XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.23.1

Note 4 - Income Taxes | 12 Months Ended
--- | ---
Mar. 25, 2023
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 4 – INCOME TAXES Transcat’s income before income taxes on the Consolidated Statements of Income is as follows (amounts in thousands):
|  | FY 2023 |  |  | FY 2022 |  |  | FY 2021 |
United States |  | $ | 9,879 |  |  | $ | 10,417 |  |  | $ | 9,187 |
Foreign |  |  | 3,608 |  |  |  | 2,773 |  |  |  | 795 |
Total |  | $ | 13,487 |  |  | $ | 13,190 |  |  | $ | 9,982 |
The provision for income taxes for fiscal years 2023, 2022 and 2021 is as follows:
|  | FY 2023 |  |  | FY 2022 |  |  | FY 2021 |
Current Tax Provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 1,938 |  |  | $ | 414 |  |  | $ | 1,449 |
State |  |  | 652 |  |  |  | 240 |  |  |  | 428 |
Foreign |  |  | 395 |  |  |  | 752 |  |  |  | 103 |
|  | $ | 2,985 |  |  | $ | 1,406 |  |  | $ | 1,980 |
Deferred Tax (Benefit) Provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (334 | ) |  | $ | 456 |  |  | $ | 96 |
State |  |  | (258 | ) |  |  | (10 | ) |  |  | (22 | )
Foreign |  |  | 406 |  |  |  | (42 | ) |  |  | 137 |
|  | $ | (186 | ) |  | $ | 404 |  |  | $ | 211 |
Provision for Income Taxes |  | $ | 2,799 |  |  | $ | 1,810 |  |  | $ | 2,191 |
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 (amounts in thousands):
|  | FY 2023 |  |  | FY 2022 |  |  | FY 2021 |
Federal Income Tax at Statutory Rate |  | $ | 2,832 |  |  | $ | 2,770 |  |  | $ | 2,096 |
State Income Taxes, net of federal benefit |  |  | 311 |  |  |  | 172 |  |  |  | 282 |
Foreign Taxes and Federal, State and Foreign Tax Credits |  |  | (56 | ) |  |  | (127 | ) |  |  | 9 |
Tax Impact of Equity Awards |  |  | (416 | ) |  |  | (1,395 | ) |  |  | (274 | )
Non-Deductible Acquisition Costs |  |  | 6 |  |  |  | 206 |  |  |  | - |
GILTI and 78 Gross Up |  |  | 83 |  |  |  | 161 |  |  |  | - |
Other, net |  |  | 39 |  |  |  | 23 |  |  |  | 78 |
Total |  | $ | 2,799 |  |  | $ | 1,810 |  |  | $ | 2,191 |
|  | March 25, |  |  | March 26, |
|  | 2023 |  |  | 2022 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Accrued Liabilities |  | $ | 362 |  |  | $ | 384 |
Lease Liabilities |  |  | 1,916 |  |  |  | 2,622 |
Performance-Based Stock Award Grants |  |  | 720 |  |  |  | 443 |
Inventory Reserves |  |  | 70 |  |  |  | 100 |
Non-Qualified Deferred Compensation Plan |  |  | 62 |  |  |  | 92 |
Post-Retirement Health Care Plans |  |  | 323 |  |  |  | 333 |
Stock-Based Compensation |  |  | 570 |  |  |  | 225 |
Capitalized Inventory Costs |  |  | 214 |  |  |  | 158 |
Other |  |  | 314 |  |  |  | 233 |
Total Deferred Tax Assets |  | $ | 4,551 |  |  | $ | 4,590 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Goodwill and Intangible Assets |  | $ | (3,504 | ) |  | $ | (3,812 | )
Right of Use Assets |  |  | (1,957 | ) |  |  | (2,623 | )
Depreciation |  |  | (5,462 | ) |  |  | (4,767 | )
Other |  |  | (166 | ) |  |  | (112 | )
Total Deferred Tax Liabilities |  | $ | (11,089 | ) |  | $ | (11,314 | )
Net Deferred Tax Liabilities |  | $ | (6,538 | ) |  | $ | (6,724 | )
The Company files income tax returns in the U.S. federal jurisdiction, various states, Canada and Ireland. The Company is no longer subject to examination by U.S. federal income tax authorities for fiscal years 2019 and prior, by state tax authorities for fiscal years 2017 and prior, by Canadian tax authorities for fiscal years 2017 and prior, and by Ireland tax authorities for calendar years 2018 and prior. There are no income tax years currently under examination by the Internal Revenue Service, Canadian and Irish tax authorities. One U.S. state has selected Transcat for analysis, the results of this analysis will determine if further action is required. The Company's foreign subsidiary undistributed earnings are considered to be permanently reinvested. During fiscal years 2023, 2022 and 2021, there were no uncertain tax positions. No interest or penalties related to uncertain tax positions were recognized in fiscal years 2023, 2022 and 2021 or were accrued at March 25, 2023 and March 26, 2022. The Company’s effective tax rate for fiscal years 2023, 2022 and 2021 was 20.8%, 13.7% and 21.9%, 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 2023, 2022 and 2021 were $0.4 million, $1.4 million and $0.3 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 2024. As such, it expects its effective tax rate in fiscal year 2024 to be between 21.0% and 23.0%.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration