XML 56 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Federal, State and Local Income Taxes | 6 Months Ended
--- | ---
Oct. 31, 2012
Income Tax Disclosure [Abstract] |
Federal, State and Local Income Taxes: |
Note 8 - Federal, State and Local Income Taxes: |  |  |
In accordance with the requirements of the Income Tax Topic of the FASB's ASC, the Company's provision for income taxes includes the following:
|  | Three Months Ended October 31, |  |  | Six Months Ended October 31, |
($ in thousands) |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Current tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 879 |  |  | $ | (93 | ) |  | $ | 1,327 |  |  | $ | (43 | )
State and local |  |  | 29 |  |  |  | (123 | ) |  |  | 102 |  |  |  | (215 | )
|  |  | 908 |  |  |  | (216 | ) |  |  | 1,429 |  |  |  | (258 | )
Deferred tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (31 | ) |  |  | 1,330 |  |  |  | 436 |  |  |  | 2,336 |
State and local |  |  | 30 |  |  |  | (148 | ) |  |  | 117 |  |  |  | 33 |
|  |  | (1 | ) |  |  | 1,182 |  |  |  | 553 |  |  |  | 2,369 |
Income tax provision: |  | $ | 907 |  |  | $ | 966 |  |  | $ | 1,982 |  |  | $ | 2,111 |
Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. The tax effect of temporary differences giving rise to the Company's deferred tax asset and deferred tax liability are as follows:
|  | October 31, |  |  | April 30, |
($ in thousands) |  | 2012 |  |  | 2012 |
Federal tax benefit (liability): |  |  |  |  |  |
Net operating loss |  | $ | - |  |  | $ | 126 |
Unrealized gains on securities available-for-sale |  |  | (61 | ) |  |  | (46 | )
Operating lease exit obligation |  |  | 90 |  |  |  | 153 |
Deferred professional fees |  |  | - |  |  |  | 80 |
Deferred charges |  |  | 223 |  |  |  | 76 |
Total federal tax benefit |  |  | 252 |  |  |  | 389 |
State and local tax benefits: |  |  |  |  |  |  |  |
Net operating loss |  |  | - |  |  |  | 15 |
Other |  |  | 33 |  |  |  | 38 |
Total state and local tax benefits |  |  | 33 |  |  |  | 53 |
Deferred tax asset, short term |  | $ | 285 |  |  | $ | 442 |
|  | October 31, |  |  | April 30, |
($ in thousands) |  | 2012 |  |  | 2012 |
Federal tax liability (benefit): |  |  |  |  |  |  |  |
Deferred gain on deconsolidation of EAM |  | $ | 17,679 |  |  | $ | 17,679 |
Deferred non-cash post-employment compensation |  |  | (619 | ) |  |  | (619 | )
Depreciation and amortization |  |  | 1,312 |  |  |  | 1,032 |
Other |  |  | 216 |  |  |  | 120 |
Total federal tax liability |  |  | 18,588 |  |  |  | 18,212 |
State and local tax liabilities (benefits): |  |  |  |  |  |  |  |
Deferred gain on deconsolidation of EAM |  |  | 2,188 |  |  |  | 2,182 |
Deferred non-cash post-employment compensation |  |  | (76 | ) |  |  | (76 | )
Depreciation and amortization |  |  | 162 |  |  |  | 127 |
Deferred professional fees |  |  | (16 | ) |  |  | (21 | )
Total state and local tax liabilities |  |  | 2,258 |  |  |  | 2,212 |
Deferred tax liability, long term |  | $ | 20,846 |  |  | $ | 20,424 |
The Company's net operating loss carryforward from fiscal 2012 of approximately $360,000 was fully utilized during the six months ended October 31, 2012. The tax effect of temporary differences giving rise to the Company's long term deferred tax liability is primarily a result of the federal, state, and local taxes related to the $50,510,000 gain from deconsolidation of the Company's asset management and mutual fund distribution subsidiaries, partially offset by the long term tax benefit related to the non-cash post-employment compensation of $1,770,000 granted to VLI's former employee.
At the end of each interim reporting period, the Company estimates the effective income tax rate to apply for the full year. The Company uses the effective income tax rate determined to provide for income taxes on a year-to-date basis and reflects the tax effect of any tax law changes and certain other discrete events in the period in which they occur.
The annual effective tax rate may change during fiscal 2013 due to a number of factors including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix between tax jurisdictions, new tax laws, new interpretations of existing tax laws and rulings by and settlements with tax authorities.
The overall effective income tax rates, as a percentage of pre-tax income, for the six months ended October 31, 2012 and 2011, were 37.18% and 34.60%, respectively. The fluctuation in the effective income tax rate during the six months ended October 31, 2012, is attributable to the recognition of an alternative minimum tax benefits during the prior fiscal year and a higher percentage of income subject to state and local taxes during the current fiscal year.
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pretax income as a result of the following:
|  | Six Months Ended October 31,
|  | 2012 |  |  | 2011 |
U.S. statutory federal rate |  |  | 35.00 | % |  |  | 35.00 | %
Increase (decrease) in tax rate from: |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 2.68 | % |  |  | 2.28 | %
Effect of dividends received deductions |  |  | -0.25 | % |  |  | -0.10 | %
Domestic production tax credit |  |  | -0.59 | % |  |  | -0.98 | %
Alternative minimum tax (benefit) - net operating loss limitation |  |  | 0.00 | % |  |  | -1.60 | %
Other, net |  |  | 0.34 |  |  |  | 0.00 | %
Effective income tax rate |  |  | 37.18 | % |  |  | 34.60 | %
The Company believes that, as of October 31, 2012, there were no material uncertain tax positions that would require disclosure under GAAP.
The Company is included in the consolidated federal income tax return of the Parent. The Company has a tax sharing agreement which requires it to make tax payments to the Parent equal to the Company's liability/(benefit) as if it filed a separate return.
The Company's federal income tax returns (included in the Parent's consolidated returns) and state and city tax returns for fiscal years 2009, 2010, and 2011 were subject to examination by the tax authorities, generally for three years after they were filed with the tax authorities. In February 2012, the Internal Revenue Service concluded its examination of the Company's federal income tax returns through the fiscal year 2010, which resulted in no changes that had any adverse effect on the Company's financial statements.

X
- 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 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration