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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes [Abstract]  
Income Taxes
Note 7, Income Taxes:


The provision for income taxes for the years ended December 31 consist of the following:
 
(In thousands)
  
2021
    
2020
    
2019
  
Current
                  
Federal
  
$
22,832
    
$
16,831
    
$
7,701
  
State
    
4,666
      
3,210
      
1,849
  
     
27,498
      
20,041
      
9,550
  
Deferred
                        
Federal
    
589
   
(1,217
)
    
(2,217
)
State
    
(355
)
    
(1,241
)
    
(474
)
     
234
   
(2,458
)
    
(2,691
)
Total income tax expense
  
$
27,732
    
$
17,583
    
$
6,859
  


Cares Act

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary suspension of certain payment requirements for the employer-paid portion of social security taxes, the creation of certain refundable employee retention credits, and technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property. We elected to defer the employer-paid portion of social security taxes beginning with pay dates on and after April 1, 2020 and through December 31, 2020 and have deferred $1,607,000 which is included in accrued liabilities. During 2020, we recorded $2,301,000 for refundable employee retention credits reducing selling, general and administrative expenses. We also benefited from the technical correction for qualified leasehold improvements eligible for 100% tax bonus depreciation which reduced our 2019 income tax liability by approximately $2,053,000 and we adjusted our deferred income taxes and income taxes receivable accordingly.

The differences between income tax expense in the accompanying Consolidated Financial Statements and the amount computed by applying the statutory Federal income tax rate are as follows:
(In thousands)
  
2021
    
2020
    
2019
  
Statutory rates applied to income before income taxes
  
$
24,949
    
$
16,164
    
$
6,032
  
State income taxes, net of Federal tax benefit
    
3,836
      
2,057
      
1,149
  
Net permanent differences
    
(498
)
    
520
      
228
  
Other
    
78
      
48
      
(128
)
Leases
    
—
      
—
      
(418
)
Federal tax credits
     (152 )     —       —  
State tax credits
    
(481
)
    
(1,206
)
    
(4
)
   
$
27,732
    
$
17,583
    
$
6,859
  



Our effective tax rate differs from the federal statutory rate primarily due to state income taxes. In 2020 we completed the computations and recorded in the fourth quarter, state quality jobs credits of $1,527,000 generated in 2018, 2019, and 2020.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The amounts in the following table are grouped based on broad categories of items that generate the deferred tax assets and liabilities.
(In thousands)
  
2021
    
2020
  
Deferred tax assets:
            
Property and equipment
  
$
6,944
    
$
8,868
  
Lease liabilities
    
57,588
      
58,417
  
Accrued liabilities
    
11,306
      
9,885
  
Retirement benefits
    
573
      
662
  
State tax credits
    
2,087
      
943
  
Other
    
676
      
660
  
Total deferred tax assets
    
79,174
      
79,435
  
                 
Deferred tax liabilities:
    
         
Inventory related
    
6,389
      
7,135
  
Right-of-use lease assets
    
55,816
      
56,032
  
Other
    
594
      
454
  
Total deferred tax liabilities
    
62,799
      
63,621
  
Net deferred tax assets
  
$
16,375
    
$
15,814
  



We review our deferred tax assets to determine the need for a valuation allowance. Based on evidence, we concluded that it is more-likely-than-not that our deferred tax assets will be realized and therefore a valuation allowance is not required.

We file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With respect to U.S. federal, state and local jurisdictions, with limited exceptions, we are no longer subject to income tax audits for years before 2018.
Uncertain Tax Positions

Interest and penalties associated with uncertain tax positions, if any, are recognized as components of income tax expense.  No amounts for uncertain tax positions were recorded for the years currently open under statute of limitations.