INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2020

INCOME TAXES [Abstract]

Reconciliation of Income Taxes to Statutory Federal Income Tax Rate

A reconciliation of income taxes computed at the statutory federal income tax rate of 21.0% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages):

	Year Ended March 31,
	2020			2019			2018
Statutory federal income tax rate		21.0	%		21.0	%		31.5	%
Income tax expense computed at the U.S. statutory federal rate	$	20,182		$	18,139		$	26,505
Effect of federal reduction of statutory rate		-			-			(1,654	)
State income tax expense—net of federal benefit		5,659			4,795			3,842
Non-deductible executive compensation		613			630			658
Other		423			(526	)		(582	)
Provision for income taxes	$	26,877		$	23,038		$	28,769
Effective income tax rate		28.0	%		26.7	%		34.3	%

Components of Provision for Income Taxes

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

	Year Ended March 31,
	2020			2019			2018
Current:
Federal	$	19,367		$	12,709		$	23,196
State		9,520			6,591			5,377
Foreign		200			454			240
Total current expense		29,087			19,754			28,813
Deferred:
Federal		(492	)		3,826			(611	)
State		(1,799	)		(249	)		154
Foreign		81			(293	)		413
Total deferred expense (benefit)		(2,210	)		3,284			(44	)
Provision for income taxes	$	26,877		$	23,038		$	28,769

Components of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As a result of the adoption of Codification Topic 842, we recorded a deferred tax asset related to the lease liabilities and recorded a deferred tax liability related to the right-of-use assets. Significant components of our deferred tax assets and liabilities were as follows (in thousands):

	March 31,
	2020			2019
Deferred Tax Assets:
Accrued vacation	$	1,966		$	2,167
Deferred revenue		3,175			1,260
Reserve for credit losses		792			587
Restricted stock		1,575			1,455
Other accruals and reserves		608			1,430
Accrued bonus		2,426			-
Lease Liabilities		2,550			-
Other credits and carryforwards		1,385			1,065
Gross deferred tax assets		14,477			7,964
Less: valuation allowance		(1,385	)		(1,065	)
Net deferred tax assets		13,092			6,899
Deferred Tax Liabilities:
Property and equipment		(2,102	)		(2,150	)
Operating leases		(10,098	)		(9,197	)
Prepaid expenses		(817	)		-
Right-of-use assets		(2,535	)		-
Tax deductible goodwill		(270	)		(467	)
Total deferred tax  liabilities		(15,822	)		(11,814	)
Net deferred tax liabilities	$	(2,730	)	$	(4,915	)