XML 140 R15.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Federal, State and Local Income Taxes | 12 Months Ended
--- | ---
Apr. 30, 2013
Income Tax Disclosure [Abstract] |
Federal, State and Local Income Taxes | Note 7-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:
|  | Fiscal Years Ended April 30, |
($ in thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Current tax expense (benefit): |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,679 |  |  | $ | 139 |  |  | $ | 356 |
State and local |  |  | 130 |  |  |  | (54 | ) |  |  | (413 | )
|  |  | 2,809 |  |  |  | 85 |  |  |  | (57 | )
Deferred tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 728 |  |  |  | 3,785 |  |  |  | 20,535 |
State and local |  |  | 350 |  |  |  | 503 |  |  |  | 3,203 |
|  |  | 1,078 |  |  |  | 4,288 |  |  |  | 23,738 |
Income tax provision: |  | $ | 3,887 |  |  | $ | 4,373 |  |  | $ | 23,681 |
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:
|  | As of April 30,
($ in thousands) |  | 2013 |  |  | 2012 |
Federal tax benefit (liability): |  |  |  |  |  |
Net operating loss |  | $ | - |  |  | $ | 126 |
Unrealized gains on securities available-for-sale |  |  | (136 | ) |  |  | (46 | )
Operating lease exit obligation |  |  | 13 |  |  |  | 153 |
Deferred professional fees |  |  | 49 |  |  |  | 80 |
Deferred charges |  |  | 265 |  |  |  | 76 |
Total federal tax benefit |  |  | 191 |  |  |  | 389 |
State and local tax benefits: |  |  |  |  |  |  |  |
Net operating loss |  |  | - |  |  |  | 15 |
Other |  |  | 36 |  |  |  | 38 |
Total state and local tax benefits |  |  | 36 |  |  |  | 53 |
Deferred tax asset, short term |  | $ | 227 |  |  | $ | 442 |
|  | As of April 30, |
($ in thousands) |  | 2013 |  |  | 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 |  |  | 1,642 |  |  |  | 1,032 |
Other |  |  | 262 |  |  |  | 120 |
Total federal tax liability |  |  | 18,964 |  |  |  | 18,212 |
State and local tax liabilities (benefits): |  |  |  |  |  |  |  |
Deferred gain on deconsolidation of EAM |  |  | 2,243 |  |  |  | 2,182 |
Deferred non-cash post-employment compensation |  |  | (79 | ) |  |  | (76 | )
Depreciation and amortization |  |  | 208 |  |  |  | 127 |
Deferred professional fees |  |  | (10 | ) |  |  | (21 | )
Total state and local tax liabilities |  |  | 2,362 |  |  |  | 2,212 |
Deferred tax liability, long term |  | $ | 21,326 |  |  | $ | 20,424 |
The Company’s net operating loss carryforward from fiscal 2012 of approximately $360,000 was fully utilized during the twelve months ended April 30, 2013. The Company’s net operating loss carryforward of approximately $7.3 million was mostly utilized during the twelve months ended April 30, 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 and the tax benefits related to the Company’s exit lease obligation of $914,000 all recognized in fiscal 2011. 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 overall effective income tax rates, as a percentage of pre-tax ordinary income for the twelve months ended April 30, 2013, 2012 and 2011 were 37.0%, 38.71% and 38.53%, respectively. The annual effective tax rate will change 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 and settlements with tax authorities. The fluctuation in the effective income tax rate during fiscal 2013 is attributable to a higher percentage of income subject to state and local taxes offset by the recognition of the domestic production tax credits and an increase in the dividends received deduction during the current fiscal year. The change in the effective income tax rate in fiscal 2012 is attributable to the alternative minimum tax on the limitation to the Company’s net operating loss carryforward in fiscal years 2012 and 2011, and a slight decrease in state and local tax rate for fiscal 2012 primarily from EAM’s geographical income allocation. 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:
|  | Fiscal Years Ended April 30, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
U.S. statutory federal rate |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
Increase (decrease) in tax rate from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 2.96 | % |  |  | 2.58 | % |  |  | 2.95 | %
Effect of dividends received deductions |  |  | -0.27 | % |  |  | - |  |  |  | - |
Alternative minimum tax - net operating loss limitation |  |  | - |  |  |  | 1.23 | % |  |  | 0.58 | %
Domestic production tax credit |  |  | -0.52 | % |  |  | - |  |  |  | - |
Other, net |  |  | -0.17 | % |  |  | -0.10 | % |  |  | - |
Effective income tax rate |  |  | 37.00 | % |  |  | 38.71 | % |  |  | 38.53 | %
The Company believes that, as of April 30, 2013, 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 are 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 (“IRS”) has 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. The Company’s tax returns for the fiscal years ended April 30, 2010 and 2011 are being examined by the City of New York. The Company does not expect the audit examination to have a material effect on its 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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 6: 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