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INCOME TAXES
12 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES

(I) Income Taxes

The provision for income taxes from continuing operations includes the following components:

 

 

 

For the Years Ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Current Provision

 

 

 

 

 

 

 

 

 

Federal

 

$

111,690

 

 

$

103,940

 

 

$

87,626

 

State

 

 

20,689

 

 

 

18,520

 

 

 

6,924

 

 

 

 

132,379

 

 

 

122,460

 

 

 

94,550

 

Deferred Provision (Benefit)

 

 

 

 

 

 

 

 

 

Federal

 

 

5,607

 

 

 

11,321

 

 

 

3,491

 

State

 

 

2,312

 

 

 

(6,728

)

 

 

2,806

 

 

 

 

7,919

 

 

 

4,593

 

 

 

6,297

 

Provision for Income Taxes

 

$

140,298

 

 

$

127,053

 

 

$

100,847

 

 

 

The effective tax rates vary from the federal statutory rates due to the following items:

 

 

 

For the Years Ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Earnings Before Income Taxes

 

$

617,937

 

 

$

588,593

 

 

$

475,094

 

Income Taxes at Statutory Rate

 

$

129,766

 

 

$

123,605

 

 

$

99,770

 

Increases (Decreases) in Tax Resulting from

 

 

 

 

 

 

 

 

 

State Income Taxes, net

 

 

18,172

 

 

 

16,821

 

 

 

12,743

 

Statutory Depletion in Excess of Cost

 

 

(9,883

)

 

 

(8,253

)

 

 

(7,796

)

Excess Tax Benefit from Stock Compensation

 

 

(5,417

)

 

 

(1,593

)

 

 

(3,048

)

Meals and Entertainment Disallowance

 

 

524

 

 

 

484

 

 

 

279

 

Limitation on Officer's Compensation

 

 

6,513

 

 

 

3,009

 

 

 

2,568

 

Valuation Allowance

 

 

500

 

 

 

(7,205

)

 

 

(4,556

)

Other

 

 

123

 

 

 

185

 

 

 

887

 

Provision for Income Taxes

 

$

140,298

 

 

$

127,053

 

 

$

100,847

 

Effective Tax Rate

 

 

23

%

 

 

22

%

 

 

21

%

 

Components of deferred income taxes are as follows:

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Items Giving Rise to Deferred Tax Liabilities

 

 

 

 

 

 

Excess Tax Depreciation and Amortization

 

$

(260,577

)

 

$

(253,541

)

Investment in Joint Venture Basis Differences

 

 

(4,294

)

 

 

(8,744

)

Depletable Assets

 

 

(7,710

)

 

 

(3,876

)

Right-of-Use Assets

 

 

(4,774

)

 

 

(5,202

)

Inventory

 

 

 

 

 

(406

)

Other

 

 

(2,956

)

 

 

(2,908

)

Total Deferred Tax Liabilities

 

$

(280,311

)

 

$

(274,677

)

Items Giving Rise to Deferred Tax Assets

 

 

 

 

 

 

Change in Accruals

 

$

13,313

 

 

$

12,886

 

Bad Debts

 

 

1,621

 

 

 

1,662

 

Long-term Incentive Compensation Plan

 

 

3,622

 

 

 

3,515

 

Credits and Other Carryforwards

 

 

11,466

 

 

 

12,995

 

Lease Liability

 

 

6,598

 

 

 

7,647

 

Inventory

 

 

307

 

 

 

 

Pension

 

 

1,087

 

 

 

1,128

 

Subtotal

 

 

38,014

 

 

 

39,833

 

Valuation Allowance

 

 

(2,500

)

 

 

(2,000

)

Total Deferred Tax Assets

 

$

35,514

 

 

$

37,833

 

 

We record Deferred Tax Assets and Liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a Valuation Allowance, we consider both positive and negative evidence related to the likelihood of realization of the Deferred Tax Assets. If, based on the weight of available evidence, it is more likely than not that a Deferred Tax Asset will not be realized, we record a Valuation Allowance.

We had state net operating loss carryforwards of $1.6 million at March 31, 2024, compared with $2.3 million at March 31, 2023, net of Valuation Allowance. We had state income tax credit carryforwards of $9.9 million at March 31, 2024, compared with $10.7 million at March 31, 2023, net of Valuation Allowance. The state income tax credits may be carried forward indefinitely.

We file income tax returns in U.S. federal and various state jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 31, 2019, and forward.

Uncertain Tax Positions

We are subject to audit examinations at federal, state, and local levels by tax authorities in those jurisdictions who may challenge the treatment or reporting of any return item. The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of these challenges is subject to uncertainty.

We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when

the more-likely-than-not threshold is met. The change in unrecognized tax benefits for the years ended March 31, 2024, 2023, and 2022 was as follows:

 

 

 

For the Years Ended March 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Balance at Beginning of Year

 

$

1,284

 

 

$

1,284

 

 

$

1,284

 

Increase Related to Current Tax Positions

 

 

 

 

 

 

 

 

 

Decrease Related to Current Tax Positions

 

 

 

 

 

 

 

 

 

Payments

 

 

 

 

 

 

 

 

 

 

 

$

1,284

 

 

$

1,284

 

 

$

1,284

 

 

We classify interest and penalties related to uncertain tax positions as current income tax expense. We recorded no interest and penalties for each of the fiscal years ended March 31, 2024, 2023, and 2022.