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Note 10 - Income Taxes | 12 Months Ended
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Mar. 31, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Note 10. Income Taxes Under current accounting standards, we must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We measure the tax benefits recognized in our consolidated financial statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax law and regulations change over time and may result in changes to our subjective assumptions and judgments which can materially affect amounts recognized in our consolidated balance sheets and statements of income. Our assessment of tax positions as of March 31, 2014 and 2013, determined that there were no material uncertain tax positions. Our federal tax returns for all years after 2010 and our state tax returns after 2009 are subject to future examination by tax authorities for all our tax jurisdictions. We recognize interest and penalties related to income tax matters in other expense and general and administration expense, respectively. During the year ended March 31, 2013, we amended several state income tax returns, resulting in tax refunds of $258,000. These tax refunds are included as an offset to income tax expense in the accompanying consolidated statement of income for the year ended March 31, 2013. The components of our provision for income taxes are as follows (in thousands):
|  | Year Ended March 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current tax provision |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,031 |  |  | $ | 4,440 |  |  | $ | 4,233 |
State |  |  | 106 |  |  |  | 280 |  |  |  | 437 |
|  |  | 4,137 |  |  |  | 4,720 |  |  |  | 4,670 |
Deferred tax provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (19 | ) |  |  | (180 | ) |  |  | (237 | )
State |  |  | (15 | ) |  |  | (12 | ) |  |  | (21 | )
|  |  | (34 | ) |  |  | (192 | ) |  |  | (258 | )
|  | $ | 4,103 |  |  | $ | 4,528 |  |  | $ | 4,412 |
The components of net deferred tax assets and liabilities are as follows (in thousands):
|  | March 31, |
|  | 2014 |  |  | 2013 |
Current deferred tax assets: |  |  |  |  |  |  |  |
Accrued employee-related expenses |  | $ | 298 |  |  | $ | 125 |
Allowances and reserves |  |  | 701 |  |  |  | 226 |
Stock option deductible differences |  |  | 301 |  |  |  | 243 |
Inventory |  |  | 281 |  |  |  | 252 |
Net operating loss |  |  | 297 |  |  |  | -- |
|  |  | 1,878 |  |  |  | 846 |
Long-term deferred tax liability: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (1,434 | ) |  |  | (1,320 | )
Goodwill and intangible assets |  |  | (3,453 | ) |  |  | (1,044 | )
Net operating loss |  |  | 26 |  |  |  | -- |
|  |  | (4,861 | ) |  |  | (2,364 | )
Net deferred tax liability |  | $ | (2,983 | ) |  | $ | (1,518 | )
A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:
|  | Year Ended March 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Federal income taxes at statutory rates |  | $ | 4,586 |  |  | $ | 4,543 |  |  | $ | 4,193 |
State income taxes, net of federal benefit |  |  | 78 |  |  |  | 158 |  |  |  | 285 |
Tax benefit of stock option exercises |  |  | 5 |  |  |  | 197 |  |  |  | 61 |
Section 199 manufacturing deduction |  |  | (250 | ) |  |  | (357 | ) |  |  | (347 | )
Research and development credit |  |  | (159 | ) |  |  | (41 | ) |  |  | -- |
Other |  |  | (157 | ) |  |  | 28 |  |  |  | 220 |
|  | $ | 4,103 |  |  | $ | 4,528 |  |  | $ | 4,412 |

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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://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
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