XML 95 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Mar. 29, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes The provision for income taxes for fiscal years 2014, 2013 and 2012 were as follows (in thousands):
| Fiscal Year
| 2014 |  | 2013 |  | 2012
Current |  |  |  |  |
Federal | $ | 7,630 |  |  | $ | 3,955 |  |  | $ | 4,227 |
State | 913 |  |  | 263 |  |  | 652 |
Total current | 8,543 |  |  | 4,218 |  |  | 4,879 |
Deferred |  |  |  |  |
Federal | 586 |  |  | 1,416 |  |  | (2,061 | )
State | (30 | ) |  | 717 |  |  | (319 | )
Total deferred | 556 |  |  | 2,133 |  |  | (2,380 | )
Total income tax provision | $ | 9,099 |  |  | $ | 6,351 |  |  | $ | 2,499 |
A reconciliation of income taxes computed by applying the expected federal statutory income tax rates of 35% for fiscal year 2014 and 34% for fiscal years 2013 and 2012 to income before income taxes to the total income tax provision reported in the Consolidated Statements of Comprehensive Income is as follows (in thousands):
| Fiscal Year
| 2014 |  | 2013 |  | 2012
Federal income tax at statutory rate | $ | 9,732 |  |  | $ | 5,660 |  |  | $ | 10,957 |
State income taxes, net of federal benefit | 849 |  |  | 597 |  |  | 736 |
Domestic production activities deduction | (783 | ) |  | (123 | ) |  | (113 | )
Change in deferred tax rate | (557 | ) |  | 966 |  |  | — |
Tax credits | (319 | ) |  | (595 | ) |  | (505 | )
Bargain purchase gain | — |  |  | — |  |  | (7,483 | )
Step-up in tax basis of assets acquired | — |  |  | — |  |  | (1,241 | )
Other | 177 |  |  | (154 | ) |  | 148 |
Total income tax provision | $ | 9,099 |  |  | $ | 6,351 |  |  | $ | 2,499 |
Net current deferred tax assets and net long-term deferred tax liabilities were as follows (in thousands):
| March 29, 2014 |  | March 30, 2013
Net current deferred tax assets (liabilities) |  |  |
Net operating loss carryforwards | $ | 3,653 |  |  | $ | — |
Warranty reserves | 3,447 |  |  | 2,999 |
Salaries and wages | 2,432 |  |  | 1,182 |
Inventory | 1,164 |  |  | 1,381 |
Deferred revenue | 951 |  |  | 720 |
Policy acquisition costs | (946 | ) |  | (716 | )
Repurchase reserves | 831 |  |  | 665 |
Insurance reserves | 655 |  |  | 693 |
Other | 126 |  |  | (200 | )
| $ | 12,313 |  |  | $ | 6,724 |
Net long-term deferred tax (liabilities) assets |  |  |
Goodwill | $ | (24,597 | ) |  | $ | (25,018 | )
Loan discount | 9,509 |  |  | 10,736 |
Property, plant, equipment and depreciation | (5,454 | ) |  | (5,141 | )
Other intangibles | (2,833 | ) |  | (3,107 | )
Stock based compensation | 2,094 |  |  | 1,263 |
Deferred margin | 1,625 |  |  | 1,732 |
Bond discount | (1,036 | ) |  | (1,046 | )
Net operating loss carryforwards | 665 |  |  | 5,077 |
Buydown points | (662 | ) |  | (717 | )
Reserves related to consumer loans sold | 402 |  |  | 478 |
Tax credits | 159 |  |  | 410 |
Salaries and wages | — |  |  | 860 |
Other | 180 |  |  | 723 |
| $ | (19,948 | ) |  | $ | (13,750 | )
The effective income tax rate for the current year was positively impacted from the purchase of all noncontrolling interests in Fleetwood and the timing of certain tax credits and deductions. As Cavco’s taxable income has grown, we have realized additional benefit from tax deductions established to favor domestic manufacturing operations. We also received benefit from tax credits, including the Work Opportunity Tax Credit and the New Energy Efficient Home Credit, which expired on December 31, 2013, and if not renewed, we will no longer be able to utilize these tax credits in the future. During fiscal year 2013, the Company recognized an additional income tax benefit of $966,000 resulting from changes in state income tax rates applied to the Company's deferred tax amounts and income projections reaching a higher federal income tax rate. During the fourth quarter of fiscal year 2012, 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. 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 2012. The Company recorded an insignificant amount of unrecognized tax benefits during fiscal years 2014, 2013 and 2012, 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 29, 2014, the Company has federal and state net operating loss carryforwards that total $20.3 million and $28.2 million, respectively, that begin to expire in 2031 and 2014, respectively. As a result, the Company recorded a $218,000 valuation allowance against the related deferred tax asset. The Company periodically evaluates the deferred tax assets based on the requirements established in ASC 740 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 29, 2014, the Company evaluated forecasted taxable income and determined that, except as described above, 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 29, 2014, the Company’s deferred tax assets do not include $4.1 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 $4.1 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 2011. 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.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
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/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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration