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Note 14 - Income Taxes
 12 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
14
. Income Taxes
 
Earnings before income taxes are as follows:
 
   
Year Ended March 31,
  
   
2020
    
2019
    
2018
  
Domestic
   $
15,630
     $
12,133
     $
12,708
  
Foreign
    
(12,197
 )    
(3,510
 )    
(12,407
 )
Total earnings before income taxes
   $
3,433
     $
8,623
     $
301
  
 
The components of our provision for income taxes are as follows:
 
   
Year Ended March 31,
  
   
2020
    
2019
    
2018
  
Current tax provision
                        
U.S. Federal
   $
2,348
     $
1,831
     $
3,732
  
U.S. State
    
814
      
449
      
715
  
Foreign
    
993
      
1,166
      
1,299
  
Total current tax expense
    
4,155
      
3,446
      
5,746
  
Deferred tax provision:
                        
U.S. Federal
    
60
      
(741
 )    
(1,589
 )
U.S. State
    
599
      
(106
 )    
(216
 )
Foreign
    
(2,730
 )    
(1,460
 )    
(678
 )
Total deferred tax expense
    
(2,071
 )    
(2,307
 )    
(2,483
 )
Total income tax expense
   $
2,084
     $
1,139
     $
3,263
  
 
The components of net deferred tax assets and liabilities are as follows:
 
   
March 31, 2020
    
March 31, 2019
  
Deferred tax assets:
                
Accrued employee-related expenses
   $
208
     $
163
  
Allowances and reserves
    
105
      
100
  
Stock compensation deductible differences
    
1,265
      
1,061
  
Inventories
    
504
      
1,534
  
Net operating loss
    
8,874
      
47
  
Foreign tax credit
    
--
      
16
  
Credits    
47
      
--
  
Other
    
458
      
807
  
Total deferred tax assets
    
11,461
      
3,728
  
Deferred tax liabilities:
                
Property, plant and equipment
    
(1,286
 )    
(1,118
 )
Goodwill and intangible assets
    
(24,825
 )    
(2,249
 )
Debt    
(5,982
 )    
--
  
Currency translation adjustment    
(64
 )    
(33
 )
Other
    
(1
 )    
(6
 )
Total deferred tax liabilities
    
(32,158
 )    
(3,406
 )
Valuation allowance
    
(391
)
    
(76
 )
Net deferred tax asset (liability)
   $
(21,088
 )   $
246
  
 
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,
  
   
2020
    
2019
    
2018
  
Federal income taxes at statutory rates
   $
721
     $
1,811
     $
93
  
State income taxes, net of federal benefit
    
1,147
      
208
      
328
  
Tax benefit of stock option exercises
    
(1,576
 )    
(2,034
 )    
(1,087
 )
Section 199 manufacturing deduction
    
--
      
--
      
(381
 )
Research and development credit
    
(191
 )    
(158
 )    
(162
 )
Tax Cuts and Jobs Act
    
--
      
--
      
(59
 )
Impairment of non-deductible goodwill
    
--
      
284
      
4,257
  
Limitation for 162(m)
    
1,112
      
766
      
--
  
Foreign rate differential    
657
      
 
      
 
  
Other
    
214
      
262
      
274
  
Total income tax expense
   $
2,084
     $
1,139
     $
3,263
  
 
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
2016,
state tax returns after
2015
 and foreign tax returns after
2015
 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.
 
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
$19,
$40
 and
$24
 as of
March 31, 2020
, 
2019
and
2018
, respectively.
 
A reconciliation of the changes in the gross balance of unrecognized tax benefit amounts is as follows:
 
   
Year Ended March 31,
  
   
2020
    
2019
    
2018
  
Beginning balance
   $
1,361
     $
827
     $
331
  
Decreases related to prior period tax positions    
(1,027
 )    
--
      
--
  
Increases related to current period tax positions
    
319
      
534
      
496
  
Ending balance
   $
653
     $
1,361
     $
827
  
 
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 operations or consolidated balance sheets. At this time, we expect resolution of the uncertain tax position within
12
months.
 
As of
March 31, 2020
, undistributed earnings of our foreign subsidiaries amounted to
$12,900.
Those earnings are considered 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. Furthermore, as a result of the Tax Cuts and Job Act, a significant portion of the distribution
may 
not
be subject to current U.S. income taxes, resulting in
no
foreign tax credits. 
 
As of
March 31, 2020
, we had
$8,874
 of net operating losses for foreign tax purposes. The foreign net operating losses do
not
expire. In addition, we had
$15
 of foreign tax credit carryovers which will expire in the tax year
2028.