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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes |
NOTE 6: | INCOME TAXES
Income tax expense (benefit) from continuing operations is composed of the following:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
Federal | $ | 12,637 |  |  | $ | 8,954 |  |  | $ | — |
State | 342 |  |  | 1,003 |  |  | 229 |
| 12,979 |  |  | 9,957 |  |  | 229 |
Deferred: |  |  |  |  |
Federal | (254 | ) |  | 3,174 |  |  | 5,010 |
State | 808 |  |  | (904 | ) |  | (2,974 | )
| 554 |  |  | 2,270 |  |  | 2,036 |
Total | $ | 13,533 |  |  | $ | 12,227 |  |  | $ | 2,265 |
Income tax expense also included tax expense (benefit) allocated to comprehensive income for 2016, 2015, and 2014, of $84 $83, and $(198), respectively (see the Consolidated Statements of Comprehensive Income). A reconciliation of income tax expense from operations at the normal statutory federal rate to the provision included in the accompanying Consolidated Statements of Income is shown below:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
"Expected" provision at federal statutory rate | $ | 15,651 |  |  | $ | 13,446 |  |  | $ | 9,116 |
State income taxes, net | 1,672 |  |  | 1,714 |  |  | 709 |
Change in valuation allowance | (718 | ) |  | (2,385 | ) |  | (7,618 | )
Domestic production activity deduction | (1,247 | ) |  | (1,002 | ) |  | — |
Share-based compensation(a) | (1,408 | ) |  | N/A |  |  | N/A |
Federal and state tax credits | (1,065 | ) |  | — |  |  | — |
Other | 648 |  |  | 454 |  |  | 58 |
Income tax expense | $ | 13,533 |  |  | $ | 12,227 |  |  | $ | 2,265 |
Effective tax rate | 30.3 | % |  | 31.8 | % |  | 8.7 | %
(a) | The Company elected to early adopt ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, in the quarter ended September 30, 2016 and, due to a required change in accounting principle, beginning that quarter, all excess tax benefits and deficiencies related to employee stock compensation are recognized within income tax expense in the Consolidated Statements of Income. The Company received a federal tax benefit of $1,408 and a state benefit of $163 for excess tax benefits in 2016 (see Note 9 for additional detail related to the ASU No. 2016-09 adoption).
The tax effects of temporary differences giving rise to deferred income taxes shown on the Consolidated Balance Sheets are as follows:
| December 31,
| 2016 |  | 2015
Deferred income tax assets: |  |  |
Post-retirement liability | $ | 1,621 |  |  | $ | 1,848 |
Deferred income | 1,176 |  |  | 1,343 |
Share-based compensation | 1,313 |  |  | 2,247 |
Capital loss carryforwards | 716 |  |  | 1,444 |
State tax credit carryforwards | 3,204 |  |  | 2,653 |
State operating loss carryforwards | 1,151 |  |  | 2,216 |
Inventories | 2,560 |  |  | 1,684 |
Other | 1,381 |  |  | 2,224 |
Gross deferred income tax assets | $ | 13,122 |  |  | $ | 15,659 |
Less: valuation allowance | (726 | ) |  | (1,444 | )
Net deferred income tax assets | 12,396 |  |  | 14,215 |
Deferred income tax liabilities: |  |  |
Fixed assets | (14,313 | ) |  | (16,050 | )
Equity method investments | (969 | ) |  | — |
Other | (546 | ) |  | (922 | )
Gross deferred income tax liabilities | (15,828 | ) |  | (16,972 | )
Net deferred income tax liability | $ | (3,432 | ) |  | $ | (2,757 | )
A schedule of the change in valuation allowance is as follows:
|  | Valuation allowance
Balance at December 31, 2014 |  | $ | 3,829 |
Reductions |  | 2,385 |
Balance at December 31, 2015 |  | $ | 1,444 |
Reductions |  | 718 |
Balance at December 31, 2016 |  | $ | 726 |
During 2015, the Company determined that it was more likely than not that it would realize a portion of its deferred tax assets. This determination was based on the Company's evaluation of the available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income, among other items. The Company's evaluation of the available evidence was significantly influenced by the fact that the Company was in a positive cumulative earnings position for the three year period ended December 31, 2015. The Company recorded a net tax benefit of $2,385 in 2015 due to the release of a portion of its valuation allowance. The remaining valuation allowance as of December 31, 2015, was associated with capital loss carryforwards. The Company determined that utilization of this tax attribute was not more likely than not as of December 31, 2015. As of December 31, 2016, the Company’s total valuation allowance was $726 relating primarily to capital loss carryovers. Capital loss carryovers remaining as of December 31, 2016 will expire between 2018 and 2020 if not utilized. During 2016, the Company determined that it was not more likely than not that it would realize a portion of its deferred tax assets. Substantially all of the 2016 reduction in the valuation allowance represents capital loss carryovers that expired unused at the end of 2016. The related deferred tax asset and valuation allowance associated with expired capital losses were eliminated as of December 31, 2016. As of December 31, 2016, the Company had $23,074 in gross state net operating loss carryforwards. As of December 31, 2015, the Company had approximately $45,900 in state net operating loss carryforwards. Due to varying state carryforward periods, the state net operating loss carryforwards will expire in varying periods between calendar years 2017 and 2036. The Company has gross state tax credit carryforwards of $4,929 as of December 31, 2016 and $4,081 as of December 31, 2015. State credit carryforwards, if not used to offset income tax expense in their respective jurisdictions, will expire in varying periods between calendar years 2020 and 2031. The Company treats accrued interest and penalties related to tax liabilities, if any, as a component of income tax expense. During 2016, 2015, and 2014, the Company’s activity in accrued interest and penalties was not significant. The following is a reconciliation of the total amount of unrecognized tax benefits (excluding interest and penalties) for 2016, 2015, and 2014:
| Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Beginning of year balance | $ | 613 |  |  | $ | 613 |  |  | $ | 566 |
Additions for tax positions of prior years | 2 |  |  | — |  |  | 8 |
Additions for tax positions of the current year | 21 |  |  | — |  |  | 39 |
Reduction for prior year tax positions | (48 | ) |  | — |  |  | — |
Reductions for settlements | (545 | ) |  |  |  |
End of year balance | $ | 43 |  |  | $ | 613 |  |  | $ | 613 |
During the fourth quarter of 2016, the Company reached a settlement with the Internal Revenue Service (“IRS”) with respect to a 2013 federal income tax examination. In connection with this examination, the IRS reviewed certain items open to review from prior tax years. No cash was paid to settle the examination. The Company recorded a tax benefit of $545 relating to the settlement. No significant amounts of accrued interest or penalties were impacted by the settlement. The Company is subject to examination for its state tax returns for years 2013 and forward, with the exception of certain net operating losses and credit carryforwards originating in years prior to 2013 that remain subject to adjustment. For each period presented, substantially all of the amount of unrecognized benefits (excluding interest and penalties) would impact the effective tax rate, if recognized. The Company reasonably expects that the amount of unrecognized tax benefit will not decrease by significant amount in the next 12 months.

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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