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INCOME TAXES | 12 Months Ended
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Mar. 26, 2016
INCOME TAXES [Abstract] |
INCOME TAXES | NOTE 4 – INCOME TAXES Transcat's net income before income taxes on the Consolidated Statements of Income is as follows:
|  | FY 2016 |  |  | FY 2015 |
United States |  | $ | 5,760 |  |  |  | $ | 6,115 |  |
Foreign |  |  | 247 |  |  |  |  | 308 |  |
Total |  | $ | 6,007 |  |  |  | $ | 6,423 |  |
The provision for income taxes for fiscal years 2016 and 2015 is as follows:
|  | FY 2016 |  |  | FY 2015 |
Current Tax Provision: |  |  |  |  |
Federal |  | $ | 1,367 |  |  |  | $ | 1,200 |  |
State |  |  | 202 |  |  |  |  | 311 |  |
Foreign |  |  | 174 |  |  |  |  | 107 |  |
|  |  | 1,743 |  |  |  |  | 1,618 |  |
Deferred Tax (Benefit) Provision: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 266 |  |  |  | $ | 776 |  |
State |  |  | 85 |  |  |  |  | 64 |  |
Foreign |  |  | (211 | ) |  |  |  | (61 | ) |
|  |  | 140 |  |  |  |  | 779 |  |
Provision for Income Taxes |  | $ | 1,883 |  |  |  | $ | 2,397 |  |
A reconciliation of the income tax provision computed by applying the statutory U.S. federal income tax rate and the income tax provision reflected in the Consolidated Statements of Income is as follows:
|  | FY 2016 |  |  | FY 2015 |
Federal Income Tax at Statutory Rate |  | $ | 2,042 |  |  |  | $ | 2,184 |  |
State Income Taxes, net of federal benefit |  |  | 226 |  |  |  |  | 220 |  |
Federal, State & Foreign Research & Development Credits |  |  | (479 | ) |  |  |  | 0 |  |
Other, net |  |  | 94 |  |  |  |  | (7 | ) |
Total |  | $ | 1,883 |  |  |  | $ | 2,397 |  |
The components of net deferred tax assets (liabilities) are as follows:
|  | March 26, 2016 |  |  | March 28, 2015
Deferred Tax Assets: |  |  |  |  |
Accrued Liabilities |  | $ | 399 |  |  |  | $ | 384 |
Performance-Based Grants |  |  | 335 |  |  |  |  | 395 |
Inventory Reserves |  |  | 163 |  |  |  |  | 143 |
Non-Qualified Deferred Compensation Plan |  |  | 273 |  |  |  |  | 362 |
Post-retirement Health Care Plans |  |  | 387 |  |  |  |  | 385 |
Stock-Based Compensation |  |  | 808 |  |  |  |  | 810 |
Capitalized Inventory Costs |  |  | 117 |  |  |  |  | 112 |
Net Operating Loss Carryforward |  |  | 133 |  |  |  |  | - |
Other |  |  | 313 |  |  |  |  | 151 |
Total Deferred Tax Assets |  | $ | 2,928 |  |  |  | $ | 2,742 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |  |
Goodwill and Intangible Assets |  | $ | (1,865 | ) |  |  | $ | (1,754 | )
Depreciation |  |  | (2,127 | ) |  |  |  | (1,544 | )
Other |  |  | (7 | ) |  |  |  | (80 | )
Total Deferred Tax Liabilities |  |  | (3,999 | ) |  |  |  | (3,378 | )
Net Deferred Tax (Liabilities) Assets |  | $ | (1,071 | ) |  |  | $ | (636 | )
Deferred U.S. income taxes have not been recorded for basis differences related to the investments in the Company's foreign subsidiary. The Company considers undistributed earnings, if any, as permanently reinvested in the subsidiary. The determination of a deferred tax liability on unremitted earnings would not be practicable because such liability, if any, would depend on circumstances existing if and when remittance occurs. The Company files income tax returns in the U.S. federal jurisdiction, various states and Canada. The Company is no longer subject to examination by U.S. federal income tax authorities for fiscal years 2013 and prior, by state tax authorities for fiscal years 2010 and prior, and by Canadian tax authorities for fiscal years 2008 and prior. There are no tax years currently under examination by U.S. federal, state or Canadian tax authorities. During fiscal years 2016 and 2015, there were no uncertain tax positions, and the Company expects no material uncertain tax positions within the next twelve months. The Company recognizes interest and penalties, if any, related to uncertain tax positions in the provision for income taxes. No interest or penalties related to uncertain tax positions were recognized in fiscal years 2016 and 2015 or were accrued at March 26, 2016 and March 28, 2015. At March 26, 2016, the deferred tax asset related to U.S. federal net operating loss carryforwards of approximately $0.1 million and U.S. state net operating loss carryforwards of less than $0.1 million are available to reduce future taxable income. The utilization of these losses is subject to an annual limitation due to ownership change rules set forth under Internal Revenue Code Section 382. The Company's effective tax rate for fiscal years 2016 and 2015 was 31.3% and 37.3%, respectively. Its tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, which we expect to be fairly consistent in the near term. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. The most significant impact on the difference between the Company's statutory U.S. federal income tax rate of 34.0% and effective tax rate was the cumulative impact of research and development credits of $0.5 million, of which $0.3 million relates to prior periods. The Company expects to receive certain federal and state tax credits in future years, but not to the extent that they were received in fiscal year 2016. As such, we expect our effective tax rate to be higher in future years than it was in fiscal year 2016.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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