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Income Taxes | 12 Months Ended
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Mar. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2017 |  | 2016 |  | 2015
United States | $ | 93,582 |  |  | $ | 142,253 |  |  | $ | 122,588 |
Foreign | 17,268 |  |  | 14,932 |  |  | 4,870 |
| $ | 110,850 |  |  | $ | 157,185 |  |  | $ | 127,458 |
The provision for income taxes consists of the following:
| Year Ended March 31,
(In thousands) | 2017 |  | 2016 |  | 2015
Current |  |  |  |  |
Federal | $ | 40,183 |  |  | $ | 6,080 |  |  | $ | 13,066 |
State | 2,808 |  |  | 1,171 |  |  | 760 |
Foreign | 4,242 |  |  | 3,905 |  |  | 3,228 |
Deferred |  |  |  |  |  |  |
Federal | (5,421 | ) |  | 44,787 |  |  | 31,012 |
State | (163 | ) |  | 1,678 |  |  | 1,162 |
Foreign | (194 | ) |  | (343 | ) |  | (30 | )
Total provision for income taxes | $ | 41,455 |  |  | $ | 57,278 |  |  | $ | 49,198 |
The principal components of our deferred tax balances are as follows:
| March 31,
(In thousands) | 2017 |  | 2016
Deferred Tax Assets |  |  |
Allowance for doubtful accounts and sales returns | $ | 5,280 |  |  | $ | 5,083 |
Inventory capitalization | 1,881 |  |  | 1,838 |
Inventory reserves | 1,880 |  |  | 1,367 |
Net operating loss carryforwards | 609 |  |  | 12,350 |
State income taxes | 17,727 |  |  | 10,293 |
Accrued liabilities | 2,174 |  |  | 2,162 |
Accrued compensation | 9,574 |  |  | — |
Stock compensation | 5,790 |  |  | 4,411 |
Other | 7,925 |  |  | 300 |
Total deferred tax assets | 52,840 |  |  | 37,804 |
Deferred Tax Liabilities |  |  |  |
Property, plant and equipment | (9,157 | ) |  | (833 | )
Intangible assets | (754,322 | ) |  | (496,485 | )
Total deferred tax liabilities | (763,479 | ) |  | (497,318 | )
Net deferred tax liability before valuation allowance | $ | (710,639 | ) |  | $ | (459,514 | )
Valuation allowance | (3,437 | ) |  | — |
Net deferred tax liability | $ | (714,076 | ) |  | $ | (459,514 | )
The net deferred tax liability shown above is net of $1.0 million of long-term deferred tax assets as of March 31, 2017 and $10.1 million of short-term deferred tax assets as of March 31, 2016. At March 31, 2017 we have a valuation allowance of $3.4 million related to certain deferred tax assets acquired from Fleet that we have concluded are not more likely than not to be realized. A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows:
| Year Ended March 31,
| 2017 |  | 2016 |  | 2015
(In thousands) |  |  | % |  |  |  |  | % |  |  |  |  | % |
Income tax provision at statutory rate | $ | 38,798 |  |  | 35.0 |  |  | $ | 55,015 |  |  | 35.0 |  |  | $ | 44,610 |  |  | 35.0 |
Foreign tax benefit | (2,322 | ) |  | (2.1 | ) |  | (2,894 | ) |  | (1.8 | ) |  | (2,019 | ) |  | (1.6 | )
State income taxes, net of federal income tax benefit | 1,820 |  |  | 1.7 |  |  | 3,284 |  |  | 2.0 |  |  | 2,865 |  |  | 2.3 |
Goodwill adjustment for sale of asset | 3,208 |  |  | 2.9 |  |  | — |  |  | — |  |  | 206 |  |  | 0.2 |
Nondeductible transaction costs | 686 |  |  | 0.6 |  |  | 1,071 |  |  | 0.7 |  |  | 2,936 |  |  | 2.3 |
Nondeductible compensation | 342 |  |  | 0.3 |  |  | 758 |  |  | 0.5 |  |  | 566 |  |  | 0.4 |
Other | (1,076 | ) |  | (1.0 | ) |  | 44 |  |  | — |  |  | 34 |  |  | — |
Total provision for income taxes | $ | 41,456 |  |  | 37.4 |  |  | $ | 57,278 |  |  | 36.4 |  |  | $ | 49,198 |  |  | 38.6 |
Uncertain tax liability activity is as follows:
| 2017 |  | 2016 |  | 2015
(In thousands) |  |  |  |  |
Balance – beginning of year | $ | 4,084 |  |  | $ | 3,420 |  |  | $ | 1,236 |
Additions based on tax positions related to the current year | 583 |  |  | 664 |  |  | 2,229 |
Reductions based on lapse of statute of limitations | (1,016 | ) |  | — |  |  | (45 | )
Balance – end of year | $ | 3,651 |  |  | $ | 4,084 |  |  | $ | 3,420 |
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 2015, 2016 or 2017. The amount of unrecognized tax benefits at March 31, 2017, 2016, and 2015 was $3.7 million, $4.1 million, and $3.4 million, respectively, which would reduce the effective tax rate by 3.3%, 2.6%, and 2.7%, respectively, if recognized. We do not anticipate any events or circumstances that would cause a significant change to these uncertainties during the ensuing year. 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, 2014 forward. The Company does not provide for U.S. income taxes on the undistributed earnings of our Australian subsidiary, which is intended to be indefinitely reinvested in operations outside of the United States. As of March 31, 2017, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $42.5 million. As of March 31, 2017, the amount of unrecognized deferred tax liability related to these earnings is estimated to be $4.8 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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