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Income Taxes
 12 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
17.     Income Taxes
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income from continuing operations before income tax expense. The sources and tax effects of the differences were as follows:
 
 Year Ended March 31,
 202320222021
Statutory federal income tax rate (1)21.00 %21.00 %21.00 %
Expected tax at statutory rate$15,640 $8,109 $2,116 
State income taxes net of federal benefit2,719 759 (450)
Foreign taxes at rates other than statutory federal rate1,757 1,027 287 
Employee benefits1,207 (202)(67)
US Tax on foreign earnings1,257 845 352 
Permanent items(190)(1,161)(107)
Valuation allowance(787)300 84 
Federal tax credits(1,539)(700)(700)
Other285 (114)(545)
Tax audit adjustments (2)2,523 — — 
Unremitted earnings 720 — — 
Return to provision adjustment2,454 (77)— 
Actual tax provision expense$26,046 $8,786 $970 
(1) Fiscal year 2022 and 2021 table amounts have been adjusted to be consistent with individual rate reconciling items disclosed for fiscal 2023.
(2) For fiscal 2023, the Company settled income tax assessments related to tax periods prior to the Company's acquisition of STAHL. In accordance with the tax indemnification clause of the share purchase agreement, the Company received full reimbursement from STAHL’s prior owner which was recorded as a gain in Other (income) expense, net.

The provision for income tax expense (benefit) consisted of the following:
 Year Ended March 31,
 202320222021
Current income tax expense (benefit):   
United States Federal$7,772 $(2,482)$810 
State taxes2,218 571 618 
Foreign16,356 12,666 8,246 
Deferred income tax expense (benefit):
United States(517)1,139 (5,996)
Foreign217 (3,108)(2,708)
 $26,046 $8,786 $970 
The Company applies the liability method of accounting for income taxes as required by ASC Topic 740, “Income Taxes.” The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:
 March 31,
 20232022
Deferred tax assets:  
Federal net operating loss carryforwards$12,908 $17,567 
State and foreign net operating loss carryforwards6,656 10,075 
Employee benefit plans11,609 16,625 
Insurance reserves3,500 3,609 
Accrued vacation and incentive costs4,071 3,682 
Federal tax credit carryforwards12,065 12,427 
ASC 842 Lease Liability16,544 10,872 
Equity compensation4,552 3,927 
Capitalized Research and Development Costs6,976 2,003 
Interest Carryforwards3,271 3,795 
Other1,073 2,596 
Valuation allowance(15,978)(16,147)
Deferred tax assets after valuation allowance67,247 71,031 
Deferred tax liabilities:
Property, plant, and equipment(7,389)(4,917)
ASC 842 Right-of-Use Asset(15,706)(10,130)
Intangible assets(88,116)(95,316)
Total deferred tax liabilities(111,211)(110,363)
Net deferred tax assets (liabilities)$(43,964)$(39,332)

The valuation allowance includes $2,070,000 and $4,322,000 primarily related to foreign net operating losses at March 31, 2023 and 2022, respectively. A valuation allowance of $1,820,000 was established in fiscal 2023 for separate state net operating losses. The remaining valuation allowance primarily relates to foreign tax credits which the Company believes it will not utilize of $12,088,000 and $11,825,000 for the years ended March 31, 2023 and 2022, respectively. The Company’s foreign subsidiaries have net operating loss carryforwards of $2,943,000 that expire in periods ranging from five years to indefinite.

Federal net operating losses from the acquisition of Dorner were fully utilized in fiscal 2023. Federal net operating losses of $61,465,000 remaining from the acquisition of Magnetek, have expiration dates ranging from 2024 through 2035, and are subject to certain limitations under U.S. tax law. The state net operating losses of $81,406,000 have expiration dates ranging from 2024 through 2042.  The federal tax credits have expiration dates ranging from 2028 to 2033.

Deferred income taxes are classified within the consolidated balance sheets based on the following breakdown:

 March 31,
 20232022
Net non-current deferred tax assets$2,035 $2,313 
Net non-current deferred tax liabilities(45,999)(41,645)
Net deferred tax assets (liabilities)$(43,964)$(39,332)

Net non-current deferred tax liabilities are included in other non-current liabilities.

Income before income tax expense includes foreign subsidiary income of $48,399,000, $42,127,000, and $30,894,000 for the years ended March 31, 2023, 2022, and 2021, respectively. Historically, we have asserted that the unremitted earnings of most of our foreign subsidiaries were indefinitely reinvested in the jurisdiction in which they were earned.  However, as of March 31,
2023, the Company has determined that certain foreign amounts, which can be distributed tax efficiently, are no longer permanently reinvested where earned.  As of March 31, 2023 a tax liability of approximately $720,000 has been accrued for taxes that would be incurred upon repatriation of the earnings that are not permanently reinvested. We continue to be permanently reinvested in the unremitted earnings of our other foreign subsidiaries, which total $90,525,000, and outside basis differences other than unremitted earnings.  It is not practicable to calculate the amount of unrecognized deferred tax related to these basis differences.
 
Changes in the Company’s uncertain income tax positions, excluding the related accrual for interest and penalties, are as follows:
 202320222021
Beginning balance$414 $141 $132 
Additions for prior year tax positions— 281 — 
Foreign currency translation(3)(8)9 
Ending balance$411 $414 $141 

The Company had $68,000, $62,000, and $57,000 accrued for the payment of interest and penalties at March 31, 2023, 2022, and 2021 respectively. The Company recognizes interest expense or penalties related to uncertain tax positions as a part of income tax expense in its consolidated statements of operations. $411,000 of the unrecognized tax benefits as of March 31, 2023 would impact the effective tax rate if recognized. The Company anticipates that certain unrecognized tax benefits will change due to the settlement of audits in certain foreign jurisdictions prior to March 31, 2024.

The Company and its subsidiaries file income tax returns in the U.S., various state, local, and foreign jurisdictions. The Company’s major tax jurisdictions are the United States and Germany.  With few exceptions, the Company is no longer subject to tax examinations by tax authorities in the United States for tax years prior to March 31, 2019 and in Germany for tax years prior to March 31, 2012. The Company has a current tax examination in Germany for fiscal years 2012 to 2014.

The Inflation Reduction Act was enacted in fiscal year 2023 and includes the implementation of a new 15% minimum tax on book income of certain large corporations, an excise tax on stock buybacks, and various tax credits and incentives for energy and clean climate initiatives, among other provisions. The Company has evaluated the Act and does not expect its provisions to have a material impact to the Company's consolidated financial statements.