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Provision for Taxes | 12 Months Ended
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Mar. 31, 2014
Disclosure Text Block [Abstract] |
Provision for Taxes | Earnings before taxes and the provision for taxes consisted of the following:
|  | Years Ended March 31,
|  | 2014 |  | 2013 |  | 2012
|  | (In thousands)
Pretax earnings: |  |  |  |  |  |
U.S. | $ | 516,207 | $ | 389,342 | $ | 302,748
Non-U.S. |  | 21,315 |  | 19,145 |  | 22,888
Total pretax earnings | $ | 537,522 | $ | 408,487 | $ | 325,636
Current provision (benefit) |  |  |  |  |  |
Federal | $ | 131,246 | $ | 116,788 | $ | 10,899
State |  | 12,641 |  | 12,199 |  | 5,514
Non-U.S. |  | 3,787 |  | 3,344 |  | 4,786
|  | 147,674 |  | 132,331 |  | 21,199
Deferred provision (benefit) |  |  |  |  |  |
Federal |  | 37,979 |  | 8,466 |  | 89,327
State |  | 7,553 |  | 1,458 |  | 8,310
Non-U.S. |  | 1,925 |  | 1,524 |  | 1,433
|  | 47,457 |  | 11,448 |  | 99,070
Provision for income tax expense | $ | 195,131 | $ | 143,779 | $ | 120,269
Income taxes paid (net of income tax refunds received) | $ | 138,384 | $ | 144,682 | $ | 10,739
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,
|  | 2014 |  | 2013 |  | 2012
|  | (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 |  | 2.38% |  | 2.08% |  | 2.70%
Foreign rate differential |  | (0.33)% |  | (0.45)% |  | (0.55)%
Federal tax credits |  | (0.32)% |  | (0.51)% |  | (0.21)%
Interest on deferred tax |  | 0.00% |  | 0.00% |  | 0.12%
Dividend received deduction |  | (0.03)% |  | (0.03)% |  | (0.06)%
Other |  | (0.40)% |  | (0.89)% |  | (0.07)%
Actual tax expense of operations |  | 36.30% |  | 35.20% |  | 36.93%
Significant components of our deferred tax assets and liabilities were as follows:
|  | March 31,
|  | 2014 |  | 2013
|  | (In thousands)
Deferred tax assets: |  |  |  |
Net operating loss and credit carry forwards | $ | 2,040 | $ | 2,007
Accrued expenses |  | 150,935 |  | 153,807
Policy benefit and losses, claims and loss expenses payable, net |  | 22,479 |  | 24,137
Unrealized losses |  | 1,857 |  | -
Other |  | - |  | 454
Total deferred tax assets | $ | 177,311 | $ | 180,405
Deferred tax liabilities: |  |  |  |
Property, plant and equipment | $ | 593,654 | $ | 552,548
Deferred policy acquisition costs |  | 16,250 |  | 12,270
Unrealized gains |  | - |  | 9,245
Other |  | 3 |  | -
Total deferred tax liabilities |  | 609,907 |  | 574,063
Net deferred tax liability | $ | 432,596 | $ | 393,658
The net operating loss and credit carry-forwards in the above table are primarily attributable to $15.4 million of state net operating losses that will begin to expire March 31, 2015 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, 2013 was $13.9 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 $3.0 million. At March 31, 2014, the amount of unrecognized tax benefits and the amount that would favorably affect our effective tax rate was $16.9 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
|  | March 31,
|  | 2014 |  | 2013
|  | (In thousands)
Unrecognized tax benefits beginning balance | $ | 13,862 | $ | 11,780
Additions based on tax positions related to the current year |  | 3,000 |  | 2,163
Settlements |  | (12 | ) | (81 | )
Unrecognized tax benefits ending balance | $ | 16,850 | $ | 13,862
We recognize interest related to unrecognized tax benefits as interest expense, and penalties as operating expenses. At April 1, 2013, the amount of interest and penalties accrued on unrecognized tax benefits was $4.3 million, net of tax. During the current year we recorded expense from interest and penalties in the amount of $0.4 million, net of tax. At March 31, 2014, the amount of interest and penalties accrued on unrecognized tax benefits was $4.7 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, 2011. 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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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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