Income Taxes

12 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note E — Income Taxes

The income tax provision consisted of the following for the three fiscal years ended March 31, 2013, 2014 and 2015:

	2013			2014			2015
Current – Federal	$	11,236,000		$	21,978,000		$	16,534,000
Current – State		3,653,000			2,656,000			136,000
Subtotal		14,889,000			24,634,000			16,670,000
Deferred – Federal		2,310,000			(2,367,000	)		312,000
Deferred – State		(34,000	)		(152,000	)		(8,000	)
Subtotal		2,276,000			(2,519,000	)		304,000
	$	17,165,000		$	22,115,000		$	16,974,000

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the three fiscal years ended March 31, 2013, 2014 and 2015:

	2013			2014			2015
Income taxes at federal statutory rate (35%)	$	15,363,000		$	20,633,000		$	15,947,000
State income taxes, net of federal benefit		1,172,000			1,826,000			1,535,000
Uncertain tax positions		26,000			(245,000	)		1,346,000
Adjustments to returns as filed		821,000			(293,000	)		(1,978,000	)
Other		(217,000	)		194,000			124,000
	$	17,165,000		$	22,115,000		$	16,974,000

Income taxes paid totaled $9,663,000, $20,791,000, and $19,528,000 for the fiscal years ended March 31, 2013, 2014, and 2015, respectively.

Deferred tax assets and liabilities at March 31, 2014 and 2015 are:

	2014			2015
Deferred income tax assets:
Accrued liabilities not currently deductible	$	6,672,000		$	7,547,000
Allowance for doubtful accounts		692,000			631,000
Stock-based compensation		717,000			1,044,000
Accrued rent		1,267,000			2,152,000
Other		955,000			830,000
Deferred assets		10,303,000			12,204,000
Deferred income tax liabilities:
Excess of book over tax basis of fixed assets		(14,409,000	)		(15,985,000	)
Intangible assets		(4,934,000	)		(5,217,000	)
Other		(218,000	)		(564,000	)
Deferred liabilities		(19,561,000	)		(21,766,000	)
Net deferred tax asset/(liability)	$	(9,258,000	)	$	(9,562,000	)

Prepaid expenses and taxes include $1,346,000 and $5,758,000 at March 31, 2014 and 2015, respectively, for income taxes due in the first quarter of the succeeding fiscal year.

A reconciliation of the financial statement recognition and measurement of unrecognized tax positions during the current fiscal year is as follows:

Balance as of March 31, 2014	$	700,000
Additions based on tax positions related to the current year		1,499,000
Additions for tax positions of prior years		—
Reductions for tax positions related to the current year Reductions for tax positions of prior years		(60,000 (150,000	)  )
Balance as of March 31, 2015	$	1,989,000

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the years ended March 31, 2013, 2014 and 2015, the Company recognized approximately $80,000, ($173,000) and $57,000 in interest and penalties, respectively. As of March 31, 2013, 2014 and 2015, accrued interest and penalties related to uncertain tax positions were $257,000, $83,000 and $140,000, respectively. The Company believes there will be a material reduction in its unrecognized tax benefits within the next 12 months as a result of amended state filings for which an estimate cannot be made.

The tax fiscal years 2011-2014 remain open to examination by the major taxing jurisdictions to which the Company is subject.