Income Taxes

The domestic and foreign components of Income (loss) before provision (benefit) for income taxes are as follows:



	Fiscal
	2016			2015		2014
Domestic	$	(184,598	)	$	17,865	$	(100,786	)
Foreign	(8,486		)	5,723		(13,450		)
Consolidated	$	(193,084	)	$	23,588	$	(114,236	)

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



	Fiscal
	2016			2015		2014
Current
Federal	$	1,037		$	279	$	6,376
State	1,058			1,259		2,112
Foreign	2,067			2,052		1,821
Total current	4,162			3,590		10,309
Deferred	(26,144		)	4,656		(8,672		)
Total provision (benefit) for income taxes	$	(21,982	)	$	8,246	$	1,637

Reconciliations between income taxes computed using the federal statutory income tax rate and the Company’s effective tax rate are as follows:



	Fiscal
	2016					2015					2014
	$			%		$			%		$			%
Federal statutory tax rate	$	(67,580	)	35.0	%	$	8,256		35.0	%	$	(39,983	)	35.0	%
Foreign taxes, net of foreign tax credits	419			(0.2	)	(418		)	(1.8	)	776			(0.7	)
Non-deductible expenses	588			(0.3	)	(338		)	(1.4	)	(317		)	0.3
State income taxes, net of federal benefit	(2,242		)	1.2		1,082			4.6		211			(0.2	)
Valuation allowance	1,317			(0.7	)	—			—		—			—
International legal entity restructuring	—			—		(1,574		)	(6.6	)	—			—
Permanent book/tax differences	45,732			(23.7	)	—			—		40,222			(35.2	)
Equity awards	1,814			(0.9	)	1,940			8.2		1,626			(1.4	)
Other, net	(2,030		)	1.0		(702		)	(3	)	(898		)	0.8
Effective tax rate	$	(21,982	)	11.4	%	$	8,246		35.0	%	$	1,637		(1.4	)%

The effective tax rate of 11.4% for Fiscal 2016 was primarily due to $130,662 of non-deducible goodwill impairment loss and a decrease in the liability for uncertain tax positions offset by additional valuation allowances against certain foreign net operating losses along with write-offs of deferred tax assets associated with equity awards. The effective tax rate of 35.0% for Fiscal 2015 was primarily due to a tax benefit from an international legal entity restructuring which was partially offset by the write-off of certain deferred tax assets related to equity awards. The effective tax rate of (1.4)% for Fiscal 2014 was primarily due to $114,920 of non-deductible goodwill impairment loss (see Note 5), a decrease in uncertain income tax positions (including interest and penalties) and the benefit associated with the Fiscal 2013 federal return to provision reconciliation partially offset by the write-off of certain deferred tax assets related to equity awards.

The components of current and long-term deferred tax liabilities/assets are as follows:



	March 31,
	2016			2015
Deferred Tax Liabilities
Goodwill and intangibles	$	—		$	18,957
Unremitted earnings of foreign subsidiaries	—			3
Other	1,076			1,428
Gross deferred tax liabilities	1,076			20,388
Deferred Tax Assets
Net operating losses	25,563			27,342
Basis of finished goods inventory	8,599			6,498
Goodwill and intangibles	1,272			—
Reserve for bad debts	2,684			960
Foreign tax credit carry-forwards	3,755			1,596
Accrued employee costs	15,302			10,178
Stock-based compensation	5,616			6,141
Other	—			2,103
Gross deferred tax assets	62,791			54,818
Valuation allowance	(4,835		)	(3,518		)
Net deferred tax assets	57,956			51,300
Net deferred tax assets/(liabilities)	$	56,880		$	30,912

At March 31, 2016, the Company had $38,796, $128,428 and $19,002 of federal, state and foreign gross net operating loss carry-forwards, respectively. As a result of the past acquisitions, Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), limits the amount of net operating losses available to the Company to approximately $4,085 per year. The federal gross net operating loss carry-forwards expire proratably through Fiscal 2031. The state gross net operating loss carry-forwards expire at various times through Fiscal 2036 and the foreign gross net operating loss carry-forwards expire at various times through Fiscal 2026, with the exception of $311 for Austria, $1,650 for Belgium and $5,427 for Brazil, which have no expirations.

A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has recorded a valuation allowance of $4,835 for certain state and foreign net operating loss carry-forwards anticipated to produce no tax benefit.

In general, except for certain earnings associated with inter-company loan balances, it is the Company’s intention to reinvest all undistributed earnings of non-U.S. subsidiaries for an indefinite period of time. Therefore, except for the exceptions noted above, no deferred U.S. income taxes have been provided on undistributed earnings of non-U.S. subsidiaries, which aggregate approximately $2,687 based on exchange rates at March 31, 2016.

A reconciliation of the change in the tax liability for unrecognized tax benefits is as follows:



	Fiscal
	2016			2015			2014
Balance at beginning of year	$	4,083		$	4,384		$	5,340
Additions for tax positions related to the current year	85			62			193
Additions for tax positions related to prior years	—			170			209
Reductions for tax positions related to prior years	(2,152		)	—			(896		)
Settlements	—			(533		)	(462		)
Balance at end of year	$	2,016		$	4,083		$	4,384

Unrecognized tax benefits are classified as either current or non-current under Other liabilities within the Company's Consolidated Balance Sheets. Of the $2,016 noted above, the Company expects that $234 will reverse in the next twelve-months. As of March 31, 2016, 2015 and 2014, the Company recorded $435, $1,065 and $1,114, respectively, of interest and penalties related to uncertain tax positions in current liabilities within Income taxes, all of which impacted the Company's effective tax rate.

Fiscal 2013 through Fiscal 2016 remain open to examination by the Internal Revenue Service ("IRS") and Fiscal 2011 through Fiscal 2016 remain open to examination by certain state and foreign taxing jurisdictions.