XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 12 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
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) |  | 201 7 |  |  | 201 6 |  |  | 201 5 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,695 |  |  | $ | 2,563 |  |  | $ | (149 | )
State and local |  |  | 666 |  |  |  | 929 |  |  |  | (752 | )
|  |  | 8,361 |  |  |  | 3,492 |  |  |  | (901 | )
Deferred |  |  | (10,974 | ) |  |  | (1,994 | ) |  |  | (5,916 | )
Income tax provision (benefit) |  | $ | (2,613 | ) |  | $ | 1,498 |  |  | $ | (6,817 | )
T he components of the Company’s deferred income taxes at December 31 are as follows:
(in thousands ) |  | 201 7 |  |  | 201 6 |
Deferred tax assets : |  |  |  |  |  |  |  |
Inventory (excluding LIFO reserve ) |  | $ | 1,690 |  |  | $ | 2,531 |
Net operating loss and tax credit carryforward s |  |  | 3,520 |  |  |  | 3,224 |
Allowance for doubtful account s |  |  | 419 |  |  |  | 533 |
Accrued expense s |  |  | 5,684 |  |  |  | 7,228 |
Othe r |  |  | 143 |  |  |  | 169 |
Deferred tax assets before valuation allowanc e |  |  | 11,456 |  |  |  | 13,685 |
Valuation allowanc e |  |  | (2,379 | ) |  |  | (2,017 | )
Total deferred tax asset s |  |  | 9,077 |  |  |  | 11,668 |
Deferred tax liabilities : |  |  |  |  |  |  |  |
LIFO reserv e |  |  | (3,958 | ) |  |  | (5,874 | )
Property and equipmen t |  |  | (11,363 | ) |  |  | (19,846 | )
Intangible s |  |  | (5,901 | ) |  |  | (9,067 | )
Total deferred tax liabilitie s |  |  | (21,222 | ) |  |  | (34,787 | )
Deferred tax liabilities, ne t |  | $ | (12,145 | ) |  | $ | (23,119 | )
The following table summarizes the activity related to the Company ’s gross unrecognized tax benefits:
(in thousands ) |  | 201 7 |  |  | 201 6 |  |  | 201 5 |
Balance as of January 1 |  | $ | 38 |  |  | $ | 38 |  |  | $ | 58 |
Decreases related to prior year tax positions |  |  | - |  |  |  | - |  |  |  | (20 | )
Increases related to current year tax positions |  |  | 15 |  |  |  | 13 |  |  |  | 13 |
Decreases related to lapsing of statute of limitations |  |  | (13 | ) |  |  | (13 | ) |  |  | (13 | )
Balance as of December 31 |  | $ | 40 |  |  | $ | 38 |  |  | $ | 38 |
It is expected that the amount of unrecognized tax benefits will not materially change in the next twelve months. The tax years 20 14 through 2016 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:
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
U.S. federal statutory rate in effect |  |  | 35.0% |  |  |  | 35.0% |  |  |  | 35.0% |
State and local taxes, net of federal benefit |  |  | 3.6% |  |  |  | 11.8% |  |  |  | 1.4% |
Sec. 199 manufacturing deduction |  |  | (3.8% | ) |  |  | (33.6% | ) |  |  | 0.0% |
Meals and entertainment |  |  | 1.8% |  |  |  | 64.3% |  |  |  | (0.6% | )
Tax credits |  |  | (1.3% | ) |  |  | (48.7% | ) |  |  | 0.4% |
Change in valuation allowance |  |  | 0.6% |  |  |  | 205.4% |  |  |  | 0.0% |
Change in U.S. federal statutory rate |  |  | (37.7% | ) |  |  | 0.0% |  |  |  | 0.0% |
Change in tax affect of SERP |  |  | (11.4% | ) |  |  | 0.0% |  |  |  | 0.0% |
Goodwill impairment |  |  | 0.0% |  |  |  | 0.0% |  |  |  | (17.1% | )
All other, net |  |  | (2.8% | ) |  |  | 122.4% |  |  |  | 1.2% |
Effective income tax rate |  |  | (16.0% | ) |  |  | 356.6% |  |  |  | 20.3% |
In 2017, the Company made an out-of-period adjustment to correct and record previously unrecognized deferred tax assets, and the associated tax benefit, related to a portion of the SERP that had previously been considered non-deductible under Section 162 (m) limitations in prior years. Due to the mandatory waiting period of six months prior to any SERP payment distribution, in 2017 the Company determined that the Section 162 (m) non-deductibility limitations did not apply. The adjustment, which had accumulated since the inception of the SERP in 2005, resulted in an increase to after-tax income of $1.9 million in 2017. The Company determined that this adjustment was not material to its current or prior period consolidated financial statements. On December 22, 2017, the President of the United States signed into law the Tax Act. The Tax Act, among other things, lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. Consequently, the Company decreased its net deferred tax liability as of December 31, 2017 by $6.2 million resulting in an income tax benefit to reflect the estimated impact of the Tax Act. Based on the Company’s predominantly U.S. based operational footprint, additional international and minimum tax provisions under the Tax Act, including the one -time transition tax for the transition from the worldwide system to the territorial system, are not applicable, or would not be material to the Company. The Company believes the calculation of the impact as a result of the reduced U.S. corporate income tax rate is complete except for changes in estimates that can result from finalizing the filing of its 2017 U.S. income tax return, which are not anticipated to be material, and changes that may be a direct impact of other provisional amounts recorded due to the enactment of the Tax Act. While the Company has substantially completed its analysis of the income tax effects of the Tax Act and recorded a reasonable estimate of such effects, certain items related to the Tax Act may differ, possibly materially, due to further refinement of the calculations, changes in interpretations and assumptions made, additional guidance that may be issued by the U.S. government, and actions related to accounting policy decisions the Company may make as a result of the Tax Act. The Company will complete its analysis of these items over a one -year measurement period ending December 22, 2018, and any adjustment provided by the SEC under SAB 118 during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense (benefit) in the reporting period when such adjustments are determined. The Company's effective tax rate was disproportionately high in 2016 from comparative periods due to low income before taxes relative to items that impact the effective tax rate. 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 t axes paid in 2017, 2016 and 2015 totaled $9.4 million, $1.0 million and $0.6 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.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration