XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 8 - Federal, State and Local Income Taxes | 3 Months Ended
--- | ---
Jul. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 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 July 31, |
($ in thousands) |  | 2017 |  |  | 2016 |
Current tax expense: |  |  |  |  |  |  |  |
Federal |  | $ | 1,319 |  |  | $ | 3,577 |
State and local |  |  | 79 |  |  |  | 325 |
Current tax expense |  |  | 1,398 |  |  |  | 3,902 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |
Federal |  |  | (186 | ) |  |  | (189 | )
State and local |  |  | (30 | ) |  |  | 15 |
Deferred tax expense (benefit): |  |  | (216 | ) |  |  | (174 | )
Income tax provision |  | $ | 1,182 |  |  | $ | 3,728 |
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 long-term deferred tax liability are as follows:
|  | July 31, |  |  | April 30, |
($ in thousands) |  | 2017 |  |  | 2017 |
Federal tax liability (benefit): |  |  |  |  |  |  |  |
Deferred gain on deconsolidation of EAM |  | $ | 17,747 |  |  | $ | 17,742 |
Deferred non-cash post-employment compensation |  |  | (619 | ) |  |  | (619 | )
Depreciation and amortization |  |  | 391 |  |  |  | 454 |
Other |  |  | (114 | ) |  |  | (366 | )
Total federal tax liability |  |  | 17,405 |  |  |  | 17,211 |
State and local tax liabilities (benefits): |  |  |  |  |  |  |  |
Deferred gain on deconsolidation of EAM |  |  | 1,114 |  |  |  | 1,206 |
Deferred non-cash post-employment compensation |  |  | (39 | ) |  |  | (42 | )
Depreciation and amortization |  |  | 25 |  |  |  | 31 |
Other |  |  | 78 |  |  |  | (29 | )
Total state and local tax liabilities |  |  | 1,178 |  |  |  | 1,166 |
Deferred tax liability, long term |  | $ | 18,583 |  |  | $ | 18,377 |
In November 2015, the FASB issued ASU 2015 - 17, Income taxes (Topic 740 ): Balance Sheet Classification of Deferred Taxes which requires that all deferred tax assets and liabilities, along with related valuation allowances, be classified as long-term on the balance sheet. As a result, each tax-paying jurisdiction will now only have one net long-term asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The Company implemented ASU 2015 - 17 in the first quarter of fiscal 2018 retroactively to include the results as of April 30, 2017 for comparative purposes. The adoption of ASU 2015 - 17 does not have a material impact on our consolidated condensed financial statements and related disclosures. At the end of each interim reporting period, the Company estimates the effective income tax rate to apply for the full fiscal 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 overall effective income tax rates, as a percentage of pre-tax ordinary income for the three months ended July 31, 2017 and July 31, 2016 were 34.80% and 36.96%, respectively. The Company's 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, taxation method adopted by each locality, 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 2018 is primarily attributable to the attribution of 100% of the gain on the sale of the Company's operating facility to one tax jurisdiction in fiscal 2017 mostly offset by the effect of the scheduled reduction in the allocation factors on the state and local current and deferred tax liability (primarily associated with the gain on deconsolidation of EAM), the dividend received deduction, and domestic production tax credit. 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:
|  | Three Months Ended July 31, |
|  | 2017 |  |  | 2016 |
U.S. statutory federal tax rate |  |  | 35.00 | % |  |  | 35.00 | %
Increase (decrease) in tax rate from: |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 0.73 | % |  |  | 1.99 | %
Effect of dividends received deductions |  |  | -0.37 | % |  |  | -0.06 | %
Domestic production tax credit |  |  | -0.65 | % |  |  | 0.00 | %
Other, net |  |  | 0.09 | % |  |  | 0.03 | %
Effective income tax rate |  |  | 34.80 | % |  |  | 36.96 | %
The Company believes that, as of July 31, 2017, there were no material uncertain tax positions that would require disclosure to 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. Beginning with the fiscal year ended April 30, 2017, the Company will file combined income tax returns with the Parent on a unitary basis in certain states as a result of changes in state tax regulations. The Company does not anticipate any significant tax implications from the change to unitary state tax filing. The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended 2013 through 2016, are subject to examination by the tax authorities, generally for three years after they are filed with the tax authorities. The Company favorably concluded certain tax audits during the third quarter of fiscal 2016 that provided the recognition of tax benefits resulting from a favorable outcome. The Company is presently engaged in a federal tax audit for the fiscal year ended April 30, 2015 and does not expect it to have a material effect on the financial statements.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration