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Provision for Taxes | 12 Months Ended
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Mar. 31, 2017
Disclosure Text Block [Abstract] |
Provision for Taxes | Earnings before taxes and the provision for taxes consisted of the following:
|  | Years Ended March 31,
|  | 2017 |  | 2016 |  | 2015
|  | (In thousands)
Pretax earnings: |  |  |  |  |  |
U.S. | $ | 609,589 | $ | 745,194 | $ | 541,371
Non-U.S. |  | 18,769 |  | 23,717 |  | 20,047
Total pretax earnings | $ | 628,358 | $ | 768,911 | $ | 561,418
Current provision (benefit) |  |  |  |  |  |
Federal | $ | 38,723 | $ | 118,974 | $ | 112,634
State |  | 10,818 |  | 15,988 |  | 14,248
Non-U.S. |  | 3,334 |  | 3,303 |  | 2,599
|  | 52,875 |  | 138,265 |  | 129,481
Deferred provision (benefit) |  |  |  |  |  |
Federal |  | 160,527 |  | 125,950 |  | 67,306
State |  | 15,210 |  | 12,561 |  | 5,256
Non-U.S. |  | 1,322 |  | 3,134 |  | 2,634
|  | 177,059 |  | 141,645 |  | 75,196
Provision for income tax expense | $ | 229,934 | $ | 279,910 | $ | 204,677
Income taxes paid (net of income tax refunds received) | $ | 36,880 | $ | 141,901 | $ | 195,072
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,
|  | 2017 |  | 2016 |  | 2015
Statutory federal income tax rate |  | 35.00% |  | 35.00% |  | 35.00%
Increase (reduction) in rate resulting from: |  |  |  |  |  |
State taxes, net of federal benefit |  | 2.66% |  | 2.34% |  | 2.21%
Foreign rate differential |  | (0.31)% |  | (0.24)% |  | (0.32)%
Federal tax credits |  | (0.41)% |  | (0.19)% |  | (0.29)%
Dividend received deduction |  | (0.03)% |  | (0.02)% |  | (0.03)%
Other |  | (0.32)% |  | (0.49)% |  | (0.11)%
Actual tax expense of operations |  | 36.59% |  | 36.40% |  | 36.46%
Significant components of our deferred tax assets and liabilities were as follows:
|  | March 31,
|  | 2017 |  | 2016
|  | (In thousands)
Deferred tax assets: |  |  |  |
Net operating loss and credit carry forwards | $ | 1,948 | $ | 1,462
Accrued expenses |  | 168,331 |  | 185,088
Policy benefit and losses, claims and loss expenses payable, net |  | 21,287 |  | 21,911
Unrealized losses |  | – |  | –
Total deferred tax assets | $ | 191,566 | $ | 208,461
Deferred tax liabilities: |  |  |  |
Property, plant and equipment | $ | 986,334 | $ | 831,914
Deferred policy acquisition costs |  | 20,901 |  | 20,557
Unrealized gains |  | 19,140 |  | 9,593
Other |  | 200 |  | 9
Total deferred tax liabilities |  | 1,026,575 |  | 862,073
Net deferred tax liability | $ | 835,009 | $ | 653,612
The net operating loss and credit carry-forwards in the above table are primarily attributable to $29.0 million of state net operating losses that will begin to expire March 31, 2018 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 March 31, 2016 was $23.9 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 $2.8 million. At March 31, 2017, the amount of unrecognized tax benefits and the amount that would favorably affect our effective tax rate was $26.7 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,
|  | 2017 |  | 2016
|  | (In thousands)
Unrecognized tax benefits beginning balance | $ | 23,912 | $ | 19,929
Additions based on tax positions related to the current year |  | 2,964 |  | 4,313
Reductions for tax positions of prior years |  | (156) |  | (327)
Settlements |  | – |  | (3)
Unrecognized tax benefits ending balance | $ | 26,720 | $ | 23,912
We recognize interest related to unrecognized tax benefits as interest expense, and penalties as operating expenses. At March 31, 2016, the amount of interest and penalties accrued on unrecognized tax benefits was $5.9 million, net of tax. During the current year we recorded expense from interest and penalties in the amount of $0.8 million, net of tax. At March 31, 2017, the amount of interest and penalties accrued on unrecognized tax benefits was $6.7 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, 2014. No provision was made for U.S. taxes payable on undistributed foreign earnings since these amounts are permanently reinvested; the amount of this unrecognized deferred tax liability is not practical to determine at this time.

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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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