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10. Income taxes
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income taxes

The provision for income taxes consists of the following:

 

  For the Years Ended December 31, 
   2016   2015 
Current:        
Federal  $2,117   $1,888 
State and local   572    717 
Total current   2,689    2,605 
Deferred   (531)   (585)
Provision for income taxes  $2,158   $2,020 

 

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

 

   2016   2015 
  Amount   Percentage   Amount   Percentage 
Federal income tax expense computed at the statutory rate  $1,917    34.0%   $1,357    34.0% 
State and local tax expense, net   320    5.7%    337    8.4% 
U.S. domestic manufacturers' deduction & other permanent differences   113    2.0%    300    7.5% 
Changes for tax positions of prior years   (202)   (3.5)%   50    1.3% 
Change in tax rates   2    0.0%    –    —% 
Change in tax estimate   8    0.1%    (24)   (0.6)%
Provision for income taxes  $2,158    38.3%   $2,020    50.6% 

 

Amounts for deferred tax assets and liabilities are as follows:

 

   December 31, 
   2016   2015 
Non-current deferred tax assets (liabilities) arising from:          
Accumulated depreciation and amortization  $(1,854)  $(1,719)
Total non-current net deferred tax liabilities   (1,854)   (1,719)
           
Current deferred tax assets arising from:          
Capital loss carry-forward & investment impairment   166    164 
Unrealized losses (gain) on investments   –    45 
Share-based and other compensation   126    – 
Inventory   331    308 
Allowances for doubtful accounts and discounts   39    39 
Total current deferred tax assets   662    556 
Net deferred tax liability  $(1,192)  $(1,163)

 

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

 

   2016   2015 
Balance at January 1  $265   $215 
Additions for tax positions of prior years   63    50 
Release for tax positions of prior years   (265)   – 
Balance at December 31  $63   $265 

 

Periods subject to examination for the Company's federal income tax returns are the 2014 and 2015 tax years. The amount of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate was not significant as of December 31, 2016 and not significant as of December 31, 2015.

 

The amount of interest and penalties recognized in the consolidated statements of income and comprehensive income was approximately $19 and $-- during 2016 and 2015, respectively. The amount of interest and penalties recognized in the consolidated balance sheets was approximately $19 and $65 at December 31, 2016 and 2015, respectively.