Income Taxes

12 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes

Note E — Income Taxes

The income tax provision consisted of the following for the three fiscal years ended March 31, 2010, 2011 and 2012:

	2010			2011			2012
Current — Federal	$	14,333,000		$	8,888,000		$	5,896,000
Current — State		2,746,000			3,228,000			1,938,000
Subtotal		17,079,000			12,116,000			7,834,000
Deferred — Federal		750,000			1,136,000			8,104,000
Deferred — State		(442,000	)		(512,000	)		947,000
Subtotal		308,000			624,000			9,051,000
	$	17,387,000		$	12,740,000		$	16,885,000

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the three fiscal years ended March 31, 2010, 2011 and 2012:

	2010		2011			2012
Income taxes at federal statutory rate (35%)	$	15,219,000	$	13,091,000		$	15,203,000
State income taxes, net of federal benefit		1,826,000		1,772,000			1,615,000
FIN 48 benefit		—		(1,649,000	)		26,000
Other		342,000		(474,000	)		41,000
	$	17,387,000	$	12,740,000		$	16,885,000

Income taxes paid totaled $17,275,000, $13,740,000, and $12,935,000 for the fiscal years ended March 31, 2010, 2011, and 2012, respectively.

Deferred tax assets and liabilities at March 31, 2011 and 2012 are:

	2011			2012
Deferred income tax assets:
Accrued liabilities not currently deductible	$	8,825,000		$	5,123,000
Allowance for doubtful accounts		1,029,000			958,000
FIN 48 income tax benefits		653,000			—
Stock-based compensation		1,344,000			1,605,000
Other		903,000			1,760,000
Deferred assets		12,754,000			9,446,000
Deferred income tax liabilities:
Excess of book over tax basis of fixed assets		(8,828,000	)		(14,220,000	)
Intangible assets		(3,800,000	)		(4,256,000	)
Other		(576,000	)		(471,000	)
Deferred liabilities		(13,204,000	)		(18,947,000	)
Net deferred tax asset/(liability)	$	(450,000	)	$	(9,501,000	)

Prepaid expenses and taxes include $2,847,000 and $7,909,000 at March 31, 2011 and 2012, respectively, for income taxes due in the first quarter of the succeeding fiscal year.

In July 2006, the FASB issued guidance which prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company adopted this guidance effective April 1, 2007, and recognized a $2,700,461 increase in the liability for unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of March 31, 2011	$	1,608,000
Additions based on tax positions related to the current year		146,000
Additions for tax positions of prior years		117,000
Reductions for tax positions of prior years		(888,000	)
Balance as of March 31, 2012	$	983,000

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fiscal years ended March 31, 2010, 2011 and 2012, the Company recognized approximately $96,000, ($1,270,000) and ($396,000) in interest and penalties, respectively. As of March 31, 2010, 2011 and 2012, accrued interest and penalties related to uncertain tax positions were $1,843,000, $572,000 and $176,000, respectively.

The Company believes there will be a material reduction in its unrecognized tax benefits within the next 12 months due to settlements with various tax jurisdictions.

The tax fiscal years 2008-2011 remain open to examination by the major taxing jurisdictions to which the Company is subject.