XML 27 R12.htm IDEA: XBRL DOCUMENT
v3.21.1

INCOME TAXES | 12 Months Ended
--- | ---
Mar. 27, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 4 – INCOME TAXES While the Tax Cuts and Jobs Act of 2017 provides for a territorial tax system, effective for tax years beginning after December 31, 2017, it includes the Global Intangible Low-Taxed Income (“GILTI”) and Foreign Derived Intangible Income (“FDII”) provisions. The Company has elected to account for these provisions in the period in which incurred. During fiscal years 2021 and 2020, the Company recorded net income tax benefits of less than $0.1 million each year as a result of these provisions. Foreign subsidiary’s undistributed earnings are considered to be permanently reinvested. Transcat’s income before income taxes on the Consolidated Statements of Income is as follows:
|  | FY 2021 |  |  | FY 2020 |
United States |  | $ | 9,187 |  |  | $ | 8,783 |
Foreign |  |  | 795 |  |  |  | 947 |
Total |  | $ | 9,982 |  |  | $ | 9,730 |
49 Table of Contents The provision for income taxes for fiscal years 2021 and 2020 is as follows:
|  | FY 2021 |  |  | FY 2020 |
Current Tax Provision: |  |  |  |  |  |  |  |
Federal |  | $ | 1,449 |  |  | $ | 630 |
State |  |  | 428 |  |  |  | 285 |
Foreign |  |  | 103 |  |  |  | 329 |
|  | $ | 1,980 |  |  | $ | 1,244 |
Deferred Tax (Benefit) Provision: |  |  |  |  |  |  |  |
Federal |  | $ | 96 |  |  | $ | 371 |
State |  |  | (22 | ) |  |  | 77 |
Foreign |  |  | 137 |  |  |  | (29 | )
|  | $ | 211 |  |  | $ | 419 |
Provision for Income Taxes |  | $ | 2,191 |  |  | $ | 1,663 |
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 2021 |  |  | FY 2020 |
Federal Income Tax at Statutory Rate |  | $ | 2,096 |  |  | $ | 2,044 |
State Income Taxes, net of federal benefit |  |  | 282 |  |  |  | 294 |
Foreign Taxes and Federal, State and Foreign Tax Credits |  |  | 9 |  |  |  | (97 | )
Tax Impact of Equity Awards |  |  | (274 | ) |  |  | (876 | )
Other, net |  |  | 78 |  |  |  | 298 |
Total |  | $ | 2,191 |  |  | $ | 1,663 |
|  | March 27, |  |  | March 28, |
|  | 2021 |  |  | 2020 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Accrued Liabilities |  | $ | 354 |  |  | $ | 531 |
Lease Liabilities |  |  | 2,439 |  |  |  | 2,253 |
Performance-Based Stock Award Grants |  |  | 439 |  |  |  | 432 |
Inventory Reserves |  |  | 132 |  |  |  | 105 |
Non-Qualified Deferred Compensation Plan |  |  | 104 |  |  |  | 98 |
Post-Retirement Health Care Plans |  |  | 506 |  |  |  | 385 |
Stock-Based Compensation |  |  | 95 |  |  |  | 70 |
Deferred Payroll Tax – CARES Act |  |  | 259 |  |  |  | - |
Capitalized Inventory Costs |  |  | 118 |  |  |  | 126 |
Other |  |  | 267 |  |  |  | 265 |
Total Deferred Tax Assets |  | $ | 4,713 |  |  | $ | 4,265 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Goodwill and Intangible Assets |  | $ | (1,233 | ) |  | $ | (1,162 | )
Right of Use Assets |  |  | (2,408 | ) |  |  | (2,198 | )
Depreciation |  |  | (4,230 | ) |  |  | (3,858 | )
Other |  |  | (43 | ) |  |  | (72 | )
Total Deferred Tax Liabilities |  | $ | (7,914 | ) |  | $ | (7,290 | )
Net Deferred Tax Liabilities |  | $ | (3,201 | ) |  | $ | (3,025 | )
50 Table of Contents 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 2017 and prior, by state tax authorities for fiscal years 2015 and prior, and by Canadian tax authorities for fiscal years 2014 and prior. There are no income tax years currently under examination by Canadian or state income tax authorities. The fiscal year ended March 31, 2018 is currently under examination by the Internal Revenue Service. A reserve of less than $0.1 million was recorded during the fiscal year ended March 27, 2021 relating to this examination. During fiscal years 2021 and 2020, there were no uncertain tax positions. No interest or penalties related to uncertain tax positions were recognized in fiscal years 2021 and 2020 or were accrued at March 27, 2021 and March 28, 2020. The Company’s effective tax rate for fiscal years 2021 and 2020 was 21.9% and 17.1%, respectively. The tax rate is affected by recurring items, such as state income taxes and tax credits, which the Company expects 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 discrete benefits related to share-based compensation awards in each of fiscal years 2021 and 2020 were $0.3 and $0.9 million, respectively. The Company expects to receive certain federal, state and Canadian tax credits in future years. The Company also expects to receive discrete tax benefits related to share-based compensation awards in fiscal year 2022. As such, it expects its effective tax rate in fiscal year 2022 to be between 20.0% and 22.0%.

X
- References No definition available. + 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration