Note 4 - Income Taxes

12 Months Ended

Mar. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 4 – INCOME TAXES

Transcat’s net income before income taxes on the Consolidated Statements of Operations is as follows:

	FY 2013			FY 2012
United States	$	6,188		$	5,679
Foreign		(470	)		(433	)
Total	$	5,718		$	5,246

The net provision for income taxes for fiscal years 2013 and 2012 is as follows:

	FY 2013			FY 2012
Current Tax Provision:
Federal	$	1,701		$	1,685
State		270			168
		1,971			1,853
Deferred Tax Provision (Benefit):
Federal		113			117
State		(70	)		(26	)
		43			91
Provision for Income Taxes	$	2,014		$	1,944

A reconciliation of the income tax provision computed by applying the statutory United States federal income tax rate and the income tax provision reflected in the Consolidated Statements of Operations is as follows:

	FY 2013			FY 2012
Federal Income Tax at Statutory Rate	$	1,944		$	1,784
State Income Taxes, net of Federal benefit		229			210
Other, net		(159	)		(50	)
Total	$	2,014		$	1,944

The components of the net deferred tax assets (liabilities) are as follows:

	March 30,  2013			March 31, 2012
Current Deferred Tax Assets:
Accrued Liabilities	$	333		$	306
Performance-Based Grants		483			476
Other		271			259
Total Current Deferred Tax Assets		1,087			1,041
Non-Current Deferred Tax Assets (Liabilities):
Goodwill and Intangible Assets		(1,449	)		(1,129	)
Depreciation		(777	)		(475	)
Stock-Based Compensation		780			794
Other Liabilities		556			377
Foreign Tax Credits		-			36
Other		339			258
Total Non-Current Deferred Tax Liabilities		(551	)		(139	)
Net Deferred Tax Assets	$	536		$	902

Deferred U.S. income taxes have not been recorded for basis differences related to the investments in the Company’s foreign subsidiary.  The Company considers undistributed earnings, if any, as permanently reinvested in the subsidiary.  Therefore, the determination of a deferred tax liability on unremitted earnings would not be practicable because such liability, if any, would depend on circumstances existing if and when remittance occurs.  At March 30, 2013, there were no undistributed earnings. As of March 30, 2013, the Company has net operating loss carry forwards, relating to its foreign subsidiary, of $0.9 million, which are available to offset future taxable income of the subsidiary through March 2033.

The Company files income tax returns in the U.S. federal jurisdiction, various states and Canada.  The Company is no longer subject to examination by U.S. federal income tax authorities for the fiscal years 2009 and prior, by state tax authorities for the fiscal years 2007 and prior, and by Canadian tax authorities for the fiscal years 2005 and prior.  There are no tax years currently under examination by U.S. federal, state or Canadian tax authorities.

During fiscal years 2013 and 2012, there were no uncertain tax positions, and the Company expects no material uncertain tax positions within the next twelve months.  The Company recognizes interest and penalties, if any, related to uncertain tax positions in the provision for income taxes.  No interest or penalties related to uncertain tax positions were recognized in fiscal years 2013 and 2012 or were accrued at March 30, 2013 and March 31, 2012.