savings and Severance Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Pension, retirement savings and severance expenses | $ 5,979 | $ 6,140 | $ 6,009 |
Derivative Instruments and Fi70
Derivative Instruments and Financial Risk Management - Additional Information (Detail) ₪ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2011USD ($) | Nov. 30, 2008ILS (₪)Payments | Nov. 30, 2003ILS (₪) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Nov. 30, 2008USD ($) | Sep. 30, 2005 | Nov. 30, 2003USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Fair market value of swap | $ 655 | $ 802 | |||||||
CPI-adjusted term loan | ₪ 210,800 | $ 51,344 | |||||||
Annual interest rate | 6.59% | 5.80% | |||||||
Term of derivative instrument | 11 years | ||||||||
Swap maturity date | Nov. 28, 2008 | ||||||||
Annual swap payments | ₪ | ₪ 201,270 | ||||||||
Number of annual payments | Payments | 6 | ||||||||
Forward Contracts [Member] | Israeli Shekel [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
(Loss) gain on derivative instruments | $ (4,590) | 2,190 | $ 990 | ||||||
Forward contracts purchase amount | $ 26,167 | ||||||||
Forward Contracts [Member] | Canadian Dollars [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
(Loss) gain on derivative instruments | 901 | 4,421 | 1,303 | ||||||
Forward contracts purchase amount | 24,900 | ||||||||
Interest Rate Swap [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Mortgage fixed interest rate | 6.16% | ||||||||
(Loss) gain on derivative instruments | (150) | 68 | (242) | ||||||
Unrealized gain (loss) on derivative instruments | 147 | 404 | 127 | ||||||
First Four Months Purchase Period [Member] | Forward Contracts [Member] | Israeli Shekel [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Forward contracts purchase amount | $ 3,542 | ||||||||
First Four Months Purchase Period [Member] | Forward Contracts [Member] | Canadian Dollars [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Forward contracts purchase amount | 6,225 | ||||||||
Remaining Six Months Purchase Period [Member] | Forward Contracts [Member] | Israeli Shekel [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Forward contracts purchase amount | $ 2,000 | ||||||||
CPI-adjusted Currency Swap [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
CPI-adjusted term loan | $ 47,190 | ||||||||
CPI-adjusted agreement period | 5 years | ||||||||
Interest Rate Swap One [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Annual interest rate | 5.90% | ||||||||
USD/NIS, CPI-Adjusted Currency Swap [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
CPI-adjusted agreement period | 6 years | ||||||||
Net (loss) gain recorded within financial income | $ (1,117) | 1,025 | $ 255 | ||||||
Other Receivables and Prepaid Expenses [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Fair market value of the swap | $ 2,924 |
Derivative Instruments and Fi71
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, 2015 | Mar. 31, 2014 | |
Israel [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Rate of Inflation | (1.01%) | 1.29% |
Rate of Devaluation (Appreciation) Against U.S. Dollar | 14.04% | (4.41%) |
Rate of Exchange of U.S. Dollar | 3.98 | 3.49 |
Canada [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Rate of Inflation | 1.20% | 1.55% |
Rate of Devaluation (Appreciation) Against U.S. Dollar | 14.41% | 8.84% |
Rate of Exchange of U.S. Dollar | 1.27 | 1.11 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurement on a Recurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Quoted Market Prices of Identical Assets (Level1) [Member] | ||
Assets | ||
Fair value of assets | $ 3,255 | |
Quoted Market Prices of Identical Assets (Level1) [Member] | Marketable Securities [Member] | ||
Assets | ||
Fair value of assets | $ 3,458 | 3,255 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Fair value of assets | 2,924 | |
Liabilities | ||
Fair value of liabilities | 6,104 | 4,015 |
Significant Other Observable Inputs (Level 2) [Member] | Forward Contracts [Member] | ||
Assets | ||
Fair value of assets | 679 | |
Liabilities | ||
Fair value of liabilities | 5,449 | 3,213 |
Significant Other Observable Inputs (Level 2) [Member] | Cross-Currency Swaps [Member] | ||
Assets | ||
Fair value of assets | 2,245 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member] | ||
Liabilities | ||
Fair value of liabilities | $ 655 | $ 802 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Returns reserve | $ 109,765 | $ 64,144 |
Accrued income taxes | 75,384 | 27,090 |
Medicaid and indirect rebates | 43,202 | 32,484 |
Employees and payroll accruals | 18,264 | 19,498 |
Accrued expenses | 16,999 | 9,702 |
Due to customers | 12,115 | 10,702 |
Derivative instruments | 5,449 | 3,213 |
Royalties | 4,251 | 2,321 |
Settlements and loss contingencies | 540 | 26,540 |
Legal and audit fees | 329 | 496 |
Deferred taxes | 261 | 343 |
Deferred revenue | 79 | 19,917 |
Other | 2,975 | 4,085 |
Other current liabilities | $ 289,613 | $ 220,535 |
Other Liabilities - Schedule 74
Other Liabilities - Schedule of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued severance pay | $ 1,712 | $ 1,990 |
Deferred revenue | 983 | |
Interest rate swap | 655 | 802 |
Other | 130 | 60 |
Other long-term liabilities | $ 3,480 | $ 2,852 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt Composition (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,888 | $ 17,862 |
Less: current maturities | 912 | 11,974 |
Long-term debt Net | 4,976 | 5,888 |
New York [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loan | $ 5,888 | 6,745 |
Debentures with Institutional Investors [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 11,117 |
Long-Term Debt - Schedule of 76
Long-Term Debt - Schedule of Debt Composition (Parenthetical) (Detail) | 12 Months Ended | |
Mar. 31, 2015USD ($)SecurityLoan | Mar. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Number of loan agreements | SecurityLoan | 2 | |
Debentures outstanding | $ 0 | $ 422,000 |
Debt maturity date | 2014-11 | |
Secured indebtedness, maximum amount | $ 20,000,000 | |
Ratio of EBITDA to total net interest expense and current principal payable on long-term indebtedness | Less than 2:1 | |
Debt service coverage ratio | 2.30 | 2.25 |
New York [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate added to the reference rate | 1.25% | |
Reference rate | LIBOR | |
Mortgage loan | $ 5,888,000 | $ 6,745,000 |
Mortgage term | 15 years | |
Debt service coverage ratio | 1.90 | |
Effective interest rate of mortgage loan fixed | 6.16% | |
Interest rate swap of mortgage term | 15 years | |
In, or Linked to, U.S. dollars [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.10% | |
In Israeli Currency - linked to CPI [Member] | ||
Debt Instrument [Line Items] | ||
Remaining debentures outstanding | $ 10,695,000 | |
Interest rate added to the reference rate | 5.80% | |
Reference rate | Israeli CPI |
Long-Term Debt - Schedule of To
Long-Term Debt - Schedule of Total Amount of Liabilities Classified by Currency, Linkage Terms and Interest Rates (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt, amount | $ 5,888 | $ 17,862 |
In, or Linked to, U.S. dollars [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, amount | $ 5,888 | $ 7,167 |
Long-term debt, weighted-average interest rate | 1.43% | 1.72% |
In Israeli Currency - linked to CPI [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, amount | $ 10,695 | |
Long-term debt, weighted-average interest rate | 5.80% |
Long-Term Debt - Schedule of 78
Long-Term Debt - Schedule of Total Amount of Liabilities Classified by Currency, Linkage Terms and Interest Rates (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2005 |
Debt Instrument [Line Items] | |||
Variable interest bearing mortgage loans | $ 5,888 | $ 6,745 | |
Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage fixed interest rate | 6.16% |
Long-Term Debt - Schedule of 79
Long-Term Debt - Schedule of Debt Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ||
3/31/2016 | $ 912 | |
3/31/2017 | 969 | |
3/31/2018 | 1,031 | |
3/31/2019 | 1,096 | |
3/31/2020 | 1,166 | |
Thereafter | 714 | |
Total | $ 5,888 | $ 17,862 |
Liabilities Collateralized by80
Liabilities Collateralized by Pledges - Balance of Liabilities Collateralized by Pledges (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Mortgage for U.S. headquarters facility | $ 5,888 | $ 17,862 |
Collateralized by Pledges [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Mortgage for U.S. headquarters facility | $ 5,888 | $ 6,745 |
Commitments and Contingent Li81
Commitments and Contingent Liabilities - Schedule of Minimum Annual Rental Payments, under Non-Cancelable Lease Agreements (Detail) $ in Thousands | Mar. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
3/31/2016 | $ 1,216 |
3/31/2017 | 492 |
3/31/2018 | 165 |
3/31/2019 | 6 |
Thereafter | 0 |
Total minimum annual rental payments, under non-cancelable lease agreements | $ 1,879 |
Commitments and Contingent Li82
Commitments and Contingent Liabilities - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2014USD ($) | Sep. 30, 2013USD ($) | May. 31, 2010USD ($) | Mar. 31, 2015USD ($)Plaintiff | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | |
Commitments And Contingent Liabilities [Line Items] | ||||||
Rent expenses | $ 2,576 | $ 3,245 | $ 3,479 | |||
Aggregate contingent liability to the Office of the Chief Scientist | 11,624 | 11,320 | ||||
Royalty payments to the Office of the Chief Scientist | $ 38 | $ 0 | $ 0 | |||
Certification notice letter | the Company received from Perrigo Israel Pharmaceuticals Ltd. (“Perrigo”) two Paragraph IV certification notice letters indicating that Perrigo had submitted to the FDA an ANDA seeking approval to manufacture and sell a generic version of Topicort® topical spray prior to expiration of the Company’s U.S. Patent Nos. 8,277,780 (the “’780 Patent”), expiring on April 23, 2028 and 8,1715,624 (the “624 Patent”), expiring on May 26, 2026, and prior to the expiration of U.S. Patent No. 5,990,100 (the “’100 Patent”), expiring March 24, 2018, to which the Company has a license. | |||||
Number of actions brought against various pharmaceutical | Plaintiff | 2 | |||||
Provision recorded for AWP-related matters | $ 6,500 | |||||
Percent of the weighted-average of the average manufacturer prices | 175.00% | |||||
Special collective bargaining agreement date | Jan. 23, 2013 | |||||
Collective Bargaining Arrangements [Member] | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Employees Committee Agreement term | 5 years | |||||
Employees Committee Agreement renewal term | 2 years | |||||
Louisiana [Member] | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Settlement amount | $ 6,100 | |||||
TEXAS | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Settlement amount | $ 19,500 | |||||
Glenmark Generics Ltd [Member] | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Upfront payment for distribution rights | $ 2,500 | |||||
Additional payment upon first shipment to customers | 2,500 | |||||
Payments to license and supply agreement | $ 5,000 | |||||
Period of amortization of up-front payment | 6 years | |||||
624 Patent [Member] | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Patent expiration date | May 26, 2026 | |||||
Minimum [Member] | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Percentage of royalty payments to the government of Israel | 3.00% | |||||
Maximum [Member] | ||||||
Commitments And Contingent Liabilities [Line Items] | ||||||
Percentage of royalty payments to the government of Israel | 3.50% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2015USD ($)shares | Mar. 31, 2014USD ($)$ / sharesshares | Mar. 31, 2013USD ($)shares | Mar. 31, 2015₪ / shares | Mar. 31, 2014₪ / shares | |
Shareholders Equity [Line Items] | |||||
Percentage of the rights to profits allocated to ordinary shares | 100.00% | ||||
Percentage of the dissolution rights allocated to ordinary shares | 100.00% | ||||
Number of shares outstanding | 1,000 | ||||
Aggregate amount of option granted | 0 | 0 | 0 | ||
Common stock par value | ₪ / shares | ₪ 0.0001 | ₪ 0.0001 | |||
Option exercised | 1,000 | 23,700 | 291,555 | ||
Options exercise with intrinsic value | $ | $ 85 | $ 557 | $ 5,286 | ||
Share-based compensation expense | $ | $ 0 | $ 0 | $ 8 | ||
Number of options outstanding/exercisable | 0 | 1,000 | |||
Weighted-average exercise prices for options exercisable | $ / shares | $ 26.09 | ||||
Loss from foreign currency translation adjustments | $ | $ (111,149) | $ (22,996) | |||
Unrealized gain from available for sale securities | $ | $ 183 | $ 100 | |||
1999 Stock Incentive Plan [Member] | |||||
Shareholders Equity [Line Items] | |||||
Percentage of options granted with exercise price | 100.00% | ||||
Period of expiry of the option granted | 10 years | ||||
Maximum aggregate amount of options granted | 2,100,000 | ||||
Number of shares outstanding | 0 | 1,000 | |||
Aggregate amount of option granted | 0 | ||||
Common stock par value | ₪ / shares | ₪ 0.0001 | ||||
1999 Stock Incentive Plan [Member] | Minimum [Member] | |||||
Shareholders Equity [Line Items] | |||||
Period of vesting for the options granted | 4 years | ||||
1999 Stock Incentive Plan [Member] | Maximum [Member] | |||||
Shareholders Equity [Line Items] | |||||
Period of vesting for the options granted | 5 years | ||||
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 | ||||
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 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Number of options Outstanding, Beginning Balance | 1,000 | ||
Number of options, Exercised | (1,000) | (23,700) | (291,555) |
Number of options, Forfeited | 0 | ||
Number of options, Granted | 0 | 0 | 0 |
Number of options Outstanding, Ending Balance | 1,000 | ||
Exercise price, Outstanding, Beginning Balance | $ 26.09 | ||
Exercise price, Exercised | 26.09 | ||
Exercise price, Forfeited | 0 | ||
Exercise price, Granted | 0 | ||
Exercise price, Outstanding, Ending Balance | $ 26.09 | ||
Weighted-average exercise price, Beginning Balance | 26.09 | ||
Weighted-average exercise price, Exercised | 26.09 | ||
Weighted-average exercise price, Forfeited | 0 | ||
Weighted-average exercise price, Granted | $ 0 | ||
Weighted-average exercise price, Ending Balance | $ 26.09 |
Shareholders' Equity - Summar85
Shareholders' Equity - Summary of Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net income attributable to Taro | $ 484,257 | $ 360,387 | $ 266,206 |
Basic weighted average number of common shares outstanding | 42,833,533 | 44,276,003 | 44,677,603 |
Diluted weighted average number of common shares outstanding | 42,833,750 | 44,279,124 | 44,715,111 |
Basic EPS | $ 11.31 | $ 8.14 | $ 5.96 |
Diluted EPS | $ 11.31 | $ 8.14 | $ 5.95 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Effect of dilutive securities | 217 | 3,121 | 37,508 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | |||
Mar. 31, 2015USD ($)Plans | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Mar. 31, 2012USD ($) | |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Applicable corporate income tax rate | 26.50% | 25.00% | 25.00% | |
Number of active plans | Plans | 3 | |||
Uniform tax rate | 26.50% | 25.00% | 25.00% | |
Tax benefits relating to investment tax credits | $ 909,000 | $ 1,439,000 | $ 1,320,000 | |
Deferred income taxes of undistributed earnings | 766,152,000 | |||
Amount of interest and penalties recognized on the consolidated statement of operations | (230,000) | 751,000 | (2,730,000) | |
Amount of interest and penalties recognized on the consolidated balance sheet | 550,000 | 2,567,000 | ||
Amount of unrecognized tax benefits | $ 8,966,000 | $ 6,858,000 | $ 6,634,000 | $ 13,828,000 |
Industrial Company [Member] | Israel Designated as Development Zone A [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Uniform tax rate | 9.00% | |||
Industrial Company [Member] | Elsewhere in Israel [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Uniform tax rate | 16.00% | |||
Special Industrial Companies [Member] | Israel Designated as Development Zone A [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Uniform tax rate | 5.00% | |||
Special Industrial Companies [Member] | Elsewhere in Israel [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Uniform tax rate | 8.00% | |||
Plan (3-4) [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Corporate tax exemption period | 2 years | |||
Additional corporate tax exemption period | 13 years | |||
Plan 5 [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 | |||
Plan 6 [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 | |||
Approved Enterprises [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Number of active plans | Plans | 2 | |||
Benefited Enterprise [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Number of active plans | Plans | 1 | |||
Israel [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Net operating losses carryforward | $ 0 | |||
Israel [Member] | Capital Losses Carryforward [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Carryforward losses | $ 74,000,000 | |||
Minimum [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 10.00% | |||
Minimum [Member] | Plan (3-4) [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 10.00% | |||
Minimum [Member] | Plan 5 [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 10.00% | |||
Minimum [Member] | Plan 6 [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 10.00% | |||
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 | 90.00% | |||
Maximum [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 25.00% | |||
Dividends subject to withholding tax rate | 20.00% | |||
Maximum [Member] | Plan (3-4) [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 25.00% | |||
Maximum [Member] | Plan 5 [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 25.00% | |||
Maximum [Member] | Plan 6 [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Reduction in tax rates | 25.00% | |||
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 | 49.00% | |||
U.K. Operations [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Carryforward losses | $ 10,638,000 | |||
Irish Operations [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Carryforward losses | 68,185,000 | |||
Canadian Operations [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Carryforward losses | 0 | |||
U.S. Operations [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Carryforward losses | 0 | |||
Hungarian Operations [Member] | ||||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | ||||
Carryforward losses | $ 0 |
Income Taxes - Income from Cont
Income Taxes - Income from Continuing and Discontinued Operations Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Income from continuing and discontinued operations before taxes | $ 580,893 | $ 443,588 | $ 334,669 |
Domestic (Israel) [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Income from continuing and discontinued operations before taxes | 250,979 | 190,233 | 65,934 |
Foreign (North America, the Cayman Islands, Ireland and the U.K.) [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Income from continuing and discontinued operations before taxes | $ 329,914 | $ 253,355 | $ 268,735 |
Income Taxes - Components of Ta
Income Taxes - Components of Taxes on Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 166,466 | $ 106,561 | $ 93,165 |
Prior years' benefits | (20) | (124) | (6,544) |
Deferred income benefits | (70,387) | (23,708) | (18,822) |
Tax expense | 96,059 | 82,729 | 67,799 |
Tax expense alternative | |||
Domestic | 25,881 | 16,852 | 1,139 |
Foreign | 70,178 | 65,877 | 66,660 |
Tax expense | $ 96,059 | $ 82,729 | $ 67,799 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Rate of Parent Company to Effective Consolidated Tax Rate (Detail) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate (In Israel) | 26.50% | 25.00% | 25.00% |
(Decrease) increase in effective tax rate due to: | |||
Tax benefits from reduced tax rates under benefit programs | (7.00%) | (5.00%) | (4.00%) |
Different tax rates applicable to non-Israeli subsidiaries | (4.00%) | (2.00%) | 1.00% |
Uncertain tax positions, net | 1.00% | 1.00% | (3.00%) |
Taxes (benefits) from prior years | 0.00% | 0.00% | 1.00% |
Effective consolidated tax rate | 16.50% | 19.00% | 20.00% |
Income Taxes - Components of Cu
Income Taxes - Components of Current Taxes (Detail) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 16.50% | 19.00% | 20.00% |
Israel [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 26.50% | 25.00% | 25.00% |
U.S.A. [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 35.50% | 35.00% | 35.00% |
Canada [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 25.00% | 25.00% | 25.00% |
U.K. [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 21.00% | 23.00% | 24.00% |
Ireland [Member] | |||
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | |||
Current taxes | 12.50% | 12.50% | 12.50% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 10,379 | $ 12,347 |
Deferred revenue | 34,834 | 23,343 |
Property, plant, and equipment | 921 | 1,224 |
Accrued expenses | 131,524 | 91,603 |
Bad debt allowance | 39 | 38 |
Amortization and impairment | 5,406 | 5,917 |
Other, net | 32,259 | 12,695 |
Total deferred tax assets | 215,362 | 147,167 |
Valuation allowance for deferred tax assets | (11,301) | (13,573) |
Net deferred tax assets | 204,061 | 133,594 |
Deferred tax liabilities: | ||
Property, plant, and equipment | (1,901) | (1,739) |
Other, net | (261) | (343) |
Total deferred tax liabilities | (2,162) | (2,082) |
Net deferred tax assets | 201,899 | 131,512 |
Net deferred tax assets alternative | ||
Domestic | 12,721 | 9,990 |
Foreign | 189,178 | 121,522 |
Net deferred tax assets | $ 201,899 | $ 131,512 |
Income Taxes - Schedule of De92
Income Taxes - Schedule of Deferred Income Taxes Presented in Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Among current assets ("other receivables and prepaid expenses") | $ 199,908 | $ 128,689 |
Long-term deferred income tax assets | 4,153 | 4,905 |
Among short-term liabilities | (261) | (343) |
Among long-term liabilities | (1,901) | (1,739) |
Net deferred tax assets | $ 201,899 | $ 131,512 |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax exposure at beginning of year | $ 6,858 | $ 6,634 | $ 13,828 |
Increases as a result of positions taken in prior period | 129 | 146 | 1,912 |
Decreases as a result of positions taken in prior period | (462) | (1,815) | (115) |
Increases as a result of positions taken in current period | 2,501 | 1,893 | 1,495 |
Decreases due to settlements with tax authorities | (60) | (10,216) | |
Decreases due to expiration of statute of limitations | (270) | ||
Unrecognized tax exposure at end of year | $ 8,966 | $ 6,858 | $ 6,634 |
Selected Statements of Income94
Selected Statements of Income Data - Schedule of Selected Statements of Income Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Sales by location of customers : | |||
Sales by location of customers | $ 862,944 | $ 759,285 | $ 670,954 |
Selling, marketing, general and administrative expenses: | |||
Selling and marketing | 44,617 | 46,343 | 43,938 |
Advertising | 8,370 | 9,787 | 7,213 |
General and administrative | 34,657 | 35,603 | 35,287 |
Settlements and loss contingencies | (4,200) | 2,590 | 33,300 |
Total selling, marketing, general and administrative expenses | 83,444 | 94,323 | 119,738 |
Including provision for doubtful accounts | 16 | 25 | 4 |
Financial (income) expenses: | |||
Interest and exchange differences on long-term liabilities | 928 | 1,515 | 2,512 |
Income in respect of deposits | (10,605) | (6,683) | (4,026) |
Expenses in respect of short-term credit | 1 | ||
Foreign currency transaction losses | (41,634) | (7,118) | (2,417) |
Total financial (income) expenses | (51,311) | (12,285) | (3,931) |
U.S.A. [Member] | |||
Sales by location of customers : | |||
Sales by location of customers | 777,191 | 669,481 | 587,851 |
Canada [Member] | |||
Sales by location of customers : | |||
Sales by location of customers | 55,452 | 56,718 | 52,452 |
Israel [Member] | |||
Sales by location of customers : | |||
Sales by location of customers | 22,157 | 22,917 | 19,929 |
Other [Member] | |||
Sales by location of customers : | |||
Sales by location of customers | $ 8,144 | $ 10,169 | $ 10,722 |
Segment Information - Schedule
Segment Information - Schedule of Geographic Area Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to unaffiliated customers | $ 862,944 | $ 759,285 | $ 670,954 |
Long-lived assets | 173,455 | 175,306 | 168,149 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to unaffiliated customers | 22,157 | 22,917 | 19,929 |
Long-lived assets | 88,804 | 90,676 | 87,912 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to unaffiliated customers | 55,452 | 56,718 | 52,452 |
Long-lived assets | 46,876 | 44,165 | 38,614 |
U.S.A. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to unaffiliated customers | 777,191 | 669,481 | 587,851 |
Long-lived assets | 36,755 | 39,140 | 40,383 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to unaffiliated customers | 8,144 | 10,169 | 10,722 |
Long-lived assets | $ 1,020 | $ 1,325 | $ 1,240 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Customer | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Number of major customers | 3 | 3 | |
U.S.A. [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of major customers | 3 | ||
Customer One [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 20.40% | 20.80% | |
Customer One [Member] | U.S.A. [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 18.00% | ||
Customer Two [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 17.30% | 14.00% | |
Customer Two [Member] | U.S.A. [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 14.10% | ||
Customer Three [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 13.40% | 12.20% | |
Customer Three [Member] | U.S.A. [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales to customers | 10.30% |
Segment Information - Schedul97
Segment Information - Schedule of Sales by Therapeutic Category (Detail) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 100.00% | 100.00% | 100.00% |
Dermatological and Topical [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 66.00% | 73.00% | 77.00% |
Neuropsychiatric [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 16.00% | 14.00% | 9.00% |
Cardiovascular [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 8.00% | 6.00% | 6.00% |
Anti-Inflammatory [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 5.00% | 4.00% | 4.00% |
Other [Member] | |||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||
Net sales | 5.00% | 3.00% | 4.00% |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Sales, net | $ 0 | $ 0 | $ 0 |
Cost of sales | (276) | (220) | (1,170) |
Gross loss | (276) | (220) | (1,170) |
Operating expenses: | |||
Research and development | (2) | (10) | |
Selling, marketing, general and administrative | (167) | (182) | (216) |
Operating loss | (445) | (402) | (1,396) |
Financial (expenses) income, net | (347) | 162 | (213) |
Other income, net | 2 | 2 | 415 |
Loss before income taxes | (790) | (238) | (1,194) |
Tax benefit (expense) | 3 | (81) | |
Net loss from discontinued operations | $ (787) | $ (319) | $ (1,194) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2015 | |
Sun Pharmaceutical Industries Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Voting interest | 79.20% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2015shares | |
Subsequent Events [Member] | |
Subsequent Event [Line Items] | |
Stock options granted to directors or employees | 0 |