Income Taxes (Tables)

12 Months Ended

Mar. 31, 2014

Earnings before income taxes were derived from the following sources:



	Years Ended March 31,
(In thousands)	2014		2013		2012
United States	$	539,063	$	519,833	$	482,832
Foreign	12,842		23,584		9,334
	$	551,905	$	543,417	$	492,166

Components of Income Tax Expense

Income tax expense consists of:



	Years Ended March 31,
(In thousands)	2014			2013			2012
Current:
Federal	$	184,308		$	145,603		$	94,665
Foreign	4,561			7,042			2,758
State	19,121			13,589			12,817
	207,990			166,234			110,240
Deferred:
Federal	(4,722		)	26,993			65,456
Foreign	(1,127		)	(975		)	474
State	(1,020		)	10,291			2,622
	(6,869		)	36,309			68,552
	$	201,121		$	202,543		$	178,792

Effective Income Tax Rate Reconciliation

Significant differences between taxes computed at the federal statutory rate and the provision for income taxes were:



	Years Ended March 31,
	2014		2013		2012
Taxes at U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit	2.1	%	2.9	%	2.5	%
Stock-based compensation expense	0.1	%	0.2	%	0.2	%
State tax effect of corporate reorganization	—	%	—	%	(0.7	)%
Domestic production activities deduction	(1.0	)%	(0.9	)%	(0.4	)%
Other, net	0.2	%	0.1	%	(0.3	)%
	36.4	%	37.3	%	36.3	%

Deferred Tax Assets and Liabilities

The tax effects of cumulative temporary differences and carryforwards that gave rise to the significant portions of the deferred tax assets and liabilities were as follows:



	March 31,
(In thousands)	2014			2013
Deferred Tax Assets:
Inventories	$	25,874		$	24,202
Accounts receivable	1,274			—
Deferred rental income	18,256			16,519
Insurance reserves	12,627			13,622
Litigation settlement and other reserves	3,181			3,856
Asset retirement obligations	7,180			6,463
Stock-based compensation	30,934			25,826
Other	20,590			19,694
Net operating loss carryforwards	13,081			16,419
Valuation allowance	(308		)	(2,127		)
	132,689			124,474
Deferred Tax Liabilities:
Accounts receivable	—			(937		)
Plant and equipment	(702,080		)	(713,132		)
Intangible assets	(188,289		)	(170,310		)
Other	(10,256		)	(12,145		)
	(900,625		)	(896,524		)
Net deferred tax liability	$	(767,936	)	$	(772,050	)

Deferred Tax Assets and Liabilities by Balance Sheet Grouping

Current deferred tax assets and current deferred tax liabilities have been netted for presentation purposes. Non-current deferred tax assets and non-current deferred tax liabilities have also been netted. Deferred tax assets and liabilities are reflected in the Company’s consolidated balance sheets as follows:



	March 31,
(In thousands)	2014			2013
Current deferred income tax asset, net	$	57,961		$	53,562
Non-current deferred income tax liability, net	(825,897		)	(825,612		)
Net deferred tax liability	$	(767,936	)	$	(772,050	)

Unrecognized Net Income Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized net income tax benefits, including penalties associated with uncertain tax positions, is as follows:



	March 31,
(In thousands)	2014			2013
Beginning unrecognized net income tax benefits	$	16,467		$	14,146
Additions for current year tax positions	3,054			2,419
Additions for tax positions of prior years	151			969
Reductions for tax positions of prior years	(1,448		)	(1,067		)
Reductions for settlements with taxing authorities	—			—
Reductions as a result of expiration of applicable statutes of limitations	—			—
Ending unrecognized net income tax benefits	$	18,224		$	16,467