Income Tax (Tables)

12 Months Ended

Mar. 31, 2016

The provision for income taxes consists of the following components:



	Fiscal Year Ended March 31,
	2016			2015			2014
Current:
Federal taxes	$	(9,338	)	$	18,055		$	8,673
State taxes	(403		)	1,887			2,380
Foreign taxes	374			262			252
Total current taxes	(9,367		)	20,204			11,305
Deferred:
Federal taxes	$	10,474		$	(9,804	)	$	(2,894	)
State taxes	(100		)	(1,771		)	(897		)
Foreign taxes	(344		)	(297		)	(193		)
Total deferred taxes	10,030			(11,872		)	(3,984		)
Provision for income taxes	$	663		$	8,332		$	7,321

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,
	2016		2015		2014
Current:
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
State income taxes, net of Federal benefit	(5.2	)	2.0		4.2
Research and development tax credits	(23.4	)	(4.4	)	(5.3	)
Qualified production activities income deduction	—		(5.4	)	(4.9	)
Impairment of goodwill	—		—		5.7
Stock option deduction	3.7		0.6		0.7
Other non-recurring adjustments for State taxes	—		(1.8	)	—
Meals and entertainment	3.7		0.8		1.2
Acquisition expenses	(3.6	)	—		(0.3	)
Foreign rate differential	(10.2	)	(1.6	)	(1.5	)
Net operating loss carryback	9.1		—		—
Other	1.4		(1.8	)	(3.0	)
Effective income tax rate	10.5	%	23.4	%	31.8	%

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, 2016			March 31, 2015
Deferred tax assets:
Net operating losses	$	17,920		$	512
Deferred revenue	10,682			11,970
Accrued compensation and benefits	5,868			7,744
Allowance for doubtful accounts	4,176			4,944
Research and development credit	3,611			1,988
Compensatory stock option expense	2,664			2,852
Deferred compensation	2,586			2,342
State income taxes	445			(730		)
Inventory valuation	68			56
Other	—			3,561
Total deferred tax assets	48,020			35,239
Deferred tax liabilities:
Accelerated depreciation	$	(2,434	)	$	(756	)
Capitalized software	(9,644		)	(8,728		)
Intangible assets	(22,972		)	7,603
Prepaid expense	(1,249		)	(1,321		)
Other	(972		)	—
Total deferred tax liabilities	(37,271		)	(3,202		)
Valuation allowance	(2,551		)	(1,840		)
Deferred tax assets, net	$	8,198		$	30,197

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 within other noncurrent liabilities in our consolidated balance sheet, is as follows:



Balance at March 31, 2014	$	875
Additions for current/prior year tax positions	3,106
Reductions for prior year tax positions	(218		)
Balance at March 31, 2015	$	3,763
Additions for prior year tax positions	235
Reductions for prior year tax positions	(43		)
Balance at March 31, 2016	$	3,955