v2.4.0.6
Income Taxes
 12 Months Ended
Mar. 31, 2012
Income Taxes [Abstract]  
Income Taxes

Note E — Income Taxes

The income tax provision consisted of the following for the three fiscal years ended March 31, 2010, 2011 and 2012:

 

                         
    2010     2011     2012  

Current — Federal

   $ 14,333,000     $ 8,888,000     $ 5,896,000  

Current — State

     2,746,000       3,228,000       1,938,000  
   

 

 

    

 

 

    

 

 

  

Subtotal

     17,079,000       12,116,000       7,834,000  
   

 

 

    

 

 

    

 

 

  

Deferred — Federal

     750,000       1,136,000       8,104,000  

Deferred — State

     (442,000 )      (512,000 )      947,000  
   

 

 

    

 

 

    

 

 

  

Subtotal

     308,000       624,000       9,051,000  
   

 

 

    

 

 

    

 

 

  
    $ 17,387,000     $ 12,740,000     $ 16,885,000  
   

 

 

    

 

 

    

 

 

  

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the three fiscal years ended March 31, 2010, 2011 and 2012:

 

                         
    2010     2011     2012  

Income taxes at federal statutory rate (35%)

   $ 15,219,000     $ 13,091,000     $ 15,203,000  

State income taxes, net of federal benefit

     1,826,000       1,772,000       1,615,000  

FIN 48 benefit

     —       (1,649,000 )      26,000  

Other

     342,000       (474,000 )      41,000  
   

 

 

    

 

 

    

 

 

  
    $ 17,387,000     $ 12,740,000     $ 16,885,000  
   

 

 

    

 

 

    

 

 

  

Income taxes paid totaled $17,275,000, $13,740,000, and $12,935,000 for the fiscal years ended March 31, 2010, 2011, and 2012, respectively.

 

Deferred tax assets and liabilities at March 31, 2011 and 2012 are:

 

                 
    2011     2012  

Deferred income tax assets:

                

Accrued liabilities not currently deductible

   $ 8,825,000     $ 5,123,000  

Allowance for doubtful accounts

     1,029,000       958,000  

FIN 48 income tax benefits

     653,000       —  

Stock-based compensation

     1,344,000       1,605,000  

Other

     903,000       1,760,000  
   

 

 

    

 

 

  

Deferred assets

     12,754,000       9,446,000  
   

 

 

    

 

 

  

Deferred income tax liabilities:

                

Excess of book over tax basis of fixed assets

     (8,828,000 )      (14,220,000 ) 

Intangible assets

     (3,800,000 )      (4,256,000 ) 

Other

     (576,000 )      (471,000 ) 
   

 

 

    

 

 

  

Deferred liabilities

     (13,204,000 )      (18,947,000 ) 
   

 

 

    

 

 

  

Net deferred tax asset/(liability)

   $ (450,000 )    $ (9,501,000 ) 
   

 

 

    

 

 

  

Prepaid expenses and taxes include $2,847,000 and $7,909,000 at March 31, 2011 and 2012, respectively, for income taxes due in the first quarter of the succeeding fiscal year.

In July 2006, the FASB issued guidance which prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company adopted this guidance effective April 1, 2007, and recognized a $2,700,461 increase in the liability for unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

         

Balance as of March 31, 2011

   $ 1,608,000  

Additions based on tax positions related to the current year

     146,000  

Additions for tax positions of prior years

     117,000  

Reductions for tax positions of prior years

     (888,000 ) 
   

 

 

  

Balance as of March 31, 2012

   $ 983,000  
   

 

 

  

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fiscal years ended March 31, 2010, 2011 and 2012, the Company recognized approximately $96,000, ($1,270,000) and ($396,000) in interest and penalties, respectively. As of March 31, 2010, 2011 and 2012, accrued interest and penalties related to uncertain tax positions were $1,843,000, $572,000 and $176,000, respectively.

The Company believes there will be a material reduction in its unrecognized tax benefits within the next 12 months due to settlements with various tax jurisdictions.

The tax fiscal years 2008-2011 remain open to examination by the major taxing jurisdictions to which the Company is subject.