XML 39 R26.htm IDEA: XBRL DOCUMENT
v3.22.4

Note 17 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
17. | INCOME TAXES:
The United States and foreign components of Income before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
United States |  | $ | 40,271 |  |  | $ | 14,000 |  |  | $ | 24,768 |
Foreign |  |  | 1,079 |  |  |  | 1,158 |  |  |  | 866 |
Total |  | $ | 41,350 |  |  | $ | 15,158 |  |  | $ | 25,634 |
The components of Income tax expense are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,443 |  |  | $ | 2,256 |  |  | $ | 958 |
State |  |  | 1,264 |  |  |  | 1,064 |  |  |  | 1,342 |
Foreign |  |  | 198 |  |  |  | 213 |  |  |  | 243 |
Total current income tax expense |  |  | 9,905 |  |  |  | 3,533 |  |  |  | 2,543 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (22 | ) |  |  | 573 |  |  |  | 4,380 |
State |  |  | 340 |  |  |  | (464 | ) |  |  | (386 | )
Foreign |  |  | (22 | ) |  |  | (7 | ) |  |  | 47 |
Total deferred income tax expense |  |  | 296 |  |  |  | 102 |  |  |  | 4,041 |
Total income tax expense |  | $ | 10,201 |  |  | $ | 3,635 |  |  | $ | 6,584 |
The difference between the Company’s effective income tax rate and the federal statutory income tax rate is explained as follows (dollar amounts in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Income tax expense at federal statutory rate |  | $ | 8,683 |  |  | $ | 3,183 |  |  | $ | 5,383 |
State expense, net of federal income tax effect |  |  | 1,463 |  |  |  | 547 |  |  |  | 953 |
Change in valuation allowance |  |  | (1 | ) |  |  | (247 | ) |  |  | (181 | )
Nondeductible expenses |  |  | (35 | ) |  |  | (31 | ) |  |  | 447 |
Foreign rate differential |  |  | 97 |  |  |  | 104 |  |  |  | 78 |
Other |  |  | (6 | ) |  |  | 79 |  |  |  | (96 | )
Income tax expense |  | $ | 10,201 |  |  | $ | 3,635 |  |  | $ | 6,584 |
Effective income tax rate |  |  | 24.7 | % |  |  | 24.0 | % |  |  | 25.7 | %
The income tax effect of temporary differences that give rise to significant portions of deferred income tax assets and liabilities is presented below (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Accrued employee benefits |  | $ | 3,840 |  |  | $ | 3,125 |
Inventories |  |  | 350 |  |  |  | 30 |
Trade receivable, net |  |  | 329 |  |  |  | 833 |
Net operating loss carryforwards |  |  | 2,944 |  |  |  | 3,099 |
Tax credit carryforwards |  |  | 2,863 |  |  |  | 2,888 |
Contract assets, net |  |  | 403 |  |  |  | 313 |
Other |  |  | 1,074 |  |  |  | 984 |
|  |  | 11,803 |  |  |  | 11,272 |
Valuation allowance |  |  | (6,051 | ) |  |  | (5,899 | )
|  |  | 5,752 |  |  |  | 5,373 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (13,550 | ) |  |  | (12,937 | )
Intangible assets |  |  | (1,319 | ) |  |  | (1,902 | )
Goodwill |  |  | (606 | ) |  |  | (129 | )
Prepaid expenses |  |  | (1,285 | ) |  |  | (1,005 | )
|  |  | (16,760 | ) |  |  | (15,973 | )
Net deferred income tax liabilities |  | $ | (11,008 | ) |  | $ | (10,600 | )
Amounts are presented in the Consolidated Balance Sheets as follows: |  |  |  |  |  |  |  |
Deferred income tax assets, included in Other assets |  | $ | 394 |  |  | $ | 384 |
Deferred income taxes |  |  | (11,402 | ) |  |  | (10,984 | )
Net deferred income tax liabilities |  | $ | (11,008 | ) |  | $ | (10,600 | )
In assessing the ability to realize deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, taxable income in carryback periods, and tax planning strategies in making this assessment. The Company believes it is more likely than not it will realize the benefits of its deductible differences as of December 31, 2022, net of any valuation allowance. As of December 31, 2022, the Company continues to maintain a valuation allowance on federal tax credits, capital loss carryforwards, and select state jurisdictions. As of December 31, 2022, the Company had approximately $0.4 million of federal income tax credit carryforwards, which expire on various dates between 2023 and 2026, and $0.8 million of capital loss carryforwards, which expire in 2023. As of December 31, 2022, the Company also had approximately $18.4 million of state net operating loss carryforwards, which expire on various dates between 2022 and 2038, and state income tax credit carryforwards of $4.4 million, which began to expire in 2022. As of December 31, 2022, the Company also had approximately $6.0 million of foreign net operating loss carryforwards, which expire on various dates between 2023 and 2030. The Company files income tax returns in the United States Federal jurisdiction, in a limited number of foreign jurisdictions, and in many state jurisdictions. With few exceptions, the Company is no longer subject to United States Federal, state, or foreign income tax examinations for years before 2018. A summary of the changes in the unrecognized income tax benefits is presented below (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Unrecognized income tax benefits, beginning of year |  | $ | 4,366 |  |  | $ | 4,350 |  |  | $ | 4,350 |
Increases for positions taken in prior years |  |  | 106 |  |  |  | 16 |  |  |  | - |
Unrecognized income tax benefits, end of year |  | $ | 4,472 |  |  | $ | 4,366 |  |  | $ | 4,350 |
The Company does not believe it is reasonably possible that the total amounts of unrecognized income tax benefits will change in the following twelve months; however, actual results could differ from those currently expected. Effectively all of the unrecognized income tax benefits would affect the Company’s effective income tax rate if recognized at some point in the future. The Company recognizes interest and penalties related to uncertain income tax positions in Income tax expense. As of December 31, 2022 and 2021, the Company had $0.1 million and approximately $0, respectively, of accrued interest related to uncertain income tax positions. Total interest for uncertain income tax positions did not change materially in 2022, 2021, or 2020.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration