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INCOME TAXES
12 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES

(G) Income Taxes

The provision for income taxes includes the following components:

 

 

 

For the Years Ended March 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Current Provision (Benefit) -

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

32,710

 

 

$

58,695

 

 

$

86,459

 

State

 

 

6,536

 

 

 

5,989

 

 

 

7,638

 

 

 

 

39,246

 

 

 

64,684

 

 

 

94,097

 

Deferred Provision (Benefit) -

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(21,039

)

 

 

(52,333

)

 

 

7,274

 

State

 

 

(7,332

)

 

 

2,979

 

 

 

(5,071

)

 

 

 

(28,371

)

 

 

(49,354

)

 

 

2,203

 

Provision for Income Taxes

 

$

10,875

 

 

$

15,330

 

 

$

96,300

 

 

 

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

 

 

 

For the Years Ended March 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Earnings Before Income Taxes

 

$

79,735

 

 

$

271,962

 

 

$

294,519

 

Income Taxes at Statutory Rate

 

$

16,744

 

 

$

85,804

 

 

$

103,082

 

Increases (Decreases) in Tax Resulting from -

 

 

 

 

 

 

 

 

 

 

 

 

State Income Taxes, net

 

 

(629

)

 

 

6,139

 

 

 

1,668

 

Statutory Depletion in Excess of Cost

 

 

(3,834

)

 

 

(6,341

)

 

 

(1,216

)

Domestic Production Activities Deduction

 

 

 

 

 

(5,995

)

 

 

(7,615

)

Excess Tax Benefit from Stock Compensation

 

 

(651

)

 

 

(4,129

)

 

 

 

Meals and Entertainment Disallowance

 

 

610

 

 

 

567

 

 

 

626

 

Limitation on Officer's Compensation

 

 

1,434

 

 

 

246

 

 

 

 

Impact of Tax Cuts and Jobs Act of 2017

 

 

 

 

 

(61,692

)

 

 

 

Credits

 

 

(940

)

 

 

 

 

 

 

Valuation Allowance

 

 

(2,100

)

 

 

 

 

 

 

Other

 

 

241

 

 

 

731

 

 

 

(245

)

Provision for Income Taxes

 

$

10,875

 

 

$

15,330

 

 

$

96,300

 

Effective Tax Rate

 

 

14

%

 

 

6

%

 

 

33

%

 

 


Components of deferred income taxes are as follows:

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

Items Giving Rise to Deferred Tax Liabilities -

 

 

 

 

 

 

 

 

Excess Tax Depreciation and Amortization

 

$

(108,505

)

 

$

(106,367

)

Depletion

 

 

 

 

 

(11,069

)

State Income Taxes, net

 

 

(9,236

)

 

 

(14,265

)

Other

 

 

(5,628

)

 

 

(5,957

)

Total Deferred Tax Liabilities

 

$

(123,369

)

 

$

(137,658

)

Items Giving Rise to Deferred Tax Assets -

 

 

 

 

 

 

 

 

Change in Accruals

 

$

8,601

 

 

$

8,965

 

Depletable Assets

 

 

8,995

 

 

 

 

Inventory

 

 

6,046

 

 

 

4,276

 

Bad Debts

 

 

2,169

 

 

 

1,891

 

Long-term Incentive Compensation Plan

 

 

5,154

 

 

 

4,616

 

Credits and Other Carryforwards

 

 

12,289

 

 

 

12,879

 

Pension

 

 

921

 

 

 

1,108

 

Subtotal

 

 

44,175

 

 

 

33,735

 

Valuation Allowance

 

 

(11,565

)

 

 

(15,043

)

Total Deferred Tax Assets

 

$

32,610

 

 

$

18,692

 

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 have state income tax investment credits of $2.0 million, net of Valuation Allowances. The state investment credits may be carried forward indefinitely.

During fiscal 2019, we recorded a decrease in the valuation allowance against our Deferred Tax Assets of $2.1 million. This decrease relates to changes in estimates of the realizability of certain deferred tax assets related to the long-term incentive compensation plan.

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. There were no uncertain tax positions at March 31, 2019, 2018, and 2017.

Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017. The Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%, allows for the immediate 100% deductibility of certain capital expenditures, repeals the domestic production deduction, and further limits the deductibility of certain executive compensation. In December 2017, we recorded a tax benefit of $61.0 million related to the change in corporate tax rates that reduced our deferred tax liabilities after the initial assessment of the tax effects of the Act. In the quarter ended December 31, 2018, we finalized our accounting for the Act with no material changes from our provisional calculations.