XML 31 R14.htm IDEA: XBRL DOCUMENT
v3.20.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense is composed of the following:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 10,825 |  |  | $ | 6,426 |  |  | $ | 8,844 |
State | 1,291 |  |  | 412 |  |  | 1,317 |
| 12,116 |  |  | 6,838 |  |  | 10,161 |
Deferred: |  |  |  |  |
Federal | (302) |  |  | 352 |  |  | 55 |
State | 442 |  |  | (46) |  |  | 1,480 |
| 140 |  |  | 306 |  |  | 1,535 |
Total | $ | 12,256 |  |  | $ | 7,144 |  |  | $ | 11,696 |
Income tax expense also included tax expense allocated to comprehensive income for 2020, 2019, and 2018 of $229, $14, and $73, respectively (see the Consolidated Statements of Comprehensive Income). In response to COVID-19, President Donald Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") on March 27, 2020. The CARES Act along with other guidance issued by the IRS provides for numerous tax provisions and other stimulus measures, including temporary suspension of certain payment requirements for the employer portion of Social Security taxes, deferral of income tax payments until July 15, 2020, and technical corrections from prior tax legislation. The Company is in the process of monetizing certain parts of the CARES Act and continues to monitor tax legislation for additional potential benefits available to the Company. In addition, President Trump signed a second COVID-19 stimulus bill, the Coronavirus Relief and Government Funding Act, on December 27, 2020. The Company is in the process of reviewing that legislation. As of December 31, 2020, to the extent applicable, MGP has reflected both stimulus packages in its consolidated financial statements. A reconciliation of income tax expense at the normal statutory federal rate to income tax expense included in the accompanying Consolidated Statements of Income is below:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
"Expected" provision at federal statutory rate | $ | 11,046 |  |  | $ | 9,654 |  |  | $ | 10,286 |
State income taxes, net | 2,408 |  |  | 1,540 |  |  | 2,029 |
Change in valuation allowance | (422) |  |  | (168) |  |  | 1,304 |
Share-based compensation | 56 |  |  | (2,877) |  |  | (1,201) |
Compensation limits | 125 |  |  | 148 |  |  | — |
Federal and state tax credits | (1,035) |  |  | (1,302) |  |  | (807) |
Other | 78 |  |  | 149 |  |  | 85 |
Income tax expense | $ | 12,256 |  |  | $ | 7,144 |  |  | $ | 11,696 |
Effective tax rate | 23.3 | % |  | 15.6 | % |  | 23.9 | %
The tax effects of temporary differences giving rise to deferred income taxes shown on the Consolidated Balance Sheets are as follows:
| December 31,
| 2020 |  | 2019
Deferred income tax assets: |  |  |
Post-retirement liability | $ | 446 |  |  | $ | 717 |
Deferred income | 250 |  |  | 300 |
Share-based compensation | 2,123 |  |  | 1,238 |
Capital loss carryforwards | — |  |  | 91 |
State tax credit carryforwards | 2,986 |  |  | 3,198 |
State operating loss carryforwards | 1,264 |  |  | 1,529 |
Inventories | 2,077 |  |  | 1,738 |
Operating lease liabilities | 1,322 |  |  | 1,582 |
Deferred compensation | 1,250 |  |  | — |
Other | 1,036 |  |  | 1,291 |
Gross deferred income tax assets | 12,754 |  |  | 11,684 |
Less: valuation allowance | (862) |  |  | (1,284) |
Net deferred income tax assets | 11,892 |  |  | 10,400 |
Deferred income tax liabilities: |  |  |
Fixed assets | (12,205) |  |  | (10,332) |
Operating lease right-of-use assets | (1,318) |  |  | (1,577) |
Other | (667) |  |  | (420) |
Gross deferred income tax liabilities | (14,190) |  |  | (12,329) |
Net deferred income tax liability | $ | (2,298) |  |  | $ | (1,929) |
A schedule of the change in valuation allowance is as follows:
Balance at December 31, 2018 | $ | 1,452 |
Decrease | (168) |
Balance at December 31, 2019 | 1,284 |
Decrease | (422) |
Balance at December 31, 2020 | $ | 862 |
As of December 31, 2020, the Company’s total valuation allowance of $862 related to net operating loss carryforwards and certain tax credits in states in which it is not "more likely than not" to create enough state taxable income to fully utilize the carryforwards before expiration of the carryforward periods. As of December 31, 2019, the Company’s total valuation allowance of $1,284 related to net operating loss carryforwards in states in which it is not "more likely than not" to create enough state taxable income to fully utilize the carryforwards before expiration of the carryforward periods, and capital loss carryforwards that the Company is not "more likely than not" to use before they expire. The reduction of the valuation allowance year-over-year is due to certain capital loss carryforwards and the corresponding deferred tax asset and related valuation allowance expiring at the end of 2020, and the reduction of the valuation allowance related to certain state tax attributes. As of December 31, 2020 and 2019, the Company had $18,697 and $21,918 in gross state net operating loss carryforwards, respectively. Due to varying state carryforward periods, the state net operating loss carryforwards will expire in varying years between calendar years 2021 and 2040. As of December 31, 2020 and 2019, the Company had gross state tax credit carryforwards of $3,778 and $4,049, respectively. State credits, if not used to offset income tax expense in their respective jurisdictions, will expire in varying years between 2021 and 2036. The Company treats accrued interest and penalties related to tax liabilities, if any, as a component of income tax expense. During 2020, 2019, and 2018, 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 2020, 2019, and 2018:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018 |  |
Beginning of year balance | $ | 255 |  |  | $ | 193 |  |  | $ | 185 |  |  |
Additions based on prior year tax positions | 2 |  |  | 3 |  |  | 2 |  |  |
Additions based on current year tax positions | 20 |  |  | 78 |  |  | 11 |  |  |
Reduction for prior year tax positions | — |  |  | (19) |  |  | (5) |  |  |
Reductions for settlements | (165) |  |  | — |  |  | — |  |  |
End of year balance | $ | 112 |  |  | $ | 255 |  |  | $ | 193 |  |  |
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 change significantly over the next 12 months. The Company completed an audit of federal income tax audit for tax year 2016, without significant findings. For federal tax purpose, all tax years after 2016 remain open to adjustment. The Company is subject to examination for its state tax returns for years 2016, and forward, with the exception of certain net operating losses and credit carryforwards originating in years prior to 2016 that remain subject to adjustment.

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration