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Income Taxes | 12 Months Ended
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Mar. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes consists of the following:
| Year Ended March 31,
| 2016 |  | 2015 |  | 2014
(In thousands) |  |  |  |  |
United States | $ | 142,253 |  |  | $ | 122,588 |  |  | $ | 98,786 |
Foreign | 14,932 |  |  | 4,870 |  |  | 2,962 |
| $ | 157,185 |  |  | $ | 127,458 |  |  | $ | 101,748 |
The provision for income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2016 |  | 2015 |  | 2014
Current |  |  |  |  |
Federal | $ | 6,080 |  |  | $ | 13,066 |  |  | $ | 7,801 |
State | 1,171 |  |  | 760 |  |  | 625 |
Foreign | 3,905 |  |  | 3,228 |  |  | 1,675 |
Deferred |  |  |  |  |  |  |
Federal | 44,787 |  |  | 31,012 |  |  | 27,045 |
State | 1,678 |  |  | 1,162 |  |  | (7,879 | )
Foreign | (343 | ) |  | (30 | ) |  | (134 | )
Total provision for income taxes | $ | 57,278 |  |  | $ | 49,198 |  |  | $ | 29,133 |
The principal components of our deferred tax balances are as follows:
| March 31,
(In thousands) | 2016 |  | 2015
Deferred Tax Assets |  |  |
Allowance for doubtful accounts and sales returns | $ | 5,083 |  |  | $ | 4,106 |
Inventory capitalization | 1,838 |  |  | 1,550 |
Inventory reserves | 1,367 |  |  | 1,495 |
Net operating loss carryforwards | 12,350 |  |  | 23,800 |
State income taxes | 10,293 |  |  | 7,557 |
Accrued liabilities | 2,162 |  |  | 619 |
Stock compensation | 4,411 |  |  | 3,517 |
Other | 300 |  |  | 834 |
Total deferred tax assets | 37,804 |  |  | 43,478 |
Deferred Tax Liabilities |  |  |  |
Property and equipment | (833 | ) |  | (1,143 | )
Intangible assets | (496,485 | ) |  | (385,807 | )
Total deferred tax liabilities | (497,318 | ) |  | (386,950 | )
Net deferred tax liability | $ | (459,514 | ) |  | $ | (343,472 | )
At March 31, 2016, a 100% owned subsidiary of the Company had a net operating loss carryforward of approximately $32.0 million ($11.2 million, tax effected), which may be used to offset future taxable income of the consolidated group and begins to expire in 2025. The Company expects to fully utilize the loss carryover before it expires. The net operating loss carryforward is subject to an annual limitation as to usage under Internal Revenue Code Section 382 of approximately $33.0 million. A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:
| Year Ended March 31,
| 2016 |  | 2015 |  | 2014
(In thousands) |  |  | % |  |  |  |  | % |  |  |  |  | % |
Income tax provision at statutory rate | $ | 55,015 |  |  | 35.0 |  |  | $ | 44,610 |  |  | 35.0 |  |  | $ | 35,612 |  |  | 35.0 |
Foreign tax benefit | (2,894 | ) |  | (1.8 | ) |  | (2,019 | ) |  | (1.6 | ) |  | (918 | ) |  | (0.9 | )
State income taxes, net of federal income tax benefit | 3,284 |  |  | 2.0 |  |  | 2,865 |  |  | 2.3 |  |  | 2,004 |  |  | 2.0 |
Decrease in net deferred tax liability resulting from a change in the effective state tax rate | — |  |  | — |  |  | — |  |  | — |  |  | (8,892 | ) |  | (8.7 | )
Goodwill adjustment for sale of asset | — |  |  | — |  |  | 206 |  |  | 0.2 |  |  | — |  |  | — |
Nondeductible transaction costs | 1,071 |  |  | 0.7 |  |  | 2,936 |  |  | 2.3 |  |  | — |  |  | — |
Nondeductible compensation | 758 |  |  | 0.5 |  |  | 566 |  |  | 0.4 |  |  | 1,011 |  |  | 1.0 |
Other | 44 |  |  | — |  |  | 34 |  |  | — |  |  | 316 |  |  | 0.3 |
Total provision for income taxes | $ | 57,278 |  |  | 36.4 |  |  | $ | 49,198 |  |  | 38.6 |  |  | $ | 29,133 |  |  | 28.7 |
Uncertain tax liability activity is as follows:
| 2016 |  | 2015 |  | 2014
(In thousands) |  |  |  |  |
Balance – beginning of year | $ | 3,420 |  |  | $ | 1,236 |  |  | $ | 1,016 |
Additions based on tax positions related to the current year | 664 |  |  | 2,229 |  |  | 360 |
Reductions based on lapse of statute of limitations | — |  |  | (45 | ) |  | (140 | )
Balance – end of year | $ | 4,084 |  |  | $ | 3,420 |  |  | $ | 1,236 |
We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. We did not incur any material interest or penalties related to income taxes in 2014, 2015 or 2016. The amount of unrecognized tax benefits at March 31, 2016, 2015, and 2014 was $4.1 million, $3.4 million, and $1.2 million, respectively, which would reduce the effective tax rate by 2.6%, 2.7%, and 1.2%, respectively, if recognized. We do not anticipate any events or circumstances that would cause a significant change to these uncertainties during 2017. We are subject to taxation in the United States and various state and foreign jurisdictions, and we are generally open to examination from the year ended March 31, 2013 forward. The Company does not provide for United States income taxes on the undistributed earnings of foreign subsidiaries, which are intended to be indefinitely reinvested in operations outside of the United States. As of March 31, 2016, the cumulative amount of earnings upon which United States income taxes have not been provided is approximately $27.8 million. As of March 31, 2016, the amount of unrecognized deferred tax liability related to these earnings is estimated to be $2.2 million.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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