XML 41 R27.htm IDEA: XBRL DOCUMENT v3.24.0.1
Note 17 - Income Taxes
 12 Months Ended
Dec. 31, 2023
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,

 
  

2023

  

2022

  

2021

 
             

United States

 $27,814  $40,271  $14,000 

Foreign

  1,465   1,079   1,158 

Total

 $29,279  $41,350  $15,158 

 

The components of Income tax expense are as follows (in thousands):

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Current:

            

Federal

 $6,817  $8,443  $2,256 

State

  1,519   1,264   1,064 

Foreign

  289   198   213 

Total current income tax expense

  8,625   9,905   3,533 

Deferred:

            

Federal

  (612)  (22)  573 

State

  195   340   (464)

Foreign

  (1)  (22)  (7)

Total deferred income tax expense (benefit)

  (418)  296   102 

Total income tax expense

 $8,207  $10,201  $3,635 

 

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,

 
  

2023

  

2022

  

2021

 
             

Income tax expense at federal statutory rate

 $6,148  $8,683  $3,183 

State expense, net of federal income tax effect

  942   1,463   547 

Change in valuation allowance

  (30)  (1)  (247)

Nondeductible expenses

  257   (35)  (31)

Foreign rate differential

  133   97   104 

Accrued interest on uncertain income tax positions

  264   106   16 

State franchise tax

  250   110   92 

Other

  243   (222)  (29)

Income tax expense

 $8,207  $10,201  $3,635 

Effective income tax rate

  28.0

%

  24.7

%

  24.0

%

 

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,

 
  

2023

  

2022

 

Deferred income tax assets:

        

Accrued employee benefits

 $3,096  $3,840 

Inventories

  380   350 

Trade receivable, net

  532   329 

Net operating loss carryforwards

  3,429   2,944 

Tax credit carryforwards

  2,777   2,863 

Contract assets, net

  934   403 

Other

  1,952   1,074 
   13,100   11,803 

Valuation allowance

  (6,641)  (6,051)
   6,459   5,752 

Deferred income tax liabilities:

        

Property and equipment

  (13,850)  (13,550)

Intangible assets

  (800)  (1,319)

Goodwill

  (1,164)  (606)

Prepaid expenses

  (1,217)  (1,285)
   (17,031)  (16,760)
         

Net deferred income tax liabilities

 $(10,572) $(11,008)
         

Amounts are presented in the Consolidated Balance Sheets as follows:

        

Deferred income tax assets, included in Other assets

 $370  $394 

Deferred income taxes

  (10,942)  (11,402)

Net deferred income tax liabilities

 $(10,572) $(11,008)

 

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, 2023, net of any valuation allowance. As of December 31, 2023, the Company continues to maintain a valuation allowance on federal tax credits and select state jurisdictions.

 

As of December 31, 2023, the Company had approximately $0.3 million of federal income tax credit carryforwards, which expire on various dates between 2024 and 2026. As of December 31, 2023, the Company also had approximately $18.4 million of state net operating loss carryforwards, which expire on various dates between 2024 and 2036, and state income tax credit carryforwards of $4.4 million, which began to expire in 2023. As of December 31, 2023, the Company also had approximately $8.4 million of foreign net operating loss carryforwards, which expire on various dates between 2024 and 2033.

 

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 2019.

 

A summary of the changes in the unrecognized income tax benefits is presented below (in thousands):

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 
             

Unrecognized income tax benefits, beginning of year

 $4,472  $4,366  $4,350 

Increases for positions taken in prior years

  264   106   16 

Unrecognized income tax benefits, end of year

 $4,736  $4,472  $4,366 

 

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, 2023 and 2022, the Company had $0.4 million and $0.1 million, respectively, of accrued interest related to uncertain income tax positions. Total interest for uncertain income tax positions did not change materially in 2023, 2022, or 2021.