v2.4.1.9

TAXES | 12 Months Ended
--- | ---
Mar. 31, 2015
Income Tax Disclosure [Abstract] |
TAXES | TAXES The components of deferred tax assets and liabilities are as follows (in thousands):
| March 31,
| 2015 |  | 2014
Deferred tax assets: |  |  |
Foreign tax credits | $ | 31,134 |  |  | $ | 17,628 |
Net operating losses | 17,487 |  |  | 15,627 |
Accrued pension liability | 21,657 |  |  | 18,531 |
Maintenance and repair | — |  |  | 12,674 |
Accrued equity compensation | 12,728 |  |  | 11,627 |
Deferred revenue | 2,156 |  |  | 2,124 |
Employee award programs | 7,515 |  |  | 6,289 |
Employee payroll accruals | 5,118 |  |  | 4,845 |
Inventories | 5,259 |  |  | 5,784 |
Investment in unconsolidated affiliates | 6,539 |  |  | — |
Other | 4,790 |  |  | 3,188 |
Valuation allowance | (11,700 | ) |  | (6,896 | )
Total deferred tax assets | $ | 102,683 |  |  | $ | 91,421 |
Deferred tax liabilities: |  |  |
Property and equipment | $ | (207,395 | ) |  | $ | (205,104 | )
Inventories | (196 | ) |  | (12,740 | )
Investment in unconsolidated affiliates | — |  |  | (8,985 | )
Employee programs | (1,564 | ) |  | (1,895 | )
Other | (8,378 | ) |  | (9,195 | )
Total deferred tax liabilities | $ | (217,533 | ) |  | $ | (237,919 | )
Net deferred tax liabilities | $ | (114,850 | ) |  | $ | (146,498 | )
Companies may use foreign tax credits to offset the U.S. income taxes due on income earned from foreign sources. However, the credit that may be claimed for a particular taxable year is limited by the total income tax on the U.S. income tax return as well as by the ratio of foreign source net income in each statutory category to total net income. The amount of creditable foreign taxes available for the taxable year that exceeds the limitation (i.e., “excess foreign tax credits”) may be carried back one year and forward ten years. We have $31.1 million of excess foreign tax credits as of March 31, 2015, of which $6.6 million will expire in fiscal year 2021, $3.9 million will expire in fiscal year 2022, $0.2 million will expire in fiscal year 2023, $6.9 million will expire in fiscal year 2024 and $13.5 million will expire in 2025. We record 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 ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. As of March 31, 2015, valuation allowances totaled $11.7 million for operating loss carryforwards. The increase in the valuation allowance of $4.8 million in fiscal year 2015 resulted from foreign losses. The components of income before provision for income taxes for fiscal years 2015, 2014 and 2013 are as follows (in thousands):
| Fiscal Year Ended March 31,
| 2015 |  | 2014 |  | 2013
Domestic | $ | (40,602 | ) |  | $ | (14,357 | ) |  | $ | 2,472 |
Foreign | 152,075 |  |  | 259,348 |  |  | 164,205 |
Total | $ | 111,473 |  |  | $ | 244,991 |  |  | $ | 166,677 |
The provision for income taxes for fiscal years 2015, 2014 and 2013 consisted of the following (in thousands):
| Fiscal Year Ended March 31,
| 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Domestic | $ | 4 |  |  | $ | 36,872 |  |  | $ | 1,638 |
Foreign | 34,822 |  |  | 33,939 |  |  | 26,275 |
| $ | 34,826 |  |  | $ | 70,811 |  |  | $ | 27,913 |
Deferred: |  |  |  |  |
Domestic | $ | (11,358 | ) |  | $ | (6,646 | ) |  | $ | 1,619 |
Foreign | (702 | ) |  | (6,953 | ) |  | 5,470 |
| $ | (12,060 | ) |  | $ | (13,599 | ) |  | $ | 7,089 |
Total | $ | 22,766 |  |  | $ | 57,212 |  |  | $ | 35,002 |
The reconciliation of the U.S. Federal statutory tax rate to the effective income tax rate for the provision for income taxes is shown below:
| Fiscal Year Ended March 31,
| 2015 |  | 2014 |  | 2013
Statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Net foreign tax on non-U.S. earnings | 26.3 | % |  | 11.8 | % |  | 14.4 | %
Foreign earnings indefinitely reinvested abroad | (47.0 | )% |  | (18.9 | )% |  | (28.4 | )%
Change in valuation allowance | 4.0 | % |  | 1.8 | % |  | — | %
Foreign earnings that are currently taxed in the U.S. | 8.7 | % |  | 4.1 | % |  | 4.6 | %
Effect of reduction in U.K. corporate income tax rate | — | % |  | (1.2 | )% |  | (1.7 | )%
Dividend inclusion as a result of internal realignment | — | % |  | 1.1 | % |  | — | %
Benefit of current year foreign tax credits | (11.3 | )% |  | (5.2 | )% |  | (5.5 | )%
Tax reserve release | (0.1 | )% |  | (0.7 | )% |  | — | %
Other, net | 4.8 | % |  | (4.4 | )% |  | 2.6 | %
Effective tax rate | 20.4 | % |  | 23.4 | % |  | 21.0 | %
Fiscal years 2014 and 2013 include a benefit due to the revaluation of our deferred taxes as a result of the enactment of tax rate reductions in the U.K. of $2.9 million and $2.9 million, respectively, effective April 1 of each year. In August 2008, certain of our existing and newly created subsidiaries completed intercompany leasing transactions involving eleven aircraft. The tax benefit of this transaction is being recognized over the remaining useful life of the assets, which is approximately 13 years. During each of the fiscal years 2015, 2014 and 2013, this transaction resulted in a $2.9 million reduction in our consolidated provision for income taxes. Our operations are subject to the jurisdiction of multiple tax authorities, which impose various types of taxes on us, including income, value added, sales and payroll taxes. Determination of taxes owed in any jurisdiction requires the interpretation of related tax laws, regulations, judicial decisions and administrative interpretations of the local tax authority. As a result, we are subject to tax assessments in such jurisdictions including the re-determination of taxable amounts by tax authorities that may not agree with our interpretations and positions taken. The following table summarizes the years open by jurisdiction as of March 31, 2015:
Jurisdiction | Years Open
U.S. | Fiscal year 2012 to present
U.K. | Fiscal year 2012 to present
Nigeria | Fiscal year 2005 to present
Trinidad | Fiscal year 2005 to present
Australia | Fiscal year 2011 to present
The effects of a tax position are recognized in the period in which we determine that it is more-likely-than-not (defined as a more than 50% likelihood) that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount of tax benefit that is greater than 50% likely of being recognized upon ultimate settlement. We have analyzed filing positions in the federal, state and foreign jurisdictions where we are required to file income tax returns for all open tax years. We believe that the settlement of any tax contingencies would not have a significant impact on our consolidated financial position, results of operations and/or liquidity. In fiscal years 2015, 2014 and 2013, we had a net (benefit) provision of $0.5 million, $(1.5) million and $0.1 million, respectively, of reserves for tax contingencies primarily related to non-U.S. income tax on foreign leasing operations. Our policy is to accrue interest and penalties associated with uncertain tax positions in our provision for income taxes. In fiscal years 2015, 2014 and 2013, $0.4 million, $0.1 million and $0.1 million, respectively, in interest and penalties were accrued in connection with uncertain tax positions. As of March 31, 2015 and 2014, we had $4.9 million and $4.4 million, respectively, of unrecognized tax benefits, all of which would have an impact on our effective tax rate, if recognized. The $4.2 million recorded in fiscal year 2014 relates to pre-acquisition tax matters for the February 2014 acquisition of a 60% interest in Eastern Airways and are the subject of an indemnity, for which a corresponding indemnity asset has been established for the same amount. The activity associated with our unrecognized tax benefit during fiscal years 2015 and 2014 is as follows (in thousands):
| Fiscal Year Ended March 31,
| 2015 |  | 2014
Unrecognized tax benefits – beginning of fiscal year | $ | 4,380 |  |  | $ | 1,710 |
Eastern pre-acquisition tax liability | — |  |  | 4,193 |
Increases for tax positions taken in prior years | 591 |  |  | 129 |
Decreases for tax positions taken in prior years | — |  |  | (1,434 | )
Decrease related to settlements with authorities | (67 | ) |  | (218 | )
Unrecognized tax benefits – end of fiscal year | $ | 4,904 |  |  | $ | 4,380 |
Unremitted foreign earnings reinvested abroad upon which U.S. income taxes have not been provided aggregated approximately $805.3 million and $679.3 million as of March 31, 2015 and 2014, respectively. No accrual of income tax has been made for fiscal years 2015 and 2014 related to these indefinitely reinvested earnings as there was no plan in place to repatriate any of these foreign earnings to the U.S. as of the end of the fiscal year. Withholding taxes, if any, upon repatriation would not be significant. We do not currently provide for U.S. deferred taxes on unremitted earnings of our foreign subsidiaries as such earnings are deemed to be permanently reinvested. If such earnings were to be distributed, we could be subject to U.S. taxes, which may have a material impact on our results of operations. We cannot practicably estimate the amount of additional taxes that might be payable on unremitted earnings We receive a tax benefit that is generated by certain employee stock benefit plan transactions. This benefit is recorded directly to additional paid-in-capital on our consolidated balance sheets and does not reduce our effective income tax rate. The tax benefit for fiscal years 2015, 2014 and 2013 totaled approximately $1.6 million, $5.7 million and $0.5 million, respectively. Income taxes paid during fiscal years 2015, 2014 and 2013 were $34.8 million, $59.1 million and $24.1 million, respectively.

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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 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
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