XML 35 R19.htm IDEA: XBRL DOCUMENT
v3.23.1

Provision for Taxes | 12 Months Ended
--- | ---
Mar. 31, 2023
Disclosure Text Block [Abstract] |
Provision for Taxes | Note 14. Provision for Taxes Earnings before taxes and the provision for taxes consisted of the following: Years Ended March 31, 2023 2022 2021 (In thousands) Pretax earnings: U.S. $ 1,178,264 $ 1,431,155 $ 773,030 Non-U.S. 39,659 44,342 23,628 Total pretax earnings $ 1,217,923 $ 1,475,497 $ 796,658 Current provision Federal $ 115,171 $ 189,488 $ 100,521 State 42,121 55,518 16,572 Non-U.S. 5,150 6,893 3,404 162,442 251,899 120,497 Deferred provision Federal 114,355 90,852 53,957 State 14,077 6,355 9,795 Non-U.S. 4,051 3,105 1,553 132,483 100,312 65,305 Provision for income tax expense $ 294,925 $ 352,211 $ 185,802 Income taxes paid (received) $ 145,680 $ ( 4,548 ) $ 29,044 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, 2023 2022 2021 (In percentages) Statutory federal income tax rate 21.00 % 21.00 % 21.00 % Increase (reduction) in rate resulting from: State taxes, net of federal benefit 3.56 % 3.24 % 2.53 % Foreign rate differential 0.08 % 0.05 % – % Federal tax credits (0.48) % (0.19) % (0.99) % Tax-exempt income (0.08) % (0.03) % (0.08) % Dividend received deduction (0.01) % – % (0.01) % Other 0.15 % (0.20) % 0.87 % Actual tax expense of operations 24.22 % 23.87 % 23.32 % Significant components of our deferred tax assets and liabilities were as follows: March 31, 2023 2022 Deferred tax assets: (In thousands) Net operating loss and credit carry forwards $ 33,778 $ 36,394 Accrued expenses 112,971 103,723 Policy benefit and losses, claims and loss expenses payable, net 31,436 30,572 Unrealized losses on investments 48,179 – Operating leases 12,058 15,540 Total deferred tax assets $ 238,422 $ 186,229 Deferred tax liabilities: Property, plant and equipment $ 1,545,628 $ 1,405,604 Operating leases 12,175 15,540 Deferred policy acquisition costs 12,038 12,962 Unrealized gains on investments – 36,299 Other 3,008 1,973 Total deferred tax liabilities 1,572,849 1,472,378 Net deferred tax liability $ 1,334,427 $ 1,286,149 On March 27, 2020, former President Trump signed into U.S. federal law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was aimed at providing emergency assistance and health care for individuals, families, and businesses affected by COVID-19 global pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. In particular, the CARES Act allows for net operating losses (“NOL“) generated in 2018, 2019, or 2020 to be carried back 5 years. As a result, we filed applicable forms with the IRS to carryback NOLs. The statutory tax rate for the carryback years was 35% as compared to 21% at present. Consequently, we recognized a benefit amount of $ 146 million for fiscal year 2020. These refund claims total approximately $ 366 million, of which we have received approximately $ 243 million in fiscal 2022 and are reflected in prepaid expense. As refunds are received, they will reduce this amount. We have estimated and recorded the overall effects of the CARES Act and do not anticipate a material change. As a result, the NOL and credit carry-forwards in the above table are primarily attributable to state NOLs. As of March 31, 2023 and 2022, we had state NOLs of $ 480.0 million and $ 458.5 million, respectively, that will begin to expire March 31, 2024, if not utilized. On March 3, 2021, the IRS notifiied us that our federal inome tax returns for the tax years March 31, 2014, 2015, 2016, 2018 and 2019 were selected for examination. The IRS agent in charged confirmed that this is a limited scope examination arising out of NOL carryback claims and is a standard procedure for the IRS to process the refund. As such, the scope of the exam is expected to be limited to the items reported on Forms 1139 and related schedules only. As of now, we are still working with the IRS agent and there is no audit adjustment for any of the above tax periods. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable. We account for uncertainty in income taxes by recognizing the tax benefit or expense from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits and expenses recognized in the consolidated financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. 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, 2023 2022 (In thousands) Unrecognized tax benefits beginning balance $ 48,851 $ 31,069 Additions based on tax positions related to the current year 7,226 8,257 Reductions for tax positions of prior years (443) – Additions for tax provisions of prior years 2,473 9,525 Unrecognized tax benefits ending balance $ 58,107 $ 48,851 We recognize interest related to unrecognized tax benefits as interest expense, and penalties as income tax expenses. As of March 31, 2023 and 2022, the amount of interest accrued on unrecognized tax benefits was $ 17.7 million and $ 15.7 million, respectively, net of tax. During the current year, we recorded expense from interest in the amount of $ 2.0 million, net of tax. We file income tax returns in the U.S. federal jurisdiction, and various states and Canadian jurisdictions. While the Company has ongoing audits in Canada and various state jurisdictions, there have been no proposed or anticipated adjustments that would materially impact the financial statements. With some exceptions, we are no longer subject to audit for years prior to the fiscal year ended March 31, 2020.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration