Provision for Taxes (Table Text Block)
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12 Months Ended |
Mar. 31, 2024 |
Table Text Block [Abstract] |
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Provision For Taxes |
Earnings before taxes and the provision for taxes consisted of the following:
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Years Ended March 31, |
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2024 |
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2023 |
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2022 |
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(In thousands) |
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Pretax earnings: |
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U.S. |
$ |
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816,238 |
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$ |
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1,179,738 |
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$ |
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1,432,231 |
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Non-U.S. |
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23,939 |
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39,659 |
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44,342 |
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Total pretax earnings |
$ |
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840,177 |
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$ |
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1,219,397 |
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$ |
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1,476,573 |
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Current provision |
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Federal |
$ |
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66,356 |
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$ |
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115,171 |
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$ |
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189,488 |
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State |
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44,707 |
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42,121 |
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55,518 |
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Non-U.S. |
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254 |
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5,150 |
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6,893 |
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111,317 |
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162,442 |
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251,899 |
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Deferred provision |
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Federal |
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88,549 |
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114,355 |
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90,852 |
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State |
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6,542 |
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14,077 |
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6,355 |
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Non-U.S. |
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5,062 |
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4,051 |
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3,105 |
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100,153 |
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132,483 |
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100,312 |
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Provision for income tax expense |
$ |
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211,470 |
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$ |
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294,925 |
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$ |
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352,211 |
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Income taxes paid (received) |
$ |
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68,623 |
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$ |
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145,680 |
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$ |
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(4,548 |
) |
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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:
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Years Ended March 31, |
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2024 |
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2023 |
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2022 |
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(In percentages) |
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Statutory federal income tax rate |
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21.00 |
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% |
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21.00 |
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% |
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21.00 |
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% |
Increase (reduction) in rate resulting from: |
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State taxes, net of federal benefit |
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4.78 |
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% |
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3.56 |
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% |
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3.24 |
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% |
Foreign rate differential |
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0.03 |
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% |
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0.08 |
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% |
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0.05 |
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% |
Federal tax credits |
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(0.58 |
) |
% |
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(0.48 |
) |
% |
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(0.19 |
) |
% |
Tax-exempt income |
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(0.04 |
) |
% |
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(0.08 |
) |
% |
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(0.03 |
) |
% |
Dividend received deduction |
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(0.01 |
) |
% |
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(0.01 |
) |
% |
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— |
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% |
Other |
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(0.01 |
) |
% |
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0.15 |
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% |
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(0.22 |
) |
% |
Effective income tax rate |
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25.17 |
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% |
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24.22 |
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% |
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23.85 |
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% |
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Components of Deferred Tax Assets and Liabilities |
Significant components of our deferred tax assets and liabilities were as follows:
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March 31, |
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2024 |
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2023 |
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Deferred tax assets: |
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(In thousands) |
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Benefit of tax net operating loss, interest and credit carryforwards |
$ |
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36,978 |
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$ |
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33,778 |
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Accrued expenses |
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117,481 |
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112,971 |
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Policy benefit and losses, claims and loss expenses payable, net |
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33,736 |
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36,374 |
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Unrealized losses on investments |
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32,856 |
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48,179 |
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Operating leases |
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11,521 |
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12,058 |
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Total deferred tax assets |
$ |
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232,572 |
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$ |
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243,360 |
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Deferred tax liabilities: |
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Property, plant and equipment |
$ |
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1,655,074 |
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$ |
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1,545,628 |
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Operating leases |
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11,214 |
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12,175 |
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Deferred policy acquisition costs |
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10,709 |
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12,038 |
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Other |
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2,700 |
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3,008 |
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Total deferred tax liabilities |
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1,679,697 |
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1,572,849 |
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Net deferred tax liability |
$ |
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1,447,125 |
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$ |
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1,329,489 |
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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:
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Unrecognized Tax Benefits |
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March 31, |
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2024 |
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2023 |
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(In thousands) |
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Unrecognized tax benefits beginning balance |
$ |
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58,107 |
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$ |
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48,851 |
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Additions based on tax positions related to the current year |
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10,202 |
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7,226 |
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Reductions for tax positions of prior years |
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(27,536 |
) |
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(443 |
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Additions for tax provisions of prior years |
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41,203 |
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2,473 |
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Unrecognized tax benefits ending balance |
$ |
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81,976 |
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$ |
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58,107 |
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