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Provision for Taxes | 12 Months Ended
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Mar. 31, 2013
Disclosure Text Block [Abstract] |
Note 14. Provision for Taxes | Note 14. Provision for Taxes Earnings before taxes and the provision for taxes consisted of the following:
|  | Years Ended March 31,
|  | 2013 |  | 2012 |  | 2011
|  | (In thousands)
Pretax earnings: |  |  |  |  |  |
U.S. | $ | 389,342 | $ | 302,748 | $ | 270,695
Non-U.S. |  | 19,145 |  | 22,888 |  | 18,619
Total pretax earnings | $ | 408,487 | $ | 325,636 | $ | 289,314
Current provision (benefit) |  |  |  |  |  |
Federal | $ | 116,788 | $ | 10,899 | $ | 14,784
State |  | 12,199 |  | 5,514 |  | 7,475
Non-U.S. |  | 3,344 |  | 4,786 |  | 3,861
|  | 132,331 |  | 21,199 |  | 26,120
Deferred provision (benefit) |  |  |  |  |  |
Federal |  | 8,466 |  | 89,327 |  | 70,653
State |  | 1,458 |  | 8,310 |  | 7,300
Non-U.S. |  | 1,524 |  | 1,433 |  | 1,666
|  | 11,448 |  | 99,070 |  | 79,619
Provision for income tax expense | $ | 143,779 | $ | 120,269 | $ | 105,739
Income taxes paid (net of income tax refunds received) | $ | 144,682 | $ | 10,739 | $ | 14,265
The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income before taxes was as follows:
|  | Years Ended March 31,
|  | 2013 |  | 2012 |  | 2011
|  | (In percentages)
Statutory federal income tax rate |  | 35.00% |  | 35.00% |  | 35.00%
Increase (reduction) in rate resulting from: |  |  |  |  |  |
State taxes, net of federal benefit |  | 2.08% |  | 2.70% |  | 3.24%
Foreign rate differential |  | (0.45)% |  | (0.55)% |  | (0.34)%
Federal tax credits |  | (0.51)% |  | (0.21)% |  | (0.18)%
Interest on deferred tax |  | 0.00% |  | 0.12% |  | 0.13%
Dividend received deduction |  | (0.03)% |  | (0.06)% |  | (0.08)%
Other |  | (0.89)% |  | (0.07)% |  | (1.22)%
Actual tax expense of operations |  | 35.20% |  | 36.93% |  | 36.55%
Significant components of our deferred tax assets and liabilities were as follows:
|  | March 31,
|  | 2013 |  | 2012
|  | (In thousands)
Deferred tax assets: |  |  |  |
Net operating loss and credit carry forwards | $ | 2,007 | $ | 3,080
Accrued expenses |  | 153,807 |  | 126,361
Policy benefit and losses, claims and loss expenses payable, net |  | 24,137 |  | 15,493
Unrealized losses |  | - |  | 6,649
Other |  | 454 |  | -
Total deferred tax assets | $ | 180,405 | $ | 151,583
Deferred tax liabilities: |  |  |  |
Property, plant and equipment | $ | 552,548 | $ | 519,409
Deferred policy acquisition costs |  | 12,270 |  | 2,838
Unrealized gains |  | 9,245 |  | -
Other |  | - |  | 328
Total deferred tax liabilities |  | 574,063 |  | 522,575
Net deferred tax liability | $ | 393,658 | $ | 370,992
The net operating loss and credit carry-forwards in the above table are primarily attributable to $14.7 million of state net operating losses that will begin to expire March 31, 2014 if not utilized. ASC 740 prescribes a minimum recognition and measurement methodology that a tax position is required to meet before being recognized in the financial statements. The total amount of unrecognized tax benefits at April 1, 2012 was $11.8 million. This entire amount of unrecognized tax benefits if resolved in our favor, would favorably impact our effective tax rate. During the current year we recorded tax expense (net of settlements), resulting from uncertain tax positions in the amount of $2.1 million. At March 31, 2013, the amount of unrecognized tax benefits and the amount that would favorably affect our effective tax rate was $13.9 million. A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period are as follows:
|  | Unrecognized Tax Benefits
|  | (In thousands)
Unrecognized tax benefits as of March 31, 2012 | $ | 11,780
Additions based on tax positions related to the current year |  | 2,163
Reductions for tax positions of prior years |  | -
Settlements |  | (81 | )
Unrecognized tax benefits as of March 31, 2013 | $ | 13,862
We recognize interest related to unrecognized tax benefits as interest expense, and penalties as operating expenses. At April 1, 2012, the amount of interest and penalties accrued on unrecognized tax benefits was $4.0 million, net of tax. During the current year we recorded expense from interest in the amount of $0.3 million, net of tax. At March 31, 2013, the amount of interest and penalties accrued on unrecognized tax benefits was $4.3 million, net of tax. We file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With some exceptions, we are no longer subject to audit for years prior to the fiscal year ended March 31, 2010. No provision was made for U.S. taxes payable on undistributed foreign earnings since these amounts are permanently reinvested.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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=6907707&loc=d3e32537-109319 Reference 7: 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=6907707&loc=d3e32639-109319 Reference 8: 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=6907707&loc=d3e32559-109319 + Details
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