4. INCOME TAXES

The provision for income taxes for the years ended March 31, 2015, 2014, and 2013 consisted of the following:

(In thousands)	2015			2014			2013
Current:
Federal	$	(2,688	)	$	6,870		$	11,339
State	19			281			595
Foreign	70			88			22
	(2,599		)	7,239			11,956
Deferred:
Federal	2,691			528			(2,743		)
State	(208		)	(358		)	(375		)
Change in valuation allowance	184			207			154
	2,667			377			(2,964		)
Provision for income taxes	$	68		$	7,616		$	8,992

The difference between the total expected provision for income taxes computed by applying the statutory federal income tax rate to income before provision for income taxes and the recorded provision for income taxes for the three years in the period ended March 31, 2015 is as follows:

(In thousands)	2015			2014			2013
Provision for income taxes at statutory rate	$	366		$	7,957		$	9,253
State tax provision (benefit) net of federal effect	(122		)	(50		)	143
Stock based compensation	(60		)	51			(60		)
Research tax credits	(396		)	(294		)	(589		)
Qualifying manufacturing credits	—			(288		)	(154		)
Change in valuation allowance	184			207			154
Other	96			33			245
Provision for income taxes	$	68		$	7,616		$	8,992

The significant components of the net deferred tax assets at March 31, 2015 and 2014 are as follows:

	March 31, 2015					March 31, 2014
(In thousands)	Current		Non-current			Current		Non-current
Deferred tax assets (liabilities):
Accounts receivable and unbilled costs and fees	$	—	$	119		$	—	$	115
Inventory	150		2,964			240		3,880
Deferred revenue	—		1,265			—		1,783
Accrued vacation	571		—			606		—
Accrued warranty costs	57		—			144		—
Depreciation	—		569			—		(125		)
Accrued contract costs	168		(905		)	1,073		(1,356		)
Unearned compensation	1,407		2,295			2,464		2,221
State credit carryforwards	—		1,334			—		1,151
Other	133		(355		)	248		(200		)
Deferred income tax assets	2,486		7,286			4,775		7,469
Valuation allowance	—		(1,334		)	—		(1,151		)
Net deferred income taxes	$	2,486	$	5,952		$	4,775	$	6,318

As of March 31, 2015 and March 31, 2014, the Company has $2,053,000 and $1,770,000 of state credit carryforwards, respectively. Of these amounts, approximately $244,000 and $263,000 at March 31, 2015 and March 31, 2014, respectively, have unlimited carryforward and the remaining balances expire in various years through 2030.

At March 31, 2015 and March 31, 2014, the Company had a deferred tax valuation allowance of $1,334,000 and $1,151,000, respectively, on state credit carryforwards and other deferred tax assets for which management believes it is more-likely-than-not that realization of these assets will not occur.

The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending March 31, 2012 through 2014 and for various state taxing authorities for the years ending March 31, 2011 through 2014.