Income Taxes (Tables)

12 Months Ended

Mar. 31, 2014

Schedule of income from continuing operations before income taxes

For the year ended March 31, income from continuing operations before income taxes consisted of the following:



(In thousands)	2014			2013			2012
Loss before income taxes
United States	$	(5,475	)	$	(9,594	)	$	(46,728	)
Foreign	89			262			54
Total loss from continuing operations before income taxes	$	(5,386	)	$	(9,332	)	$	(46,674	)

Schedule of income tax (benefit) expense

For the year ended March 31, income tax (benefit) expense consisted of the following:



(In thousands)	2014			2013			2012
Income tax (benefit) expense
Current:
Federal	$	(2,206	)	$	(3,002	)	$	(9,208	)
State and local	(161		)	28			31
Foreign	55			100			5
Deferred:
Federal	(161		)	—			—
State and local	(20		)	(252		)	—
Foreign	2			8			(9		)
Total income tax benefit	$	(2,491	)	$	(3,118	)	$	(9,181	)

Schedule of effective income tax rate reconciliation

The following table presents the principal components of the difference between the effective tax rate for continuing operations to the U.S. federal statutory income tax rate for the years ended March 31:



(In thousands)	2014			2013			2012
Income tax benefit at the statutory rate of 35%	$	(2,103	)	$	(3,266	)	$	(16,729	)
(Benefit) provision for state taxes	(106		)	(14		)	73
Impact of foreign operations	14			(48		)	956
Indefinite life assets	47			(251		)	72
Officer life insurance	(28		)	(75		)	36
Change in valuation allowance	(76		)	627			8,345
Change in liability for unrecognized tax benefits	(561		)	(230		)	(1,536		)
Meals and entertainment	113			114			177
Other	209			25			(575		)
Total income tax benefit	$	(2,491	)	$	(3,118	)	$	(9,181	)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of March 31, are as follows:



(In thousands)	2014			2013
Deferred tax assets:
Accrued liabilities	$	3,884		$	5,933
Allowance for doubtful accounts	408			244
Inventory valuation reserve	14			31
Restructuring reserve	54			213
Federal losses and credit carryforwards	55,231			56,635
Foreign net operating losses	330			331
State losses and credit carryforwards	10,706			10,221
Deferred compensation	70			76
Deferred revenue	61			—
Goodwill and other intangible assets	3,611			3,574
Other	514			543
	74,883			77,801
Less: valuation allowance	(73,014		)	(73,595		)
Total	1,869			4,206
Deferred tax liabilities:
Property and equipment & software amortization	(1,560		)	(4,091		)
Indefinite-lived goodwill & intangible assets	(3,622		)	(3,574		)
Other	(81		)	(113		)
Total	(5,263		)	(7,778		)
Total deferred tax liabilities	$	(3,394	)	$	(3,572	)

Schedule of unrecognized tax benefits rollforward

We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31:



(In thousands)	2014			2013			2012
Balance at April 1	$	4,248		$	2,873		$	4,123
Additions:
Relating to positions taken during current year	—			1,624			1
Relating to positions taken during prior year	—			—			47
Reductions:
Relating to tax settlements	—			—			(293		)
Relating to positions taken during prior year	(1,238		)	—			(47		)
Relating to lapse in statute	(442		)	(249		)	(958		)
Balance at March 31	$	2,568		$	4,248		$	2,873