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Note 7 - Income Taxes
9 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
7
: Income Taxes
 
For the quarters ended
December 31, 2017
and
2016,
the Company recorded an income tax provision of approximately
$2.9
million and
$3.0
million, respectively, and for the
nine
months ended
December 31, 2017
and
2016,
the Company recorded an income tax provision of approximately
$12.2
million and
$9.8
million, respectively. The decrease to the income tax provision for the
three
months ended
December 31, 2017,
is related to an income tax rate reduction pursuant to the Tax Cuts and Jobs Act of
2017
(
“2017
Act”), offset by an increase in operating income. The increase to the income tax provision for the
nine
months ended
December 31, 2017,
is related to an increase in operating income offset by the income tax rate reduction due to the
2017
Act. The effective tax rate for the quarter ended
December 31, 2017
was approximately
24.0%,
compared to
38.3%
for the quarter ended
December 31, 2016,
and the effective tax rate for the
nine
months ended
December 31, 2017
was approximately
31.1%,
compared to
37.5%
for the
nine
months ended
December 31, 2016.
The decrease to the effective rate for the
three
and
nine
months ended
December 31, 2017
is due to a reduction in the Company’s corporate tax rate pursuant to the
2017
Act. In accordance with SEC Staff Bulletin
No.
118,
fiscal year end companies were required to determine the appropriate blended rate to apply based on their respective fiscal year end date. Therefore, instead of applying a
35.0%
federal tax rate for the quarter and
nine
months ended
December 31, 2017,
the Company applied a blended federal rate of
31.5%.
This blended rate was applied to the
nine
months ended
December 31, 2017,
resulting in a tax benefit of approximately
$1.7
million, which also included a
one
-time
$384,000
reduction to our deferred tax liabilities due to the federal tax rate reduction. The Company also recognized a
one
-time charge of
$175,000
related to a true up of the fiscal
2017
income tax provision, which was recognized in the quarter ended
December 31, 2017.