INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2019

Reconciliation of Income Taxes to Statutory Federal Income Tax Rate

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

	Year Ended March 31,
	2019			2018			2017

Statutory federal income tax rate		21.0	%		31.5	%		35.0	%
Income tax expense computed at the U.S. statutory federal rate	$	18,139		$	26,505		$	30,134
Effect of federal reduction of statutory rate		-			(1,654	)
State income tax expense—net of federal benefit		4,795			3,842			4,193
Non-deductible executive compensation		630			658			512
Other		(526	)		(582	)		717
Provision for income taxes	$	23,038		$	28,769		$	35,556
Effective income tax rate		26.7	%		34.3	%		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,
	2019			2018			2017
Current:
Federal	$	12,709		$	23,196		$	29,619
State		6,591			5,377			7,001
Foreign		454			240			132
Total current expense		19,754			28,813			36,752

Deferred:
Federal		3,826			(611	)		(622	)
State		(249	)		154			(432	)
Foreign		(293	)		413			(142	)
Total deferred expense (benefit)		3,284			(44	)		(1,196	)

Provision for income taxes	$	23,038		$	28,769		$	35,556

Components of Deferred Tax Assets and Liabilities

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

	March 31,
	2019			2018
Deferred Tax Assets:
Accrued vacation	$	2,167		$	1,596
Deferred revenue		1,260			668
Reserve for credit losses		587			607
Restricted stock		1,455			1,270
Other accruals and reserves		1,430			1,497
Other credits and carryforwards		1,065			1,335
Gross deferred tax assets		7,964			6,973
Less: valuation allowance		(1,065	)		(1,335	)
Net deferred tax assets		6,899			5,638

Deferred Tax Liabilities:
Basis difference in fixed assets		(2,150	)		(1,570	)
Basis difference in operating leases		(9,197	)		(4,517	)
Basis difference in tax deductible goodwill		(467	)		(1,213	)
Total deferred tax liabilities		(11,814	)		(7,300	)

Net deferred tax liabilities	$	(4,915	)	$	(1,662	)