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INCOME TAXES | 12 Months Ended
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Mar. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | (J) Income Taxes The provision for income taxes from continuing operations includes the following components:
|  | For the Years Ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Current Provision (Benefit) - |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 67,913 |  |  | $ | (91,304 | ) |  | $ | 53,570 |
State |  |  | 9,587 |  |  |  | 3,004 |  |  |  | 9,414 |
|  |  | 77,500 |  |  |  | (88,300 | ) |  |  | 62,984 |
Deferred Provision (Benefit) - |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 7,207 |  |  |  | 108,467 |  |  |  | (726 | )
State |  |  | 5,239 |  |  |  | 4,337 |  |  |  | (1,986 | )
|  |  | 12,446 |  |  |  | 112,804 |  |  |  | (2,712 | )
Provision for Income Taxes |  | $ | 89,946 |  |  | $ | 24,504 |  |  | $ | 60,272 |
The effective tax rates vary from the federal statutory rates due to the following items:
|  | For the Years Ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Earnings Before Income Taxes |  | $ | 424,112 |  |  | $ | 255,695 |  |  | $ | 283,778 |
Income Taxes at Statutory Rate |  | $ | 89,063 |  |  | $ | 53,998 |  |  | $ | 59,690 |
Increases (Decreases) in Tax Resulting from - |  |  |  |  |  |  |  |  |  |  |  |
State Income Taxes, net |  |  | 11,713 |  |  |  | 3,579 |  |  |  | 5,868 |
Statutory Depletion in Excess of Cost |  |  | (5,263 | ) |  |  | (3,078 | ) |  |  | (3,834 | )
Excess Tax Benefit from Stock Compensation |  |  | (3,229 | ) |  |  | 307 |  |  |  | (651 | )
Meals and Entertainment Disallowance |  |  | 220 |  |  |  | 537 |  |  |  | 610 |
Limitation on Officers’ Compensation |  |  | 1,503 |  |  |  | 1,018 |  |  |  | 1,434 |
Impact of CARES Act of 2020 |  |  | — |  |  |  | (35,936 | ) |  |  | — |
Credits |  |  | (400 | ) |  |  | (2,150 | ) |  |  | (940 | )
Valuation Allowance |  |  | 300 |  |  |  | 2,212 |  |  |  | (2,100 | )
Change in Reserves |  |  | (2,916 | ) |  |  | 4,200 |  |  |  | — |
Other |  |  | (1,045 | ) |  |  | (183 | ) |  |  | 195 |
Provision for Income Taxes |  | $ | 89,946 |  |  | $ | 24,504 |  |  | $ | 60,272 |
Effective Tax Rate |  |  | 21 | % |  |  | 10 | % |  |  | 21 | %
Components of deferred income taxes are as follows:
|  | March 31, |
|  | 2021 |  |  | 2020 |
|  | (dollars in thousands) |
Items Giving Rise to Deferred Tax Liabilities - |  |  |  |  |  |  |  |
Excess Tax Depreciation and Amortization |  | $ | (220,269 | ) |  | $ | (199,096 | )
State Income Taxes, net |  |  | (21,923 | ) |  |  | (12,225 | )
Depletable Assets |  |  | (3,540 | ) |  |  | — |
Right-of-Use Assets |  |  | (6,271 | ) |  |  | (5,441 | )
Other |  |  | (6,332 | ) |  |  | (5,764 | )
Total Deferred Tax Liabilities |  | $ | (258,335 | ) |  | $ | (222,526 | )
Items Giving Rise to Deferred Tax Assets - |  |  |  |  |  |  |  |
Change in Accruals |  | $ | 12,046 |  |  | $ | 9,373 |
Depletable Assets |  |  | — |  |  |  | 12,632 |
Inventory |  |  | 1,243 |  |  |  | 7,217 |
Bad Debts |  |  | 1,812 |  |  |  | 2,642 |
Long-term Incentive Compensation Plan |  |  | 3,396 |  |  |  | 5,590 |
Credits and Other Carryforwards |  |  | 17,338 |  |  |  | 19,861 |
Lease Liability |  |  | 9,369 |  |  |  | 11,384 |
Pension |  |  | 906 |  |  |  | 937 |
Subtotal |  |  | 46,110 |  |  |  | 69,636 |
Valuation Allowance |  |  | (13,761 | ) |  |  | (13,777 | )
Total Deferred Tax Assets |  | $ | 32,349 |  |  | $ | 55,859 |
We record Deferred Tax Assets and Liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the Deferred Tax Assets. If, based on the weight of available evidence, it is more likely than not that a Deferred Tax Asset will not be realized, we record a Valuation Allowance. We have state net operating loss carryforwards of $3.7 million at March 31, 2021, and approximately $5.4 million at March 31, 2020. We have federal Research and Development (R&D) and state income tax credits of $1.1 million at March 31, 2021, and $2.2 million at March 31, 2020, net of Valuation Allowances. The federal R&D credits can be carried forward 20 years and the state income tax credits may be carried forward indefinitely. We file income tax returns in U.S. federal and various state jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 31, 2018 and forward. Uncertain tax positions We are subject to audit examinations at federal, state, and local levels by tax authorities in those jurisdictions who may challenge the treatment or reporting of any return item. The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of these challenges is subject to uncertainty. We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to ultimate outcome if challenged. We measure and record tax benefit or expense only when the more-likely-than-not threshold is met. The change in unrecognized tax benefits for the years ended March 31, 2021, 2020, and 2019 was as follows:
|  | For the Years Ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Balance at Beginning of Year |  | $ | 4,200 |  |  | $ | — |  |  | $ | — |
Increase Related to Current Tax Positions |  |  | 1,284 |  |  |  | 4,200 |  |  |  | — |
Decrease Related to Current Tax Positions |  |  | (4,200 | ) |  |  | — |  |  |  | — |
Payments |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 1,284 |  |  | $ | 4,200 |  |  | $ | — |
We recorded a $4.2 million reserve as a result of a position we took on our fiscal 2020 federal tax return, which is related to the interest limitation under IRC Section 163(j) and the resulting carryback allowed under the CARES Act. This tax return position reflected an expected update to U.S. Department of the Treasury regulations. During fiscal 2021, the U.S. Department of Treasury issued updated regulations under IRC Section 163(j). As a result, in fiscal 2021 we reversed the reserve recorded in fiscal 2020. We classify interest and penalties related to uncertain tax positions as current income tax expense. We recorded no interest and penalties for each of the fiscal years ended March 31, 2021, 2020, and 2019. Tax Cuts and Jobs Act CARES Act The CARES Act was enacted on March 27, 2020. The CARES Act, among other changes, allows for a five-year carryback of net operating losses (NOL) generated beginning in 2018 and ending before 2021. In March 2020, we recorded a tax benefit of $35.9 million related to the carryback and utilization of NOLs in prior-year tax periods at higher rates than the current statutory rate.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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