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Income Taxes | 12 Months Ended
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Mar. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Note 9 – Income Taxes: An analysis of the components of (loss) income before (benefit) provision for income taxes is presented below:
|  | Year ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
United States |  | $ | (12,861 | ) |  | $ | 7,346 |  |  | $ | 8,301 |
China |  |  | 7 |  |  |  | (297 | ) |  |  | 429 |
|  | $ | (12,854 | ) |  | $ | 7,049 |  |  | $ | 8,730 |
The (benefit) provision for income taxes related to (loss) income before (benefit) provision for income taxes consists of:
|  | Year ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6 |  |  | $ | 2,834 |  |  | $ | 3,795 |
State |  |  | 72 |  |  |  | 118 |  |  |  | 54 |
Foreign |  |  | 0 |  |  |  | (42 | ) |  |  | 272 |
|  |  | 78 |  |  |  | 2,910 |  |  |  | 4,121 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (3,276 | ) |  |  | (861 | ) |  |  | (1,319 | )
State |  |  | 61 |  |  |  | 30 |  |  |  | (82 | )
Foreign |  |  | 12 |  |  |  | (27 | ) |  |  | (154 | )
Changes in valuation allowance |  |  | 115 |  |  |  | (26 | ) |  |  | 33 |
|  |  | (3,088 | ) |  |  | (884 | ) |  |  | (1,522 | )
Total (benefit) provision for income taxes |  | $ | (3,010 | ) |  | $ | 2,026 |  |  | $ | 2,599 |
The reconciliation of the (benefit) provision calculated using the U.S. federal tax rate with the (benefit) provision for income taxes presented in the consolidated financial statements is as follows:
|  | Year ended March 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
(Benefit) provision for income taxes at federal rate |  | $ | (3,958 | ) |  | $ | 2,467 |  |  | $ | 3,055 |
State taxes |  |  | 118 |  |  |  | 129 |  |  |  | (28 | )
Charges not deductible for income tax purposes |  |  | 48 |  |  |  | 39 |  |  |  | 64 |
Recognition of tax benefit generated by qualified production activities deduction |  |  | 4 |  |  |  | (209 | ) |  |  | (245 | )
Research and development tax credits |  |  | (102 | ) |  |  | (196 | ) |  |  | (232 | )
Valuation allowance |  |  | (80 | ) |  |  | (26 | ) |  |  | 33 |
Difference in federal rate |  |  | (2,799 | ) |  |  | (194 | ) |  |  | — |
Impairment of goodwill and intangible assets |  |  | 1,760 |  |  |  | — |  |  |  | — |
Stranded tax effects in accumulated other comprehensive loss |  |  | 1,828 |  |  |  | — |  |  |  | — |
Mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits |  |  | 185 |  |  |  | — |  |  |  | — |
Other |  |  | (14 | ) |  |  | 16 |  |  |  | (48 | )
(Benefit) provision for income taxes |  | $ | (3,010 | ) |  | $ | 2,026 |  |  | $ | 2,599 |
The impact on the valuation allowance of the difference in the federal rate as a result of the Tax Act discussed below is reflected in the line item “Difference in federal rate” in the reconciliation above. 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, |
|  | 2018 |  |  | 2017 |
Depreciation |  | $ | (1,582 | ) |  | $ | (2,201 | )
Accrued compensation |  |  | 201 |  |  |  | 242 |
Prepaid pension asset |  |  | (969 | ) |  |  | (845 | )
Accrued pension liability |  |  | 129 |  |  |  | 175 |
Accrued postretirement benefits |  |  | 160 |  |  |  | 299 |
Compensated absences |  |  | 366 |  |  |  | 601 |
Inventories |  |  | 51 |  |  |  | 1,045 |
Warranty liability |  |  | 108 |  |  |  | 191 |
Accrued expenses |  |  | 429 |  |  |  | 937 |
Stock-based compensation |  |  | 332 |  |  |  | 548 |
Intangible assets |  |  | (1,100 | ) |  |  | (5,097 | )
New York State investment tax credit |  |  | 1,074 |  |  |  | 959 |
Research and development tax credit |  |  | 145 |  |  |  | — |
Net operating loss carryforwards |  |  | 271 |  |  |  | — |
Other |  |  | 47 |  |  |  | 79 |
|  |  | (338 | ) |  |  | (3,067 | )
Less: Valuation allowance |  |  | (1,074 | ) |  |  | (959 | )
Total |  | $ | (1,412 | ) |  | $ | (4,026 | )
The foreign deferred income tax asset of $15 and $25 at March 31, 2018 and 2017, respectively, is included in the caption "Other Assets" in the Consolidated Balance Sheet. Deferred income taxes include the impact of state investment tax credits of $279, which expire from 2019 to 2032 and state investment tax credits of $795, which have an unlimited carryforward period. 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 determined that a portion of the deferred tax assets as of March 31, 2018 and 2017 related to certain state investment tax credits would not be realized, and recorded a valuation allowance of $1,074 and $959, respectively. 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. The Company is subject to U.S. federal examination for tax years 2015 through 2017 and examination in state tax jurisdictions for tax years 2013 through 2017. The Company is subject to examination in the People's Republic of China for tax years 2014 through 2017. The liability for unrecognized tax benefits was $0 at each of March 31, 2018 and 2017. On December 22, 2017, the Tax Act was signed into law. The Tax Act significantly revised the U.S. tax code by, among other changes, lowering the corporate income tax rate from 35% to 21%, requiring a one-time transition tax on accumulated foreign earnings of certain foreign subsidiaries that were previously tax deferred and creating new taxes on certain foreign sourced earnings. The Company remeasured certain U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%, and recorded an income tax benefit of $971 related to such re-measurement in fiscal 2018. The Company is still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The one-time transition tax is based on the total post-1986 earnings and profits (“E&P”) of our foreign subsidiary that has previously been deferred from U.S. income taxes. The Company recorded its one-time transition liability of its foreign subsidiary resulting in additional income tax expense of $185 in fiscal 2018. The Company has not yet completed its calculation of the total post-1986 foreign E&P for the foreign subsidiary. The transition tax is based in part on the amount of those earnings held in cash and other specified assets. The amount may change upon completion of the fiscal 2018 tax return when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. The Tax Act also includes two new U.S. tax base-erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT) provisions, beginning in 2018. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company has not yet determined if it will be subject to incremental U.S. tax on GILTI income beginning in 2018. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended March 31, 2018. The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if greater than regular tax. The Company does not expect it will be subject to this tax, and therefore has not included any tax impacts of BEAT in its consolidated financial statements for the year ended March 31, 2018. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included this amount in its consolidated financial statements for the year ended March 31, 2018. As of March 31, 2018, the Company has completed the majority of its accounting for the tax effects of the Tax Act. Its preliminary estimate of the deemed repatriated earnings and the re-measurement of its deferred tax assets and liabilities is subject to the finalization of management’s analysis related to certain matters that may require further adjustments and changes in estimates, such as developing interpretations of the provisions of the Tax Act, changes to certain estimates and amounts related to the E&P of its foreign subsidiary, the filing of its tax returns, U.S. Treasury regulations expected to be issued, and administrative interpretations or court decisions interpreting the Tax Act.

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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 Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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