INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2016

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):

	Year Ended March 31,
	2016		2015

Beginning balance	$	72	$	149
Reductions to uncertain tax positions		-		(77	)
Ending balance	$	72	$	72

Reconciliation of Income Taxes to Statutory Federal Income Tax Rate

A reconciliation of income taxes computed at the statutory federal income tax rate of 35% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages):

	Year Ended March 31,
	2016			2015			2014

Statutory federal income tax rate		35	%		35	%		35	%
Income tax expense computed at the U.S. statutory federal rate	$	26,513		$	27,410		$	21,040
State income tax expense—net of federal benefit		3,544			4,193			3,080
Non-deductible executive compensation		331			222			248
Other		616			648			457
Provision for income taxes	$	31,004		$	32,473		$	24,825
Effective income tax rate		40.9	%		41.5	%		41.3	%

Components of Provision for Income Taxes

The components of the provision for income taxes are as follows (in thousands):

	Year Ended March 31,
	2016			2015			2014
Current:
Federal	$	21,361		$	27,665		$	23,313
State		6,114			6,667			5,033
Foreign		13			3			15
Total current expense		27,488			34,335			28,361

Deferred:
Federal		3,727			(1,591	)		(3,274	)
State		(211	)		(271	)		(262	)
Total deferred expense (benefit)		3,516			(1,862	)		(3,536	)

Provision for income taxes	$	31,004		$	32,473		$	24,825

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows (in thousands):

	March 31,
	2016			2015
Deferred Tax Assets:
Accrued vacation	$	2,116		$	1,955
Deferred compensation		-			89
Deferred revenue		1,046			369
Foreign net operating loss carryforward		461			-
Reserve for credit losses		1,929			2,066
Restricted stock		1,778			1,431
Other credits and carryforwards		1,275			1,235
Other accruals and reserves		1,556			687
Gross deferred tax assets		10,161			7,832
Less: valuation allowance		(1,270	)		(1,223	)
Net deferred tax assets		8,891			6,609

Deferred Tax Liabilities:
Basis difference in fixed assets		(1,170	)		(1,238	)
Basis difference in operating leases		(7,749	)		(2,356	)
Basis difference in tax deductible goodwill		(2,973	)		(2,411	)
Total deferred tax liabilities		(11,892	)		(6,005	)

Net deferred tax (liabilities) assets	$	(3,001	)	$	604