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Income taxes
 12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
Note 10 - Income taxes

The provision for income taxes consists of the following:

 

   

For the Years Ended

December 31,

  
    2015     2014     2013  
Current:                  
Federal   $ 1,888     $ 2,143     $ 2,552  
State and local     717       819       554  
Total current     2,605       2,962       3,106  
Deferred     (585 )     (720 )     (239 )
Provision for income taxes   $ 2,020     $ 2,242     $ 2,867  

 

 

A reconciliation of the U.S. federal statutory rate to the effective tax rate used in the provision for income taxes is as follows:

 

    2015     2014     2013  
    Amount     Percentage     Amount     Percentage     Amount     Percentage  
Federal income tax expense computed at the statutory rate   $ 1,357       34.0 %   $ 1,428       34.0 %   $ 2,666       34.0 %
State and local tax expense, net     337       8.4 %     215       5.1 %     745       9.5 %
U.S. domestic manufacturers' deduction & other permanent differences     300       7.5 %     464       11.0 %     (455 )     (5.8 )%
Additions for tax positions of prior years     50       1.3 %     215       5.1 %     0       0 %
Change in tax rates     --       0 %     (138 )     (3.2 )%     0       0 %
Change in tax estimate      (24 )      (0.6 )%     59       1.4 %     (89 )     (1.1 )%
Provision for income taxes   $ 2,020       50.6 %   $ 2,242       53.4 %   $ 2,867       36.6 %

 

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

    2015     2014     2013  
Balance at January 1   $ 215     $ --     $ --  
Additions for tax positions of prior years     50       215       --  
Balance at December 31   $ 265     $ 215     $ --  

 

 

The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses.

 

The amount of interest and penalties recognized in the consolidated statements of income and comprehensive income was approximately $--, $65, and $-during 2015, 2014 and 2013 respectively. The amount of interest and penalties recognized in the consolidated balance sheets was approximately $65 at December 31, 2015 and 2014, respectively.

 

Amounts for deferred tax assets and liabilities are as follows:

 

    December 31,  
    2015     2014     2013  
Non-current deferred tax assets (liabilities) arising from:                  
                   
Accumulated depreciation and amortization   $ (1,719 )   $ (2,074 )   $ (2,896 )
Capital loss carry-forwards     --       --       53  
Total non-current net deferred tax liabilities     (1,719 )     (2,074 )     (2,843 )
Current deferred tax assets arising from:                        
Capital loss carry-forward & investment impairment     164       9       --  
Unrealized losses (gain) on investments     45       127       (8 )
Inventory     308       233       308  
Allowances for doubtful accounts and discounts     39       39       22  
Total current deferred tax assets     556       408       322  
Net deferred tax liability   $ (1,163 )   $ (1,666 )   $ (2,521 )