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Income Taxes | 12 Months Ended
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Mar. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 11 – Income Taxes: An analysis of the components of (loss) income before provision (benefit) for income taxes is presented below:
|  | Year ended March 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
United States |  | $ | (256 | ) |  | $ | (12,861 | ) |  | $ | 7,346 |
China |  |  | 111 |  |  |  | 7 |  |  |  | (297 | )
|  | $ | (145 | ) |  | $ | (12,854 | ) |  | $ | 7,049 |
The provision (benefit) for income taxes consists of:
|  | Year ended March 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 181 |  |  | $ | 6 |  |  | $ | 2,834 |
State |  |  | 141 |  |  |  | 72 |  |  |  | 118 |
Foreign |  |  | — |  |  |  | — |  |  |  | (42 | )
|  |  | 322 |  |  |  | 78 |  |  |  | 2,910 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (3,993 | ) |  |  | (3,276 | ) |  |  | (861 | )
State |  |  | (84 | ) |  |  | 61 |  |  |  | 30 |
Foreign |  |  | 41 |  |  |  | 12 |  |  |  | (27 | )
Changes in valuation allowance |  |  | 3,877 |  |  |  | 115 |  |  |  | (26 | )
|  |  | (159 | ) |  |  | (3,088 | ) |  |  | (884 | )
Total provision (benefit) for income taxes |  | $ | 163 |  |  | $ | (3,010 | ) |  | $ | 2,026 |
The reconciliation of the (benefit) provision calculated using the U.S. federal tax rate with the provision (benefit) for income taxes presented in the consolidated financial statements is as follows:
|  | Year ended March 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
(Benefit) provision for income taxes at federal rate |  | $ | (30 | ) |  | $ | (3,958 | ) |  | $ | 2,467 |
State taxes |  |  | 45 |  |  |  | 118 |  |  |  | 129 |
Charges not deductible for income tax purposes |  |  | 89 |  |  |  | 48 |  |  |  | 39 |
Recognition of tax benefit generated by qualified production activities deduction |  |  | — |  |  |  | 4 |  |  |  | (209 | )
Research and development tax credits |  |  | (177 | ) |  |  | (102 | ) |  |  | (196 | )
Valuation allowance |  |  | 3,877 |  |  |  | (80 | ) |  |  | (26 | )
Basis difference in subsidiary held for sale |  |  | (3,848 | ) |  |  | — |  |  |  | — |
Difference in federal rate |  |  | 3 |  |  |  | (2,799 | ) |  |  | (194 | )
Impairment of goodwill and intangible assets |  |  | 257 |  |  |  | 1,760 |  |  |  | — |
Foreign-derived intangible income deduction |  |  | (69 | ) |  |  | — |  |  |  | — |
Global intangible low-taxed income |  |  | 11 |  |  |  | — |  |  |  | — |
Stranded tax effects in accumulated other comprehensive loss |  |  | — |  |  |  | 1,828 |  |  |  | — |
Mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits |  |  | — |  |  |  | 185 |  |  |  | — |
Other |  |  | 5 |  |  |  | (14 | ) |  |  | 16 |
Provision (benefit) for income taxes |  | $ | 163 |  |  | $ | (3,010 | ) |  | $ | 2,026 |
In fiscal 2018 the impact on the valuation allowance of the difference in the federal rate as a result of the Tax Cuts and Jobs Act which became law in December 2017 (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, |
|  | 2019 |  |  | 2018 |
Depreciation |  | $ | (1,714 | ) |  | $ | (1,582 | )
Accrued compensation |  |  | 230 |  |  |  | 201 |
Prepaid pension asset |  |  | (935 | ) |  |  | (969 | )
Accrued pension liability |  |  | 145 |  |  |  | 129 |
Accrued postretirement benefits |  |  | 150 |  |  |  | 160 |
Compensated absences |  |  | 355 |  |  |  | 366 |
Inventories |  |  | 14 |  |  |  | 51 |
Warranty liability |  |  | 80 |  |  |  | 108 |
Accrued expenses |  |  | 267 |  |  |  | 429 |
Stock-based compensation |  |  | 359 |  |  |  | 332 |
Intangible assets |  |  | — |  |  |  | (1,100 | )
New York State investment tax credit |  |  | 1,069 |  |  |  | 1,074 |
Research and development tax credit |  |  | — |  |  |  | 145 |
Net operating loss carryforwards |  |  | 50 |  |  |  | 271 |
Capital loss related to subsidiary held for sale |  |  | 3,848 |  |  |  |  |
Other |  |  | (20 | ) |  |  | 47 |
|  |  | 3,898 |  |  |  | (338 | )
Less: Valuation allowance |  |  | (4,917 | ) |  |  | (1,074 | )
Total |  | $ | (1,019 | ) |  | $ | (1,412 | )
The foreign deferred income tax asset of $37 and $15 at March 31, 2019 and 2018, 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 $275, which expire from 2020 to 2033 and state investment tax credits of $794, which have an unlimited carryforward period. Foreign net operating losses at March 31, 2019 were $200 and expire between 2021 through 2023. Net operating losses attributable to Energy Steel, the subsidiary held for sale, for city income taxes were $4,279 at March 31, 2019 and have an indefinite life. 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, 2019 and 2018 related to certain state investment tax credits and the capital loss related to the subsidiary held for sale would not be realized, and recorded a valuation allowance of $4,917 and $1,074, respectively. The deferred tax asset of $126 included in the caption "Assets held for sale" in the Consolidated Balance Sheet includes a valuation allowance of $34 related to net operating loss carryforwards for city income taxes. 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 2018 and examination in state tax jurisdictions for tax years 2014 through 2018. The Company is subject to examination in the People's Republic of China for tax years 2015 through 2018. The liability for unrecognized tax benefits was $0 at each of March 31, 2019 and 2018. 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 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 transition tax is based in part on the amount of those earnings held in cash and 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 elected to account for GILTI tax in the period in which it is incurred and has recorded $11 of tax related to GILTI in fiscal 2019. 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 was not subject to this tax, and therefore has not included any tax impacts of BEAT in its consolidated financial statements. The Tax Act also provides tax incentives to U.S. companies to earn income from the sale, lease or license of goods and services abroad in the form of a deduction for foreign-derived intangible income ("FDII"). FDII is taxed at an effective rate of 13.125% for taxable years beginning after December 31, 2017. The incremental U.S. tax savings on FDII in fiscal 2019 was $69. 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 recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included the amount in its consolidated financial statements in fiscal 2018 and during fiscal 2019 there were no significant changes made to the provisional amounts recorded in fiscal 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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