XML 57 R31.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision (benefit) for income taxes consists of the following:
| Years Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (in thousands) |  |  |  |
Current | $ | 7,282 |  |  | $ | 10,530 |  |  | $ | 21,543 |
Deferred | 6,038 |  |  | 2,641 |  |  | (749) |
Total | $ | 13,320 |  |  | $ | 13,171 |  |  | $ | 20,794 |
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before the provision for income taxes. The reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:
| Years Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
Federal statutory rate | 21 | % |  | 21 | % |  | 35 | %
State income taxes, net of federal benefit | 5 | % |  | 6 | % |  | 5 | %
Remeasurement of deferred taxes | — | % |  | — | % |  | (5) | %
Domestic manufacturing deduction | — | % |  | — | % |  | (3) | %
Excess tax benefits | (3) | % |  | (2) | % |  | (3) | %
Return to provision | (1) | % |  | — | % |  | — | %
Oklahoma amended tax returns | (1) | % |  | — | % |  | — | %
Other | (1) | % |  | (1) | % |  | (1) | %
| 20 | % |  | 24 | % |  | 28 | %
The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Major changes under the Act include the following: •Reducing the corporate rate to 21 percent •Doubling bonus depreciation to 100 percent for five years •Further limitations on executive compensation deductions •Eliminating the domestic manufacturing deduction As a result of these changes, the Company adjusted its deferred tax assets and liabilities in 2017 using the newly enacted rates for the periods when they are expected to be realized. The remeasurement in 2017 resulted in a benefit to income taxes of $3.7 million. The new bonus depreciation provisions resulted in the Company taking $3.2 million of bonus depreciation in 2017. The Company also has historically taken the domestic manufacturing deduction. The Company will no longer receive the benefit of this deduction which typically has lowered our effective tax rate by 3.0%. The Company sometimes has executive compensation that exceeds the $1.0 million limitation. Typically the limit is exceeded due to the volume of stock activity performed by the executives during the year. The limit could also be exceeded by the Chief Executive Officer receiving the maximum amount under our executive annual cash incentive bonus plan. Any compensation that exceeded this limitation in 2018 and in the future will be a permanent difference and cause an increase to our income tax provision. Upon completion of the Company's 2018 tax return in 2019, the Company recorded additional benefit due to higher than expected research and development credit of $0.6 million. Additionally in 2019, the Company determined it could take advantage of an additional 1% tax credit in Oklahoma for years in which the Company's location was deemed to be within an enterprise zone. The additional OK Credit for being in an enterprise zone, or otherwise allowable under Oklahoma law, resulted in a benefit of $1.2 million. 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 amount used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities are as follows:
| December 31, |  |
| 2019 |  | 2018
| (in thousands) |  |
Deferred income tax assets (liabilities): |  |  |
Accounts receivable and inventory reserves | $ | 835 |  |  | $ | 401 |
Warranty accrual | 3,523 |  |  | 3,105 |
Other accruals | 1,919 |  |  | 2,445 |
Share-based compensation | 3,906 |  |  | 3,264 |
Donations | 194 |  |  | 80 |
Other, net | 2,140 |  |  | 851 |
Total deferred income tax assets | 12,517 |  |  | 10,146 |
Property & equipment | (27,814) |  |  | (19,405) |
Total deferred income tax liabilities | $ | (27,814) |  |  | $ | (19,405) |
Net deferred income tax liabilities | $ | (15,297) |  |  | $ | (9,259) |
We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. examinations for tax years 2016 to present, and to non-U.S. income tax examinations for the tax years 2015 to present. In addition, we are subject to state and local income tax examinations for tax years 2015 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration