Income Taxes

12 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE 4 — INCOME TAXES

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

	FY 2012			FY 2011			FY 2010
United States	$	5,679		$	4,483		$	2,289
Foreign		(433	)		(1	)		(6	)
Total	$	5,246		$	4,482		$	2,283

The net provision for income taxes for fiscal years 2012, 2011 and 2010 is as follows:

	FY 2012			FY 2011		FY 2010
Current Tax Provision:
Federal	$	1,685		$	1,402	$	710
State		168			154		87
		1,853			1,556		797
Deferred Tax Provision (Benefit):
Federal		117			133		34
State		(26	)		5		1
		91			138		35
Provision for Income Taxes	$	1,944		$	1,694	$	832

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 2012			FY 2011			FY 2010
Federal Income Tax at Statutory Rate	$	1,784		$	1,524		$	776
State Income Taxes, net of Federal benefit		210			179			91
Other, net		(50	)		(9	)		(35	)
Total	$	1,944		$	1,694		$	832

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

	March 31, 2012			March 26, 2011
Current Deferred Tax Assets:
Accrued Liabilities	$	306		$	276
Performance-Based Grants		476			131
Other		259			224
Total Current Deferred Tax Assets		1,041			631
Non-Current Deferred Tax (Liabilities) Assets:
Stock-Based Compensation		794			807
Foreign Tax Credits (expiring through March 2018)		36			394
Depreciation		(475	)		(506	)
Goodwill and Intangible Assets		(1,129	)		(905	)
Other Liabilities		377			268
Other		258			238
Total Non-Current Deferred Tax (Liabilities) Assets		(139	)		296
Net Deferred Tax Assets	$	902		$	927

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 31, 2012, there were no undistributed earnings.

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 tax years 2008 and prior, by state tax authorities for the tax years 2007 and prior, and by Canadian tax authorities for the tax years 2002 and prior. There are no tax years currently under examination by U.S. federal, state or Canadian tax authorities.

During fiscal years 2012, 2011 and 2010, the Company recognized no adjustments for material uncertain tax benefits and expects no material changes to unrecognized 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 2012, 2011 and 2010 or were accrued at March 31, 2012 and March 26, 2011.