INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2016

The components of our income tax provision are summarized as follows (in thousands):

	Year Ended March 31,
	2016			2015			2014
Continuing operations:
Current:
Federal	$	13,204		$	12,065		$	7,947
State		1,562			1,657			939
Foreign		1,290			64			892
Total current income tax provision		16,056			13,786			9,778
Deferred:
Federal		178			(1,363	)		(631	)
State		(128	)		(158	)		(154	)
Foreign		(33	)		(26	)		-
Total deferred income tax provision (benefit)		17			(1,547	)		(785	)
Total income tax provision - continuing operations	$	16,073		$	12,239		$	8,993

Discontinued operations and gain on sale of discontinued operations:
Current:
Federal	$	(835	)	$	5,923		$	(1,147	)
State		(69	)		458			(88	)
Total current income tax provision (benefit)		(904	)		6,381			(1,235	)
Deferred:
Federal		1,146			(2,258	)		-
State		95			(175	)		-
Total deferred income tax (benefit)		1,241			(2,433	)		-
Total income tax provision (benefit) - discontinued operations and gain on sale of discontinued operations	$	337		$	3,948		$	(1,235	)

Component of Income before Income Tax Provision

The components of our income before income tax provision are summarized as follows (in thousands):

	Year Ended March 31,
	2016		2015			2014
Continuing operations:
United States	$	43,885	$	33,489		$	22,598
Foreign		3,262		(447	)		2,624
Total - continuing operations	$	47,147	$	33,042		$	25,222
Discontinued operations:
United States	$	893	$	10,475		$	(3,279	)

Effective Income Tax Rate Reconciliation

The income tax provision from continuing operations differs from the amount computed by applying the federal statutory income tax rate (35 percent) to income from continuing operations before income tax provision as follows (in thousands):

	Year Ended March 31,
	2016			2015			2014
Continuing operations:
Income taxes at federal income tax rate	$	16,502		$	11,565		$	8,828
State income taxes, net of federal benefits		917			787			475
Non-deductible compensation		543			880			260
Research and development tax credits		(607	)		(383	)		(210	)
Tax-exempt interest income		(2	)		(6	)		(20	)
Qualified production activities income benefit		(761	)		(866	)		(490	)
Other		(519	)		262			150
Total income tax provision from continuing operations	$	16,073		$	12,239		$	8,993

Breakdown Between Current and Non-Current Net Deferred Tax Assets (Liabilities)

The following table presents the breakdown between current and non-current net deferred tax assets (liabilities) (in thousands):

	March 31,
	2016			2015
Deferred tax assets, current	$	4,810		$	6,575
Deferred tax assets, non-current		3,903			3,413
Deferred tax liabilities, non-current		(384	)		(310	)
Total net deferred tax assets	$	8,329		$	9,678

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets (liabilities) are as follows (in thousands)

	March 31,
	2016			2015
Deferred tax assets:
Research and development tax credit carryforwards	$	830		$	717
Capitalized research and development		76			106
Inventory reserves		623			724
Deferred revenue from extended maintenance agreements		1,446			1,687
Warranty reserves		1,217			1,190
Accrued payroll and other accrued expenses		1,553			2,904
Share-based compensation		3,822			2,932
Alternative minimum tax credits		24			24
Tax on deferred intercompany profit		601			1,161
Other		665			494
Total deferred tax assets		10,857			11,939
Deferred tax liabilities:
Depreciation		(2,135	)		(1,850	)
Other		(393	)		(411	)
Total deferred tax liabilities		(2,528	)		(2,261	)
Net deferred tax assets	$	8,329		$	9,678