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Note 10 - Income Taxes | 12 Months Ended
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Mar. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 10. Income Taxes Earnings before income taxes are as follows (in thousands):
|  | Year Ended March 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | 14,427 |  |  | $ | 14,896 |  |  | $ | 13,103 |
Foreign |  |  | 1,128 |  |  |  | 451 |  |  |  | -- |
|  | $ | 15,555 |  |  | $ | 15,347 |  |  | $ | 13,103 |
The components of our provision for income taxes are as follows (in thousands):
|  | Year Ended March 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current tax provision |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,666 |  |  | $ | 4,186 |  |  | $ | 4,031 |
State |  |  | 627 |  |  |  | 1,135 |  |  |  | 106 |
Foreign |  |  | 658 |  |  |  | 212 |  |  |  | -- |
|  |  | 4,951 |  |  |  | 5,533 |  |  |  | 4,137 |
Deferred tax provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (189 | ) |  |  | 252 |  |  |  | (19 | )
State |  |  | (138 | ) |  |  | 51 |  |  |  | (15 | )
Foreign |  |  | (238 | ) |  |  | (72 | ) |  |  | -- |
|  |  | (565 | ) |  |  | 231 |  |  |  | (34 | )
|  | $ | 4,386 |  |  | $ | 5,764 |  |  | $ | 4,103 |
The components of net deferred tax assets and liabilities are as follows (in thousands):
|  | March 31, |
|  | 201 6 |  |  | 201 5 |
Current deferred tax assets: |  |  |  |  |  |  |  |
Accrued employee-related expenses |  | $ | 257 |  |  | $ | 252 |
Allowances and reserves |  |  | 217 |  |  |  | 346 |
Stock option deductible differences |  |  | 606 |  |  |  | 388 |
Inventory |  |  | 533 |  |  |  | 252 |
Foreign tax credit mirror |  |  | -- |  |  |  | 285 |
Currency translation adjustment |  |  | 12 |  |  |  | 144 |
Net operating loss |  |  | 110 |  |  |  | 22 |
Other |  |  | 3 |  |  |  | -- |
|  |  | 1,738 |  |  |  | 1,689 |
Long-term deferred tax liability: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (1,599 | ) |  |  | (1,478 | )
Goodwill and intangible assets |  |  | (4,335 | ) |  |  | (3,644 | )
Other |  |  | (5 | ) |  |  | -- |
|  |  | (5,939 | ) |  |  | (5,122 | )
Net deferred tax liability |  | $ | (4,201 | ) |  | $ | (3,433 | )
A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows (in thousands):
|  | Year Ended March 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Federal income taxes at statutory rates |  | $ | 5,445 |  |  | $ | 5,374 |  |  | $ | 4,586 |
State income taxes, net of federal benefit |  |  | 293 |  |  |  | 860 |  |  |  | 78 |
Tax benefit of stock option exercises |  |  | (751 | ) |  |  | 209 |  |  |  | 5 |
Section 199 manufacturing deduction |  |  | (440 | ) |  |  | (317 | ) |  |  | (250 | )
Research and development credit |  |  | (345 | ) |  |  | (248 | ) |  |  | (159 | )
Other |  |  | 184 |  |  |  | (114 | ) |  |  | (157 | )
|  | $ | 4,386 |  |  | $ | 5,764 |  |  | $ | 4,103 |
We or one of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Our federal tax returns for all years after 2012, state tax returns after 2011, and foreign tax returns after 2012 are subject to future examination by tax authorities for all our tax jurisdictions. Although the outcome of tax audits, if any is always uncertain, we believe that we have adequately accrued for all amounts of tax, including interest and penalties and any adjustments that may result. As of March 31, 2016, the gross amount of unrecognized tax benefits was $221,000. There would have been no impact on our effective tax rate for the year ended March 31, 2016 had these benefits been recognized. We recognize interest and penalties related to unrecognized tax benefits in other expense and general and administrative expense, respectively. Accrued interest and penalties related to unrecognized tax benefits were $3,000, $0 and $0 as of March 31, 2016, 2015 and 2014, respectively. A reconciliation of the changes in the gross balance of unrecognized tax benefit amounts is as follows (in thousands):
|  | Year Ended March 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Beginning balance |  | $ | -- |  |  | $ | -- |  |  | $ | -- |
Increases related to current period tax positions |  |  | 221 |  |  |  | -- |  |  |  | -- |
Ending balance |  | $ | 221 |  |  | $ | -- |  |  | $ | -- |
We expect that the amount of unrecognized tax benefits will change in the next 12 months; however, we do not expect the change to have a significant impact on our consolidated statements of income or consolidated balance sheets. At this time, we expect resolution of the uncertain tax position within 12 months. As of March 31, 2016, undistributed earnings of our Canadian subsidiary amounted to $794,000. Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce a portion of the U.S. tax liability. As of March 31, 2016, we had $0 and $2,309,000 of net operating losses for federal and state income tax purposes, respectively. The state net operating losses will expire between 2020 and 2030.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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