INCOME TAXES

12 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

(I) Income Taxes

The provision for income taxes from continuing operations includes the following components:

	For the Years Ended March 31,
	2025			2024		2023
	(dollars in thousands)
Current Provision
Federal	$	114,606		$	111,690	$	103,940
State		18,411			20,689		18,520
		133,017			132,379		122,460
Deferred Provision (Benefit)
Federal		(5,117	)		5,607		11,321
State		169			2,312		(6,728	)
		(4,948	)		7,919		4,593
Provision for Income Taxes	$	128,069		$	140,298	$	127,053

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

	For the Years Ended March 31,
	2025			2024			2023
	(dollars in thousands)
Earnings Before Income Taxes	$	591,485		$	617,937		$	588,593
Income Taxes at Statutory Rate	$	124,212		$	129,766		$	123,605
Increases (Decreases) in Tax Resulting From
State Income Taxes, net		14,680			18,172			16,821
Statutory Depletion in Excess of Cost		(9,927	)		(9,883	)		(8,253	)
Excess Tax Benefit from Stock Compensation		(3,951	)		(5,417	)		(1,593	)
Meals and Entertainment Disallowance		478			524			484
Limitation on Officers' Compensation		4,843			6,513			3,009
Valuation Allowance		500			500			(7,205	)
Other		(2,766	)		123			185
Provision for Income Taxes	$	128,069		$	140,298		$	127,053
Effective Tax Rate		22	%		23	%		22	%

Components of deferred income taxes are as follows:

	For the Years Ended March 31,
	2025			2024
	(dollars in thousands)
Items Giving Rise to Deferred Tax Liabilities
Excess Tax Depreciation and Amortization	$	(256,999	)	$	(260,577	)
Depletable Assets		(4,455	)		(4,294	)
Investment in Joint Venture Basis Differences		(6,436	)		(7,710	)
Right-of-Use Assets		(7,996	)		(4,774	)
Inventory		(1,276	)		—
Other		—			(2,956	)
Total Deferred Tax Liabilities	$	(277,162	)	$	(280,311	)
Items Giving Rise to Deferred Tax Assets
Change in Accruals	$	12,866		$	13,313
Bad Debts		1,551			1,621
Long-term Incentive Compensation Plan		4,609			3,622
Credits and Other Carryforwards		9,905			11,466
Lease Liability		9,303			6,598
Inventory		—			307
Pension		984			1,087
Other		1,002			—
Subtotal		40,220			38,014
Valuation Allowance		(3,000	)		(2,500	)
Total Deferred Tax Assets	$	37,220		$	35,514

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 had state net operating loss carryforwards of $1.6 million at both March 31, 2025 and 2024, net of Valuation Allowances. We had state income tax credit carryforward deferred tax assets of $8.3 million at March 31, 2025, and $9.9 million at March 31, 2023, net of Valuation Allowances. The state income tax credits may be carried forward indefinitely.

We file income tax returns in U.S. federal and various state jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 31, 2022, and forward.

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.

We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when the more-likely-than-not threshold is met. The changes in unrecognized tax benefits for the years ended March 31, 2025, 2024, and 2023 were as follows:

	For the Years Ended March 31,
	2025			2024		2023
	(dollars in thousands)
Balance at Beginning of Year	$	1,284		$	1,284	$	1,284
Increase Related to Current Tax Positions		—			—		—
Decrease Related to Prior Year Tax Positions		(1,284	)		—		—
Payments		—			—		—
	$	—		$	1,284	$	1,284

We classify interest and penalties related to uncertain tax positions as current income tax expense. We recorded no interest and penalties for each of the fiscal years ended March 31, 2025, 2024, and 2023.