(5) Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows (in thousands):

	March 31,
	2016		2015
Deferred tax assets:
Accrued expenses	$	537	$	545
Deferred stock compensation		302		246
Bad debt and inventory reserves		29		26
Property and equipment		-		23

Total deferred tax assets		868		840

Deferred tax liabilities:
Property and equipment		5		-

Total net deferred taxes	$	863	$	840

At March 31, 2016, the Company had no federal net operating loss carryforwards.

The components of the income tax provision consist of the following (in thousands):

	Year Ended March 31,
	2016			2015		2014

Current taxes
Federal	$	10,982		$	9,303	$	9,689
State		1,041			885		921
Total current taxes		12,023			10,188		10,610

Deferred taxes
Federal		(21	)		143		(167	)
State		(2	)		14		(16	)
Total deferred taxes		(23	)		157		(183	)

Total provision for income taxes	$	12,000		$	10,345	$	10,427

The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):

	Year Ended March 31,
	2016			2015			2014

Income taxes at U.S. statutory rates	$	11,399		$	9,729		$	9,940
State income taxes, net of federal tax benefit		675			589			583
Permanent differences		(23	)		(29	)		(35	)
Other		(51	)		56			(61	)

Total provision for income taxes	$	12,000		$	10,345		$	10,427