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Income Tax Disclosure | 12 Months Ended
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Mar. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure Text Block |
7. Income Taxes |  |  |  |  |  |  |
The Company files a consolidated federal income tax return. The provision for income taxes is as follows: |
|  | 2013 |  | 2012 |  | 2011 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |
Federal | $ | 21,356 | $ | 4,193 | $ | 2,854 |
State |  | 3,629 |  | 704 |  | 1,225 |
|  | 24,985 |  | 4,897 |  | 4,079 |
Deferred: |  |  |  |  |  |  |
Federal |  | (2,770) |  | 1,430 |  | 1,791 |
State |  | (180) |  | (62) |  | (74) |
|  | (2,950) |  | 1,368 |  | 1,717 |
Total income taxes | $ | 22,035 | $ | 6,265 | $ | 5,796 |
A reconciliation of the expected U.S. statutory rate to the effective rate follows: |
|  | 2013 |  | 2012 |  | 2011 |
Computed (expected tax rate) |  | 35.0 | % | 35.0 | % | 35.0 | %
State income taxes (net of federal tax benefit) |  | 3.8 |  | 4.5 |  | 3.9 |
State tax credits |  | (0.8) |  | (2.8) |  | (2.1) |
Research and development credit |  | (0.2) |  | (0.6) |  | (0.6) |
Manufacturer’s deduction |  | (3.4) |  | (5.1) |  | (3.7) |
Addition to (reversal of) uncertain tax positions |  | 0.2 |  | 0.4 |  | (7.3) |
IRS audit adjustment |  | 0.0 |  | 0.0 |  | 1.5 |
Other permanent differences not (taxable) deductible |  | 0.1 |  | 0.7 |  | (0.1) |
Tax effect of pension contribution |  | 0.0 |  | 2.2 |  | 0.0 |
Other |  | 0.0 |  | 1.5 |  | (1.9) |
Effective income tax rate |  | 34.7 | % | 35.8 | % | 24.7 | %
The lower 2011 effective tax rate wa s primarily due to a reversal of uncertain tax positions in 20 11 mostly due to the sett lement of an Internal Revenue Service ("IRS") audit that year discussed below. The following is a summary of the significant components of the Company's deferred income tax assets and liabilities as of March 31:
|  | 2013 |  | 2012
|  | (In thousands)
Deferred income tax assets: |  |  |  |
Future tax credits | $ | 2,808 | $ | 3,251
Inventory valuation |  | 2,893 |  | 1,408
Employee benefits |  | 2,742 |  | 2,816
Insurance |  | 3,422 |  | 3,812
Other comprehensive loss |  | 14,416 |  | 14,867
Interest |  | 118 |  | 80
Deferred gain on sale/leaseback |  | 54 |  | 82
Prepaid revenue |  | 1,619 |  | 2,348
Other |  | 232 |  | 520
Severance |  | 237 |  | 196
|  | 28,541 |  | 29,380
Deferred income tax liabilities: |  |  |  |
Property basis and depreciation difference |  | 13,274 |  | 14,151
Pension |  | 3,012 |  | 5,283
|  | 16,286 |  | 19,434
Valuation allowance - non-current |  | 758 |  | 906
Net deferred income tax asset | $ | 11,497 | $ | 9,040
Net current d efe rred income tax assets of $9,400,000 and $8,637,000 as of March 31, 2013 and 2012, respectively, are recognized in the Consolidated Balance Sheets. Also recognized are net non-current deferred income tax assets of $2,097,000 as of Mar ch 31, 2013 and net non-current deferred income tax liabilities of $403,000 as of March 31, 2012. Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expected to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company classifies the liability for uncertain tax positions in other accrued expenses or other long-term liabilities depending on their expected settlement. The change in the liability fo r the years ended March 31, 2013 and 2012 consists of the following:
|  | 2013 |  | 2012
|  | (In thousands)
Beginning balance | $ | 2,350 | $ | 2,174
Tax positions related to current year: |  |  |  |
Additions |  | 176 |  | 207
Tax positions related to prior years: |  |  |  |
Additions |  | 70 |  | 133
Reductions |  | (45) |  | (27)
Settlements |  | (81) |  | (137)
Balance as of March 31, | $ | 2,470 | $ | 2,350
Included i n the bal ances at March 31, 2013 and 2012 are $1,851,000 and $1,778,000, respectively, of tax positions that are highly certain but for which there is uncertainty about the timing. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of these positions would not impact the annual effective tax rate but would accelerate the payment of cash to the tax authority to an earlier period. The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense. Durin g the years ended March 31, 2013 and 2012, the Company recog nized an approximate $58,000 de crease and $18,000 de crease, respectively, in interest and penaltie s. As of March 31, 2013 and 2012, the Company had approximately $184,000 and $126,000, respectively, of interest and penalties accrued associated with unrecognized tax benefits. The Company files income tax returns in the U.S. federal jurisdiction and various states. During the year s ended March 31, 20 11 and 2010, the Company was audited by the IRS for tax years 200 6, 2007 and 200 8 as well as by one state taxing authority for the 200 6, 200 7 and 200 8 fiscal years. The Company reached a settlement with the IRS for the 200 6-2008 fiscal years during the year ended March 31, 20 11. As a result, the Company was able to record the tax benefits of those settlements as reductions to the uncertain tax positions liability amounting to $3,767,000 for the year ended March 31, 20 11. Although management believes that an adequate provision has been made for uncertain tax positions, there is the possibility that the ultimate resolution could have an adverse effect on the earnings of the Comp any. Conversely, if resolved favorably in the future, the related provisions would be reduced, thus having a positive impact on earnings. It is anticipated that audit settlements will be reached during 201 3 with a state taxing authority that could have an impact on earnings. Due to the uncertainty of amounts and in accordance with its accounting policies, the Company has not recorded any potential impact of these settlements. The Company has State tax credit carryforwards amounting to $1,202,000 (California, net of Federal impact) and $848,000 (Wisconsin, net of Federal impact), which are available to reduce future taxes payable in ea ch respective state through 2022 (Wisconsin), and no expiration (California). The Company has performed the required assessment regarding the realization of deferred tax assets and a t March 31, 2013, the Company has recorded a valua tion allowance amounting to $758,000, which relates primarily to tax credit carryforwards which management has concluded it is more likely than not will not be realized in the ordinary course of operations. Although realization is not assured, management has concluded that it is more likely than not that the deferred tax assets for which a valuation allowance was determined to be unnecessary will be realized in the ordinary course of operations. The amount of net deferred tax assets considered realizable, however, could be reduced if actual future income or income taxes rates are lower than estimated or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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=6881521&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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: 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 8: 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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