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Income taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income taxes | Note 6 - Income taxes Income tax expense for the years ended December 31, 2017, 2016 and 2015 was $0.8 million, $6.6 million and $2.9 million, respectively. The income tax expense for each of the years ended December 31, 2017, 2016 and 2015 was for federal and state income tax at statutory rates applied to the adjusted pre-tax income for each of the periods. The following summarizes the (benefit) / provision for income taxes:
Years Ended December 31, |  | 2017 |  | 2016 |  | 2015 |
(in thousands) |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (3,690) |  | $ | 4,981 |  | $ | 174 |
State and local |  |  | 532 |  |  | 567 |  |  | 2 |
|  |  | (3,158) |  |  | 5,548 |  |  | 176 |
Deferred: |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,293 |  |  | 949 |  |  | 2,460 |
State and local |  |  | (288) |  |  | 131 |  |  | 308 |
|  |  | 4,005 |  |  | 1,080 |  |  | 2,768 |
Expense for income taxes |  | $ | 847 |  | $ | 6,628 |  | $ | 2,944 |
Reconciliation of the Company's actual tax rate to the U.S. Federal statutory rate is as follows:
Years ended December 31, |  | 2017 |  | 2016 |  | 2015 |
Income tax rates |  |  |  |  |  |  |  |  |  |
- Statutory U.S. federal rate |  |  | 35 | % |  | 35 | % |  | 34 | %
- State income taxes, net of federal benefit |  |  | 4 | % |  | 3 | % |  | 4 | %
- Excess tax benefits related to stock compensation |  |  | (20) | % |  | — |  |  | — |
- Effect of 2017 Tax Act |  |  | (12) | % |  | — |  |  | — |
Total |  |  | 7 | % |  | 38 | % |  | 38 | %
As of December 31, 2017, the Company had NOLs of approximately $5.4 million expiring through 2024, $4.1 million of which are subject to annual limitations of approximately $1.3 million. As of December 31, 2017, the company had state tax NOLs of approximately $2.6 million expiring in various years. Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. The net deferred income tax assets (liabilities) consisted of the following at:
December 31, |  | 2017 |  | 2016 |
(in thousands) |  |  |  |  |  |  |
- Depreciation &; amortization |  | $ | (3,665) |  | $ | (236) |
- Reserves for doubtful accounts |  |  | 115 |  |  | 139 |
- Inventory reserve |  |  | 218 |  |  | 304 |
- Non qualified stock options |  |  | 409 |  |  | 247 |
- Net operating losses |  |  | 1,450 |  |  | 2,078 |
Total |  | $ | (1,473) |  | $ | 2,532 |
The Company considered its projected future taxable income, and associated annual limitations, in determining the amount of deferred tax assets to recognize. The Company believes that given the extended time period that it may recognize its deferred tax assets, it is more likely than not it will realize the benefit of these assets prior to their expiration. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“2017 Tax Act”), which lowered the federal statutory income tax rate from, generally, 35% to 21% for tax years beginning after December 31, 2017. As a result of the enactment of the 2017 Tax Act, the Company recorded a benefit of approximately $1.4 million during the fourth quarter of 2017 to reflect the net impact of lower future federal income tax rates on the NOLs and the other cumulative differences in financial reporting and tax bases assets and liabilities, which were, primarily, fixed assets and accumulated depreciation. As a result of an Internal Revenue Service audit, the 2013 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2017, the various states’ statutes of limitations remain open for tax years subsequent to 2010. The Company recognizes interest and penalties, if any, relating to income taxes as a component of the provision for income taxes. The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2017 and 2016, the Company had no uncertain tax positions.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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