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Income Taxes | 12 Months Ended
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Mar. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 13. Income Taxes The provision (benefit) for income taxes for the fiscal years ended March 31, 2012, 2011 and 2010 were as follows (in thousands):
|  | Year Ended March 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,227 |  |  | $ | 1,577 |  |  | $ | (3,124 | )
State |  |  | 652 |  |  |  | 272 |  |  |  | (324 | )
Total current |  |  | 4,879 |  |  |  | 1,849 |  |  |  | (3,448 | )
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,061 | ) |  |  | 49 |  |  |  | 1,279 |
State |  |  | (319 | ) |  |  | (1,009 | ) |  |  | 163 |
Total deferred |  |  | (2,380 | ) |  |  | (960 | ) |  |  | 1,442 |
Total provision (benefit) |  | $ | 2,499 |  |  | $ | 889 |  |  | $ | (2,006 | )
A reconciliation of income taxes computed by applying the expected federal statutory income tax rates for fiscal years ended March 31, 2012, 2011 and 2010 of 34% to income before income taxes to the total income tax provision (benefit) reported in the Consolidated Statements of Operations is as follows (in thousands):
|  | Year Ended March 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Federal income tax at statutory rate |  | $ | 10,957 |  |  | $ | 1,687 |  |  | $ | (1,969 | )
Bargain purchase gain |  |  | (7,483 | ) |  |  | — |  |  |  | — |
Step-up in tax basis of assets acquired |  |  | (1,241 | ) |  |  | — |  |  |  | — |
State income taxes (benefit), net of federal benefit |  |  | 736 |  |  |  | 200 |  |  |  | (172 | )
True-up of tax credits |  |  | (418 | ) |  |  | — |  |  |  | — |
True-up of deferred tax rate |  |  | — |  |  |  | (950 | ) |  |  | (63 | )
True-up of net operating loss carryback claim |  |  | — |  |  |  | (73 | ) |  |  | 131 |
Other |  |  | (52 | ) |  |  | 25 |  |  |  | 67 |
Total income tax provision (benefit) |  | $ | 2,499 |  |  | $ | 889 |  |  | $ | (2,006 | )
Net current deferred tax assets and net long-term deferred tax liabilities at March 31, 2012 and 2011 were as follows (in thousands):
|  | March 31, |
|  | 2012 |  |  | 2011 |
Net current deferred tax assets |  |  |  |  |  |  |  |
Warranty reserves |  | $ | 3,662 |  |  | $ | 3,528 |
Salaries and wages |  |  | 1,065 |  |  |  | 465 |
Inventory |  |  | 761 |  |  |  | 213 |
Insurance reserves |  |  | 624 |  |  |  | 495 |
Repurchase reserves |  |  | 424 |  |  |  | 225 |
Goodwill |  |  | 270 |  |  |  | 277 |
Other |  |  | (149 | ) |  |  | (206 | )
|  | $ | 6,657 |  |  | $ | 4,997 |
Net long-term deferred tax (liabilities) assets |  |  |  |  |  |  |  |
Goodwill |  | $ | (22,505 | ) |  | $ | (20,495 | )
Loan discount |  |  | 13,488 |  |  |  | — |
Property, plant, equipment and depreciation |  |  | (4,693 | ) |  |  | (1,564 | )
Net operating loss carryforwards |  |  | 4,004 |  |  |  | 2,423 |
Other intangibles |  |  | (3,805 | ) |  |  | (551 | )
Deferred margin |  |  | 1,927 |  |  |  | 1,620 |
Bond discount |  |  | (1,218 | ) |  |  | — |
Buydown points |  |  | (1,060 | ) |  |  | — |
Stock based compensation |  |  | 983 |  |  |  | 717 |
Tax credits |  |  | 418 |  |  |  | — |
Reserves related to consumer loans sold |  |  | 315 |  |  |  | — |
Other |  |  | 718 |  |  |  | 359 |
|  | $ | (11,428 | ) |  | $ | (17,491 | )
During the fiscal 2012 fourth quarter, the Company made an election pursuant to section 338(h)(10) of the Internal Revenue Code relating to the acquisition of its insurance group, consisting of Standard Casualty Co., Standard Insurance Agency, Inc. and its subsidiary. This election allowed the Company to step up the tax basis of the insurance group’s assets to fair value, resulting in an offset to income tax expense of $1.2 million. During the fourth quarter of fiscal year 2011, the Company recognized an income tax benefit of $950,000 resulting from a decrease in Arizona statutory income tax rates. The Company recorded an insignificant amount of unrecognized tax benefits during the years ended March 31, 2012, 2011 and 2010, and there would be an insignificant effect on the effective tax rate if all unrecognized tax benefits were recognized. The Company classifies interest and penalties related to unrecognized tax benefits in income tax expense. At March 31, 2012, the Company has federal and state net operating loss carryforwards that total $18.3 million and $26.7 million, respectively, that begin to expire in 2031 and 2014, respectively. On November 6, 2009, the Worker, Homeownership, and Business Assistance Act of 2009 was enacted, which allowed, among other things, for certain federal net operating losses to be carried back up to five years to offset taxable income in certain prior years, for which the Company received a tax refund of $4.0 million in January 2011. The Company periodically evaluates the deferred tax assets based on the requirements established in FASB ASC 740, Income Taxes, which requires the recording of a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of the need for or amount of any valuation allowance involves significant management judgment and is based upon the evaluation of both positive and negative evidence, including management projections of anticipated taxable income. At March 31, 2012, the Company evaluated forecasted taxable income and determined that all of the deferred tax assets would be utilized in future periods. Ultimate realization of the deferred tax assets depends on our ability to meet these forecasts in future periods. At March 31, 2012, the Company’s deferred tax assets do not include $3.6 million of excess tax benefits from employee stock option exercises that are a component of its net operating loss carryforwards. Additional paid-in-capital will be increased by $3.6 million if and when such excess tax benefits are realized. Income tax returns are filed in the U.S. federal jurisdiction and in several state jurisdictions. In July 2010, the Company received a notice of examination from the Internal Revenue Service (“IRS”) for the Company’s federal income tax return for the fiscal year ended March 31, 2009. In July 2011, the IRS completed its examination resulting in an insignificant payment of additional taxes. The Company is no longer subject to examination by the IRS for years before fiscal year 2009. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to the Company’s financial position. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months.

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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 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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 Reference 6: 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 7: 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 8: 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 + Details
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