INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2018

Reconciliation of Income Taxes to Statutory Federal Income Tax Rate

A reconciliation of income taxes computed at the statutory federal income tax rate of 31.5% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages):

	Year Ended March 31,
	2018			2017			2016

Statutory federal income tax rate		31.5	%		35.0	%		35.0	%
Income tax expense computed at the U.S. statutory federal rate	$	26,505		$	30,134		$	26,513
Effect of federal reduction of statutory rate	$	(1,654	)
State income tax expense—net of federal benefit		3,842			4,193			3,544
Non-deductible executive compensation		658			512			331
Other		(582	)		717			616
Provision for income taxes	$	28,769		$	35,556		$	31,004
Effective income tax rate		34.3	%		41.3	%		40.9	%

Components of Provision for Income Taxes

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

	Year Ended March 31,
	2018			2017			2016
Current:
Federal	$	23,196		$	29,619		$	21,361
State		5,377			7,001			6,114
Foreign		240			132			13
Total current expense		28,813			36,752			27,488

Deferred:
Federal		(611	)		(622	)		3,727
State		154			(432	)		(211	)
Foreign		413			(142	)		-
Total deferred expense (benefit)		(44	)		(1,196	)		3,516

Provision for income taxes	$	28,769		$	35,556		$	31,004

Components of Deferred Tax Assets and Liabilities

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

	March 31,
	2018			2017
Deferred Tax Assets:
Accrued vacation	$	1,596		$	2,217
Deferred revenue		668			3,107
Foreign net operating loss carryforward		-			462
Reserve for credit losses		607			2,026
Restricted stock		1,270			1,779
Other accruals and reserves		1,497			2,555
Other credits and carryforwards		1,335			1,166
Gross deferred tax assets		6,973			13,312
Less: valuation allowance		(1,335	)		(1,270	)
Net deferred tax assets		5,638			12,042

Deferred Tax Liabilities:
Basis difference in fixed assets		(1,570	)		(1,399	)
Basis difference in operating leases		(4,517	)		(9,926	)
Basis difference in tax deductible goodwill		(1,213	)		(2,516	)
Total deferred tax liabilities		(7,300	)		(13,841	)

Net deferred tax liabilities	$	(1,662	)	$	(1,799	)