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Income Taxes | 12 Months Ended
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Mar. 31, 2013
Income Taxes [Abstract] |
Income Taxes | Note 10 — Income Taxes: An analysis of the components of income before income taxes is presented below:
|  | Year ended March 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
United States |  | $ | 14,597 |  |  | $ | 16,708 |  |  | $ | 8,954 |
China |  |  | 980 |  |  |  | (31 | ) |  |  | (194 | )
|  | $ | 15,577 |  |  | $ | 16,677 |  |  | $ | 8,760 |
The provision for income taxes related to income before income taxes consists of:
|  | Year ended March 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,721 |  |  | $ | 1,744 |  |  | $ | 3,677 |
State |  |  | 65 |  |  |  | (19 | ) |  |  | 119 |
Foreign |  |  | — |  |  |  | (14 | ) |  |  | 13 |
|  |  | 6,786 |  |  |  | 1,711 |  |  |  | 3,809 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,538 | ) |  |  | 4,521 |  |  |  | (805 | )
State |  |  | (223 | ) |  |  | (140 | ) |  |  | (137 | )
Foreign |  |  | 260 |  |  |  | 18 |  |  |  | (48 | )
Changes in valuation allowance |  |  | 144 |  |  |  | 14 |  |  |  | 67 |
|  |  | (2,357 | ) |  |  | 4,413 |  |  |  | (923 | )
Total provision for income taxes |  | $ | 4,429 |  |  | $ | 6,124 |  |  | $ | 2,886 |
The reconciliation of the provision calculated using the U.S. federal tax rate with the provision for income taxes presented in the financial statements is as follows:
|  | Year ended March 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Provision for income taxes at federal rate |  | $ | 5,452 |  |  | $ | 5,670 |  |  | $ | 2,979 |
State taxes |  |  | (173 | ) |  |  | (100 | ) |  |  | (69 | )
Charges not deductible for income tax purposes |  |  | 78 |  |  |  | 281 |  |  |  | 140 |
Recognition of tax benefit generated by qualified production activities deduction |  |  | (417 | ) |  |  | (77 | ) |  |  | (222 | )
Research and development tax credits |  |  | (307 | ) |  |  | (134 | ) |  |  | (160 | )
Valuation allowance |  |  | 144 |  |  |  | 14 |  |  |  | 67 |
Uncertain tax positions |  |  | 90 |  |  |  | 428 |  |  |  | 32 |
Contingent earn-out |  |  | (326 | ) |  |  | — |  |  |  | — |
Other |  |  | (112 | ) |  |  | 42 |  |  |  | 119 |
Provision for income taxes |  | $ | 4,429 |  |  | $ | 6,124 |  |  | $ | 2,886 |
The net deferred income tax liability recorded in the Consolidated Balance Sheets results from differences between financial statement and tax reporting of income and deductions. A summary of the composition of the Company’s net deferred income tax liability follows:
|  | March 31, |
|  | 2013 |  |  | 2012 |
Depreciation |  | $ | (2,212 | ) |  | $ | (2,232 | )
Accrued compensation |  |  | 200 |  |  |  | 134 |
Prepaid pension asset |  |  | (831 | ) |  |  | (792 | )
Accrued pension liability |  |  | 90 |  |  |  | 90 |
Accrued postretirement benefits |  |  | 364 |  |  |  | 353 |
Compensated absences |  |  | 584 |  |  |  | 516 |
Inventories |  |  | (968 | ) |  |  | (3,073 | )
Warranty liability |  |  | 144 |  |  |  | 76 |
Accrued expenses |  |  | 219 |  |  |  | 486 |
Stock-based compensation |  |  | 459 |  |  |  | 351 |
Intangible assets |  |  | (5,353 | ) |  |  | (5,418 | )
Net operating loss carryforwards |  |  | 151 |  |  |  | 48 |
New York State investment tax credit |  |  | 564 |  |  |  | 372 |
Other |  |  | (132 | ) |  |  | (80 | )
|  |  | (6,721 | ) |  |  | (9,169 | )
Less: Valuation allowance |  |  | (564 | ) |  |  | (420 | )
Total |  | $ | (7,285 | ) |  | $ | (9,589 | )
The net deferred income tax liability is presented in the Consolidated Balance Sheets as follows:
|  | March 31, |
|  | 2013 |  |  | 2012 |
Current deferred income tax asset |  | $ | 69 |  |  | $ | 37 |
Long-term deferred income tax asset |  |  | 150 |  |  |  | 22 |
Current deferred income tax liability |  |  | (373 | ) |  |  | (2,244 | )
Long-term deferred income tax liability |  |  | (7,131 | ) |  |  | (7,404 | )
|  | $ | (7,285 | ) |  | $ | (9,589 | )
Deferred income taxes include the impact of state investment tax credits of $202, which expire from 2014 to 2027 and state investment tax credits of $362 with an unlimited carryforward period. Deferred income taxes include the impact of foreign net operating losses carryforwards of $603, which expire from 2014 to 2017. In assessing the realizability of deferred tax assets, management considers, within each taxing jurisdiction, whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the consideration of the weight of both positive and negative evidence, management has determined that a portion of the deferred tax assets as of March 31, 2013 related to certain state investment tax credits will not be realized, and has recorded a valuation allowance of $564. At March 31, 2012, a valuation allowance of $420 was recorded, which related to $372 of certain state investment tax credits and $48 of foreign net operating losses carryforwards. The Company files federal and state income tax returns in several domestic and international jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. During fiscal 2012, the Company reached a resolution with the U.S. Internal Revenue Service (the “IRS”) with regard to the research and development tax credits claimed during tax years 2006 through 2008. As a result of such resolution, the tax credits claimed during such years were reduced by approximately 40% and interest was assessed on the underpayment of tax. During fiscal 2013, the Company reached a resolution with the IRS that reduced the research and development tax credits claimed during tax years 2009 and 2010 by approximately 30%. In addition, in fiscal 2013, the Company paid all settlement amounts to the IRS for tax years 2006 through 2010. The liability for unrecognized tax benefits related to research and development tax credits was $134 and $905 on March 31, 2013 and 2012, respectively. The Company had one additional unrecognized tax benefit of $882 as of March 31, 2012, which was resolved with the IRS during fiscal 2013, resulting in a reversal of the liability. The Company is subject to examination in federal and state tax jurisdictions for tax years 2011 through 2012 and tax years 2008 through 2012, respectively. The Company is subject to examination in its international jurisdiction for tax years 2010 through 2012. It is the Company’s policy to recognize any interest related to uncertain tax positions in interest expense and any penalties related to uncertain tax positions in selling, general and administrative expense. During fiscal 2013, the Company reversed provisions that had been made in previous years for interest related to its uncertain tax positions due to lower assessments by the IRS than expected. Including this reversal, the Company recorded ($320), $259 and $87 in fiscal 2013, fiscal 2012 and fiscal 2011, respectively, for interest related to its uncertain tax positions. No penalties related to uncertain tax positions were recorded in fiscal 2013, fiscal 2012 or fiscal 2011. The following table summarizes the changes to the unrecognized tax benefit:
|  | Year Ended March 31, |
|  | 2013 |  |  | 2012 |
Balance at beginning of year |  | $ | 1,787 |  |  | $ | 1,365 |
Deductions based upon tax positions taken during prior periods |  |  | (893 | ) |  |  | (501 | )
Additions based upon tax positions taken during the current period |  |  | 40 |  |  |  | 923 |
Settlements |  |  | (800 | ) |  |  | — |
Balance at end of year |  | $ | 134 |  |  | $ | 1,787 |

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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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