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Note 12 - Income Taxes
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
12.
Income Taxes:
 
The components of the Company’s provision (benefit) for income taxes from continuing operations were as follows:
 
 
 
As of December 31,
 
(in thousands)
 
2016
 
 
2015
 
 
2014
 
Current:
                        
Federal
   $
2,563
    $
(149
 )   $
4,859
 
State and local
    
929
     
(752
 )    
657
 
     
3,492
     
(901
 )    
5,516
 
Deferred
    
(1,994
 )    
(5,916
 )    
(2,566
 )
Income tax provision (benefit)
   $
1,498
    $
(6,817
 )   $
2,950
 
 
The components of the Company’s deferred income taxes at
December
31
are as follows:
 
(in thousands)
 
2016
 
 
2015
 
Deferred tax assets:
                
Inventory (excluding LIFO reserve)
   $
2,531
    $
2,986
 
Net operating loss and tax credit carryforwards
    
3,224
     
2,926
 
Allowance for doubtful accounts
    
533
     
500
 
Accrued expenses
    
7,228
     
7,311
 
Other
    
169
     
143
 
     
13,685
     
13,866
 
Valuation reserve
    
(2,017
 )    
(1,030
 )
Total deferred tax assets
    
11,668
     
12,836
 
                 
Deferred tax liabilities:
                
LIFO reserve
    
(5,874
 )    
(6,018
 )
Property and equipment
    
(19,846
 )    
(22,535
 )
Intangibles
    
(9,067
 )    
(9,396
 )
Total deferred tax liabilities
    
(34,787
 )    
(37,949
 )
Deferred tax liabilities, net
   $
(23,119
 )   $
(25,113
 )
 
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:
 
(in thousands)
 
2016
 
 
2015
 
 
2014
 
Balance as of January 1
   $
38
    $
58
    $
75
 
Decreases related to prior year tax positions
    
-
     
(20
 )    
(17
 )
Increases related to current year tax positions
    
13
     
13
     
13
 
Decreases related to lapsing of statute of limitations
    
(13
 )    
(13
 )    
(13
 )
Balance as of December 31
   $
38
    $
38
    $
58
 
 
It is expected that the amount of unrecognized tax benefits will not materially change in the next
twelve
months. The tax years
2013
through
2015
remain open to examination by major taxing jurisdictions to which the Company is subject.
 
The Company recognized interest related to uncertain tax positions in income tax expense.
 
The following table reconciles the U.S. federal statutory rate to the Company’s effective tax rate:
 
 
 
2016
 
  
2015
 
 
2014
 
U.S. federal statutory rate
    
35.0%
      
35.0%
      
35.0%
  
State and local taxes, net of federal benefit
    
11.8%
      
1.4%
      
(1.6%
 )
Valuation allowance
    
205.4%
      
0.0%
      
0.0%
  
Goodwill impairment
    
0.0%
      
(17.1%
 )    
(51.8%
 )
All other, net
    
104.4%
      
1.0%
      
0.1%
  
Effective income tax rate
    
356.6%
      
20.3%
      
(18.3%
 )
 
The Company's effective tax rate is disproportionately high in
2016
from comparative periods due to low income before taxes relative to items that impact the effective tax rate.  Other differences reflect permanent differences of
$0.8
million offset by credits and manufacturing deductions of
$0.3
million.  During
2016,
the Company recorded a valuation allowance of
$0.9
million to reduce certain state deferred tax assets to the amount that is more likely than not to be realized.
 
Income taxes paid in
2016,
2015
and
2014
totaled
$1.0
million,
$0.6
million and
$4.7
million, respectively. Some subsidiaries of the Company’s consolidated group file state tax returns on a separate company basis and have state net operating loss carryforwards expiring over the next
seven
to
20
years. A valuation allowance is recorded to reduce certain deferred tax assets to the amount that is more likely than not to be realized.