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Income Taxes | 12 Months Ended
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Mar. 31, 2017
Income Taxes [Abstract] |
Income Taxes | 16. Income Taxes The income tax expense is as follows:
|  | Years Ended March 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current tax expense |  |  |  |  |  |  |  |  |
Federal |  | $ | 9,451,000 |  |  | $ | 12,400,000 |  |  | $ | 1,523,000 |
State |  |  | 318,000 |  |  |  | 1,995,000 |  |  |  | 1,100,000 |
Foreign |  |  | 1,455,000 |  |  |  | 803,000 |  |  |  | 527,000 |
Total current tax expense |  |  | 11,224,000 |  |  |  | 15,198,000 |  |  |  | 3,150,000 |
Deferred tax expense (benefit) |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,291,000 |  |  |  | (2,929,000 | ) |  |  | 5,553,000 |
State |  |  | 2,174,000 |  |  |  | (757,000 | ) |  |  | 93,000 |
Foreign |  |  | (384,000 | ) |  |  | (33,000 | ) |  |  | 272,000 |
Total deferred tax expense (benefit) |  |  | 6,081,000 |  |  |  | (3,719,000 | ) |  |  | 5,918,000 |
Total income tax expense |  | $ | 17,305,000 |  |  | $ | 11,479,000 |  |  | $ | 9,068,000 |
Deferred income taxes consist of the following at March 31:
|  | 2017 |  |  | 2016 |
Assets |  |  |  |  |  |
Accounts receivable valuation |  | $ | 4,697,000 |  |  | $ | 6,438,000 |
Allowance for customer incentives |  |  | 2,894,000 |  |  |  | 769,000 |
Inventory obsolescence reserve |  |  | 1,608,000 |  |  |  | 1,431,000 |
Stock options |  |  | 1,971,000 |  |  |  | 1,714,000 |
Intangibles, net |  |  | 339,000 |  |  |  | 380,000 |
Estimate for returns |  |  | 3,191,000 |  |  |  | 7,938,000 |
Accrued compensation |  |  | 1,785,000 |  |  |  | 1,485,000 |
Net operating losses |  |  | 834,000 |  |  |  | 2,070,000 |
Tax credits |  |  | - |  |  |  | 1,660,000 |
Other |  |  | 2,065,000 |  |  |  | 2,583,000 |
Total deferred tax assets |  | $ | 19,384,000 |  |  | $ | 26,468,000 |
Liabilities |  |  |  |  |  |  |  |
Property and equipment, net |  |  | (1,605,000 | ) |  |  | (1,119,000 | )
Other |  |  | (4,413,000 | ) |  |  | (6,277,000 | )
Total deferred tax liabilities |  | $ | (6,018,000 | ) |  | $ | (7,396,000 | )
Less valuation allowance |  | $ | - |  |  | $ | - |
Net deferred tax assets |  | $ | 13,366,000 |  |  | $ | 19,072,000 |
Net long-term deferred income tax liability |  |  | (180,000 | ) |  |  | (196,000 | )
Net long-term deferred income tax asset |  |  | 13,546,000 |  |  |  | 19,268,000 |
Total |  | $ | 13,366,000 |  |  | $ | 19,072,000 |
At March 31, 2017, the Company had state net operating loss carryforwards of $6,334,000. The net operating loss carryforwards expire between fiscal years 2021 and 2033. Realization of the Company's deferred tax assets is dependent upon the Company’s ability to generate sufficient taxable income. Management reviews the Company's deferred tax assets on a jurisdiction by jurisdiction basis to determine whether it is more likely than not that the deferred tax assets will be realized. Management believes that it is more likely than not that future taxable income will be sufficient to realize the recorded deferred tax assets. In evaluating this ability, management considers long-term agreements with the Company’s major customers and the Company also periodically compares its forecasts to actual results. Even though there can be no assurance that the forecasted results will be achieved, the history of income in all other jurisdictions provides sufficient positive evidence that no valuation allowance is needed. For the years ended March 31, 2017, 2016, and 2015, the primary components of the Company’s income tax expense were (i) the current liability due to federal, state and foreign income taxes, (ii) foreign income taxed at rates that are different from the federal statutory rate, (iii) non-deductible expenses in connection with the fair value adjustments on the warrants, (iv) impact of the non-deductible executive compensation under Internal Revenue Code Section 162(m), (v) the impact of uncertain tax positions, and (vi) the change in the blended state rate. In addition, the Company’s income tax expense for the year ended March 31, 2017 was positively impacted by $748,000 of excess tax benefits as a result of the early adoption of the FASB’s new guidance on share-based compensation (see Note 2). The difference between the income tax expense at the federal statutory rate and the Company’s effective tax rate is as follows:
|  | Years Ended March 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Statutory federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income tax rate, net of federal benefit |  |  | 2.2 | % |  |  | 4.0 | % |  |  | 2.2 | %
Change in deferred tax rate |  |  | - | % |  |  | - | % |  |  | (0.2 | )%
Excess tax benefit from stock compensation |  |  | (1.4 | )% |  |  | - | % |  |  | - | %
Foreign income taxed at different rates |  |  | (0.7 | )% |  |  | (0.8 | )% |  |  | (0.9 | )%
Warrants |  |  | (2.4 | )% |  |  | 8.2 | % |  |  | 0.8 | %
Non-deductible executive compensation |  |  | 0.8 | % |  |  | 2.2 | % |  |  | 3.4 | %
Uncertain Tax Positions |  |  | (0.2 | )% |  |  | 0.4 | % |  |  | 2.5 | %
Other income tax |  |  | (1.8 | )% |  |  | 3.1 | % |  |  | 1.4 | %
|  |  | 31.5 | % |  |  | 52.1 | % |  |  | 44.2 | %
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions with varying statutes of limitations. At March 31, 2017, the Company is not under examination in any jurisdiction and the years ended March 31, 2017, 2016, and 2015 remain subject to examination. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Years Ended March 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Balance at beginning of period |  | $ | 1,181,000 |  |  | $ | 1,117,000 |  |  | $ | 540,000 |
Additions based on tax positions related to the current year |  |  | 141,000 |  |  |  | 57,000 |  |  |  | 359,000 |
Additions for tax positions of prior year |  |  | 106,000 |  |  |  | 217,000 |  |  |  | 336,000 |
Reductions for tax positions of prior year |  |  | - |  |  |  | (210,000 | ) |  |  | (118,000 | )
Settlements |  |  | (336,000 | ) |  |  | - |  |  |  | - |
Balance at end of period |  | $ | 1,092,000 |  |  | $ | 1,181,000 |  |  | $ | 1,117,000 |
At March 31, 2017, 2016 and 2015, there are $840,000, $678,000 and $958,000 of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as part of income tax expense. During the years ended March 31, 2017, 2016, and 2015, the Company recognized approximately $51,000, $34,000, and $(56,000) in interest and penalties. The Company had approximately $141,000 and $90,000 for the payment of interest and penalties accrued at March 31, 2017 and 2016, respectively.

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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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