XML 33 R17.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Income Tax Disclosure | 12 Months Ended
--- | ---
Mar. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Disclosure Text Block |
6. Income Taxes |  |  |  |  |  |  |
The Company files a consolidated federal and various state income tax returns. The provision for income taxes is as follows: |
|  | 2016 |  | 2015 |  | 2014 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |
Federal | $ | 24,579 | $ | 4,380 | $ | 7,238 |
State |  | 1,953 |  | 453 |  | 123 |
|  | 26,532 |  | 4,833 |  | 7,361 |
Deferred: |  |  |  |  |  |  |
Federal |  | (689) |  | (925) |  | (3,231) |
State |  | 156 |  | 313 |  | (567) |
|  | (533) |  | (612) |  | (3,798) |
Total income taxes | $ | 25,999 | $ | 4,221 | $ | 3,563 |
A reconciliation of the expected U.S. statutory rate to the effective rate follows: |
|  | 2016 |  | 2015 |  | 2014 |
Computed (expected tax rate) |  | 35.0 | % | 35.0 | % | 35.0 | %
State income taxes (net of federal tax benefit) |  | 2.7 |  | 2.9 |  | 3.4 |
State tax credits |  | (0.9) |  | (8.7) |  | (1.6) |
Federal credits |  | (0.4) |  | (2.4) |  | (3.6) |
Manufacturer’s deduction |  | (3.9) |  | (5.0) |  | (4.6) |
(Reversal of) addition to uncertain tax positions |  | 0.2 |  | (1.0) |  | (0.8) |
State VDA/Nexus Changes |  | - |  | - |  | (1.7) |
Other permanent differences not deductible |  | (0.2) |  | 0.7 |  | 0.5 |
Change in valuation allowance |  | 0.1 |  | 9.9 |  | (2.1) |
Tax effect of pension contribution |  | - |  | - |  | 0.4 |
Other |  | (0.3) |  | (1.5) |  | (4.4) |
Effective income tax rate |  | 32.3 | % | 29.9 | % | 20.5 | %
The effective tax rate was 32.3% in 2016 and 29.9% in 2015. Of the 2.4 percentage point increase in the effective tax rate for the year, the major contributor to this increase is with the federal credits for Research and Development, Work Opportunity Tax Credit and fuel. These credits are largely fixed and with the significant increase in pre-tax earnings for 2016, these credits are a smaller percentage of pre-tax earnings in comparison to 2015. This accounts for 2.0 percent of the increase. The followin g is a summary of the significant components of the Company's deferred income tax assets and liabilities as of March 31:
|  | 2016 |  | 2015
|  | (In thousands)
Deferred income tax assets: |  |  |  |
Future tax credits | $ | 3,807 | $ | 4,021
Inventory valuation |  | - |  | 2,348
Employee benefits |  | 3,174 |  | 3,009
Insurance |  | 881 |  | 816
Other comprehensive loss |  | 18,154 |  | 20,335
Interest |  | 21 |  | 46
Prepaid revenue |  | 571 |  | 701
Other |  | 2,804 |  | 1,364
Pension |  | - |  | 1,372
Severance |  | 3 |  | 256
|  | 29,415 |  | 34,268
Deferred income tax liabilities: |  |  |  |
Property basis and depreciation difference |  | 9,330 |  | 9,129
481(a) adjustment |  | 880 |  | 1,281
Inventory valuation |  | 1,247 |  | -
Intangibles |  | 235 |  | -
Earnings from equity investment |  | 69 |  | 245
Pension |  | 2,896 |  | -
|  | 14,657 |  | 10,655
Valuation allowance - non-current |  | 1,861 |  | 1,787
Net deferred income tax asset | $ | 12,897 | $ | 21,826
Net current deferred income tax assets of none and $7.0 million as of March 31, 201 6 and 2015, respectively, are recognized in the Consolidated Balance Sheets. Also recognized are net non-current deferred income tax assets of $12.9 million as of March 31, 2016 and net non-current deferred income tax liabilities of $14.8 million as of March 31, 2015. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes which requires that all deferred tax lia bilities and assets of the same tax jurisdiction or a tax filing group, as well as any related valuation allowance, be offset and be presented as a single noncurrent amount in a classified balance sheet. This standard is effective for the Company for fisc al years beginning after December 15, 2017 (beginning of fiscal 2019). Early adoption is permitted. The Company adopted this standard during 2016 on a prospective basis. Prior periods were not retrospectively adjusted. The Company has State tax credit c arryforwards amounting to $1.2 million (California, net of Federal impact), $0.8 million (New York, net of Federal impact), and $1.7 million (Wisconsin, net of Federal impact), which are available to reduce future taxes payable in each respective state thr ough 20 31 (Wisconsin), through 2031 (New York), and through 2026 (California). The Company has performed the required assessment regarding the realization of deferred tax assets and at March 31, 2016, the Company has recorded a valuation allowance amountin g to $1.9 million, which relates primarily to tax credit carryforwards which management has concluded it is more likely than not they will not be realized in the ordinary course of operations. Although realization is not assured, management has concluded t hat 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. Current rules on the accounting for uncertai nty 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 derecognitio n, 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 for the years ended March 31, 2016 and 2015 c onsists of the following:
|  | 2016 |  | 2015
|  | (In thousands)
Beginning balance | $ | 464 | $ | 2,273
Tax positions related to current year: |  |  |  |
Additions |  | 291 |  | 13
Tax positions related to prior years: |  |  |  |
Additions |  | 241 |  | -
Reductions |  | (7) |  | (1,822)
Settlements |  | (166) |  | -
Lapses in statues of limitations |  | (129) |  | -
Balance as of March 31, | $ | 694 | $ | 464
Neither balances at March 31, 2016 and 2015 include 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 unrec ognized tax benefits as well as interest received from favorable settlements within income tax expense. Durin g the years ended March 31, 2016 and 2015, the Company recog nized approximately $0.1 million decrease and $0.1 million decrease, respectively, in i nterest and penalties. As of March 31, 2016 and 2015, the Company had approximately $0.1 million and $0.1 million, respectively, of interest and penalties accrued associated with unrecognized tax benefits. Although management believes that an adequate pro vision 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, t hus having a positive impact on earnings. It is anticipated that audit settlements will be reached during 201 7 with federal and state taxing authorities that could have an impact on earnings. Due to the uncertainty of amounts and in accordance with its acc ounting policies, the Company has not recorded any potential impact of these settlements. The federal income tax returns for years after March 31, 2013 are subject to examination.

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/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=6907707&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=6907707&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=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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration