Income Tax (Tables)

12 Months Ended

Mar. 31, 2014

The provision (benefit) for income taxes consists of the following components:



	Fiscal Year Ended March 31,
	2014			2013			2012
Current:
Federal taxes	$	8,673		$	30,382		$	36,109
State taxes	2,380			5,019			8,614
Foreign taxes	252			190			73
Total current taxes	11,305			35,591			44,796
Deferred:
Federal taxes	$	(2,894	)	$	(8,469	)	$	(3,571	)
State taxes	(897		)	(742		)	(502		)
Foreign taxes	(193		)	(190		)	(73		)
Total deferred taxes	(3,984		)	(9,401		)	(4,146		)
Provision for income taxes	$	7,321		$	26,190		$	40,650

Provision for income taxes differ at the federal statutory rate

The provision for income taxes differs from the amount computed at the federal statutory rate as follows:



	Fiscal Year Ended March 31,
	2014		2013		2012
Current:
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
State income taxes, net of Federal benefit	4.2		4.0		4.5
Research and development tax credits	(5.3	)	(2.1	)	(0.9	)
Qualified production activities income deduction	(4.9	)	(4.6	)	(3.0	)
Impairment of goodwill	5.7		7.5		—
Other	(2.9	)	(1.8	)	(0.6	)
Effective income tax rate	31.8	%	38.0	%	35.0	%

Net deferred tax assets and liabilities in consolidated balance sheets

The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following:



	March 31, 2014			March 31, 2013
Deferred tax assets:
Deferred revenue	$	10,144		$	11,483
Inventory valuation	46			224
Accrued compensation and benefits	5,219			3,898
Deferred compensation	1,941			1,615
State income taxes	—			17
Compensatory stock option expense	2,094			2,291
Allowance for doubtful accounts	6,791			7,182
Intangible assets	6,086			—
Research and development credit	2,434			2,003
Other	2,992			3,207
Total deferred tax assets	37,747			31,920
Deferred tax liabilities:
Accelerated depreciation	$	(1,582	)	$	(1,876	)
Capitalized software	(13,919		)	(7,717		)
Intangible assets	—			(4,124		)
Prepaid expense	(1,199		)	(1,859		)
State income taxes	(433		)	—
Total deferred tax liabilities	(17,133		)	(15,576		)
Valuation allowance	(2,288		)	(2,003		)
Deferred tax assets, net	$	18,326		$	14,341

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded in income taxes payable in the Company’s consolidated balance sheet, is as follows:



Balance at March 31, 2012	$	413
Additions for prior year tax positions	455
Reductions for prior year tax positions	(135		)
Balance at March 31, 2013	$	733
Additions for current/prior year tax positions	405
Reductions for prior year tax positions	(263		)
Balance at March 31, 2014	$	875