Entity information:
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.