INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2014

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,
	2014			2013

Beginning balance	$	316		$	316
Reductions to uncertain tax positions		(167	)		-
Ending balance	$	149		$	316

Reconciliation of income taxes to the 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,
	2014			2013			2012

Statutory federal income tax rate		35	%		35	%		35	%
Income tax expense computed at the U.S. statutory federal rate	$	21,040		$	20,555		$	13,850
State income tax expense—net of federal benefit		3,080			2,894			2,096
Non-deductible executive compensation		248			150			152
Other		457			316			109
Provision for income taxes	$	24,825		$	23,915		$	16,207
Effective income tax rate		41.3	%		40.7	%		41.0	%

Components of the provision for income taxes

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

	Year Ended March 31,
	2014			2013			2012
Current:
Federal	$	23,313		$	20,041		$	12,266
State		5,033			4,453			3,088
Foreign		15			36			59
Total current expense		28,361			24,530			15,413

Deferred:
Federal		(3,274	)		(581	)		814
State		(262	)		(34	)		(20	)
Total deferred expense (benefit)		(3,536	)		(615	)		794

Provision for income taxes	$	24,825		$	23,915		$	16,207

Components of deferred tax assets and liabilities

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

	March 31,
	2014			2013
Deferred Tax Assets:
Accrued vacation	$	1,700		$	1,345
Provision for credit losses		2,111			1,997
State net operating loss carryforward		1,287			1,505
Book compensation on discounted stock options		-			77
Deferred compensation		1,010			898
Deferred revenue		260			221
Foreign tax credit		11			-
Federal net operating loss carry forward		88			168
Other accruals and reserves		1,740			2,043
Gross deferred tax assets		8,207			8,254
Less: valuation allowance		(1,287	)		(1,505	)
Net deferred tax assets		6,920			6,749

Deferred Tax Liabilities:
Basis difference in fixed assets		(1,056	)		(491	)
Basis difference in operating leases		(4,674	)		(8,765	)
Basis difference in tax deductible goodwill		(2,449	)		(2,288	)
Total deferred tax liabilities		(8,179	)		(11,544	)

Net deferred tax liabilities	$	(1,259	)	$	(4,795	)

Reported as:
Deferred tax assets - current	$	3,742		$	2,023
Deferred tax liabilities - long-term		(5,001	)		(6,818	)
Net deferred tax liabilities	$	(1,259	)	$	(4,795	)