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Provision for Taxes (Table Text Block)
12 Months Ended
Mar. 31, 2024
Table Text Block [Abstract]  
Provision For Taxes

Earnings before taxes and the provision for taxes consisted of the following:

 

 

 

Years Ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Pretax earnings:

 

 

 

 

U.S.

$

 

816,238

 

$

 

1,179,738

 

$

 

1,432,231

 

Non-U.S.

 

23,939

 

 

 

39,659

 

 

 

44,342

 

Total pretax earnings

$

 

840,177

 

$

 

1,219,397

 

$

 

1,476,573

 

 

 

 

 

 

 

 

 

 

 

Current provision

 

 

 

 

 

 

 

 

 

Federal

$

 

66,356

 

$

 

115,171

 

$

 

189,488

 

State

 

 

44,707

 

 

 

42,121

 

 

 

55,518

 

Non-U.S.

 

 

254

 

 

 

5,150

 

 

 

6,893

 

 

 

 

111,317

 

 

 

162,442

 

 

 

251,899

 

Deferred provision

 

 

 

 

 

 

 

 

 

Federal

 

 

88,549

 

 

 

114,355

 

 

 

90,852

 

State

 

 

6,542

 

 

 

14,077

 

 

 

6,355

 

Non-U.S.

 

 

5,062

 

 

 

4,051

 

 

 

3,105

 

 

 

 

100,153

 

 

 

132,483

 

 

 

100,312

 

 

 

 

 

 

 

 

 

 

 

Provision for income tax expense

$

 

211,470

 

$

 

294,925

 

$

 

352,211

 

 

 

 

 

 

 

 

 

 

 

Income taxes paid (received)

$

 

68,623

 

$

 

145,680

 

$

 

(4,548

)

Schedule of Effective Income Tax Rate Reconciliation

The difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to income before taxes was as follows:

 

 

 

Years Ended March 31,

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

 

(In percentages)

 

 

Statutory federal income tax rate

 

21.00

 

%

 

21.00

 

%

 

21.00

 

%

Increase (reduction) in rate resulting from:

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal benefit

 

 

4.78

 

%

 

3.56

 

%

 

3.24

 

%

Foreign rate differential

 

 

0.03

 

%

 

0.08

 

%

 

0.05

 

%

Federal tax credits

 

 

(0.58

)

%

 

(0.48

)

%

 

(0.19

)

%

Tax-exempt income

 

 

(0.04

)

%

 

(0.08

)

%

 

(0.03

)

%

Dividend received deduction

 

 

(0.01

)

%

 

(0.01

)

%

 

—

 

%

Other

 

 

(0.01

)

%

 

0.15

 

%

 

(0.22

)

%

Effective income tax rate

 

 

25.17

 

%

 

24.22

 

%

 

23.85

 

%

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows:

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

Deferred tax assets:

 

(In thousands)

 

Benefit of tax net operating loss, interest and credit carryforwards

$

 

36,978

 

$

 

33,778

 

Accrued expenses

 

 

117,481

 

 

 

112,971

 

Policy benefit and losses, claims and loss expenses payable, net

 

 

33,736

 

 

 

36,374

 

Unrealized losses on investments

 

 

32,856

 

 

 

48,179

 

Operating leases

 

 

11,521

 

 

 

12,058

 

Total deferred tax assets

$

 

232,572

 

$

 

243,360

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant and equipment

$

 

1,655,074

 

$

 

1,545,628

 

Operating leases

 

 

11,214

 

 

 

12,175

 

Deferred policy acquisition costs

 

 

10,709

 

 

 

12,038

 

Other

 

 

2,700

 

 

 

3,008

 

Total deferred tax liabilities

 

 

1,679,697

 

 

 

1,572,849

 

Net deferred tax liability

$

 

1,447,125

 

$

 

1,329,489

 

Reconciliation of Total Amounts of Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period are as follows:

 

 

 

Unrecognized Tax Benefits

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

Unrecognized tax benefits beginning balance

$

 

58,107

 

$

 

48,851

 

Additions based on tax positions related to the current year

 

 

10,202

 

 

 

7,226

 

Reductions for tax positions of prior years

 

 

(27,536

)

 

 

(443

)

Additions for tax provisions of prior years

 

 

41,203

 

 

 

2,473

 

Unrecognized tax benefits ending balance

$

 

81,976

 

$

 

58,107