The components of income from continuing operations upon which domestic and foreign income taxes have been provided are as follows:



(in 000s)
Year ended April 30,	2016		2015		2014
Domestic	$	513,746	$	682,744	$	754,036
Foreign	55,733		60,061		13,080
	$	569,479	$	742,805	$	767,116

The components of income tax expense (benefit) for continuing operations are as follows:



(in 000s)
Year ended April 30,	2016			2015			2014
Current:
Federal	$	167,233		$	245,473		$	195,277
State	(26,980		)	31,501			33,274
Foreign	8,735			9,788			6,749
	148,988			286,762			235,300
Deferred:
Federal	19,937			(30,181		)	28,624
State	13,801			(4,040		)	5,475
Foreign	3,200			3,520			(2,380		)
	36,938			(30,701		)	31,719
Total income taxes for continuing operations	$	185,926		$	256,061		$	267,019

The reconciliation between the income tax provision and the amount computed by applying the statutory federal tax rate of 35% to income taxes of continuing operations is as follows:



Year ended April 30,	2016		2015		2014
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
Change in tax rate resulting from:
State income taxes, net of federal income tax benefit	2.2	%	3.5	%	3.8	%
Earnings taxed in foreign jurisdictions	(2.0	)%	(1.8	)%	(0.2	)%
Permanent differences	(0.2	)%	(0.3	)%	0.1	%
Uncertain tax positions	2.8	%	(1.0	)%	(5.6	)%
Change in valuation allowance	(0.5	)%	0.2	%	1.5	%
Significant state apportionment changes	(4.3	)%	—	%	—	%
Other	(0.3	)%	(1.1	)%	0.2	%
Effective tax rate	32.7	%	34.5	%	34.8	%

The effective tax rate for fiscal year 2016 decreased 1.8% compared to the prior year. This decrease was due largely to the tax effects of changes in state apportionment. The 4.3% decrease related to the changes in state apportionment were related to income from prior fiscal years for which tax returns were not yet filed when the apportionment change was made. The favorable impact of the change in state apportionment was offset by an increase in uncertain tax positions. The tax expense from uncertain tax positions resulted mainly from federal and state tax positions taken on current year income tax returns.

The net loss from discontinued operations for fiscal years 2016, 2015 and 2014 totaled $9.3 million, $13.1 million and $24.9 million, respectively, and was net of tax benefits of $5.4 million, $8.1 million and $15.4 million, respectively.

The significant components of deferred tax assets and liabilities are reflected in the following table:



(in 000s)
As of April 30,	2016			2015
Deferred tax assets:
Accrued expenses	$	7,919		$	9,301
Deferred revenue	35,066			39,604
Allowance for credit losses and related reserves	69,347			107,554
Internally-developed software	51,998			46,376
Deferred and stock-based compensation	19,075			21,776
Net operating loss carry-forward	26,992			27,285
Federal tax benefits related to state unrecognized tax benefits	31,123			26,862
Other	10,187			7,278
Valuation allowance	(21,515		)	(24,937		)
Total deferred tax assets	230,192			261,099

Deferred tax liabilities:
Prepaid expenses and other	(3,225		)	(7,295		)
Property and equipment	(19,913		)	(25,589		)
Intangibles	(93,406		)	(93,700		)
Total deferred tax liabilities	(116,544		)	(126,584		)

Net deferred tax assets	$	113,648		$	134,515

Effective November 1, 2015, we adopted the provisions of ASU 2015-17 on a prospective basis. Accordingly, all net deferred tax assets and liabilities as of April 30, 2016 are classified as noncurrent in the consolidated balance sheet. Amounts for prior periods have not been restated in the consolidated financial statements.

Our valuation allowance on deferred tax assets decreased $3.4 million during the current period. The decrease in the valuation allowance related to management's assessment that it was now more likely than not that we could utilize our deferred tax assets related to foreign tax credit carry-forwards, which were included in other deferred tax assets as of April 30, 2015.

Certain of our subsidiaries file stand-alone returns in various states and foreign jurisdictions, and others join in filing consolidated or combined returns in such jurisdictions. As of April 30, 2016, we had net operating losses (NOLs) in various states and foreign jurisdictions. The amount of state NOLs vary by taxing jurisdiction. We maintain a valuation allowance of $20.7 million for the portion of such losses that, more likely than not, will not be realized. If not used, the NOLs will expire in varying amounts during fiscal years 2017 through 2034.

We intend to indefinitely reinvest the earnings of our foreign subsidiaries; therefore, no provision has been made for income taxes that might be payable upon remittance of such earnings. The amount of unrecognized tax liability on these foreign earnings, net of expected foreign tax credits, is not material as of April 30, 2016.

Changes in unrecognized tax benefits for fiscal years 2016, 2015 and 2014 are as follows:



(in 000s)
Year ended April 30,	2016			2015			2014
Balance, beginning of the year	$	86,268		$	111,491		$	146,391
Additions based on tax positions related to prior years	29,294			15,510			9,743
Reductions based on tax positions related to prior years	(25,413		)	(38,783		)	(25,403		)
Additions based on tax positions related to the current year	27,220			22,319			7,399
Reductions related to settlements with tax authorities	(450		)	(10,450		)	(23,993		)
Expiration of statute of limitations	(8,922		)	(11,423		)	(11,853		)
Other	3,517			(2,396		)	9,207
Balance, end of the year	$	111,514		$	86,268		$	111,491

The total gross unrecognized tax benefit ending balance as of April 30, 2016, 2015 and 2014, includes $82.3 million, $55.3 million and $73.7 million, respectively, which if recognized, would impact our effective tax rate. The difference results from adjusting the gross balances for such items as federal, state and foreign deferred items, interest and deductible taxes. We do not expect a significant change in the amount of unrecognized benefits as of the end of fiscal 2016 within the next twelve months.

Interest and penalties, if any, accrued on the unrecognized tax benefits are reflected in income tax expense. The total gross interest and penalties accrued as of April 30, 2016, 2015 and 2014 totaled $22.3 million, $24.7 million and $24.6 million, respectively.

We file a consolidated federal income tax return in the United States with the IRS and file tax returns in various state and foreign jurisdictions. Tax returns are typically examined and settled upon completion of the examination, with tax controversies settled either at the examination level or through the appeals process. The Company currently does not have a U.S. federal income tax return under examination. Our U.S. federal returns for 2011 and all prior periods have been audited by the IRS and are closed. Our return for 2012 has been audited by the IRS but remains open until the three year statute runs in fall of 2016. Our U.S. federal returns for 2013 and after have not been audited and remain open to examination. With respect to state and local jurisdictions and countries outside of the United States, we and our subsidiaries are typically subject to examination for three to six years after the income tax returns have been filed. Although the outcome of tax audits is always uncertain, we believe that adequate amounts of tax, interest and penalties have been provided for in the consolidated financial statements for any adjustments that might be incurred due to state, local or foreign audits.