XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.20.4

Note 14 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
14. | 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) |  | 2020 |  |  | 2019 |  |  | 2018 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 321 |  |  | $ | 1,747 |  |  | $ | 9,188 |
International |  |  | 103 |  |  |  | 107 |  |  |  | - |
State and local |  |  | 59 |  |  |  | 22 |  |  |  | 1,797 |
|  |  | 483 |  |  |  | 1,876 |  |  |  | 10,985 |
Deferred |  |  | (1,799 | ) |  |  | (443 | ) |  |  | 1,320 |
Income tax provision (benefit) |  | $ | (1,316 | ) |  | $ | 1,433 |  |  | $ | 12,305 |
The components of the Company’s deferred income taxes at December 31 are as follows:
(in thousands) |  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Inventory (excluding LIFO reserve) |  | $ | 1,529 |  |  | $ | 1,353 |
Net operating loss and tax credit carryforwards |  |  | 3,510 |  |  |  | 3,198 |
Allowance for credit losses |  |  | 440 |  |  |  | 513 |
Accrued expenses |  |  | 5,778 |  |  |  | 5,486 |
Lease liabilities |  |  | 7,348 |  |  |  | 6,718 |
Interest rate hedge |  |  | 1,405 |  |  |  | 760 |
Other |  |  | 390 |  |  |  | 237 |
Deferred tax assets before valuation allowance |  |  | 20,400 |  |  |  | 18,265 |
Valuation allowance |  |  | (2,302 | ) |  |  | (2,215 | )
Total deferred tax assets |  |  | 18,098 |  |  |  | 16,050 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
LIFO reserve |  |  | (3,528 | ) |  |  | (3,646 | )
Property and equipment |  |  | (13,562 | ) |  |  | (13,250 | )
Lease right of use assets |  |  | (7,294 | ) |  |  | (6,718 | )
Intangibles |  |  | (3,532 | ) |  |  | (4,698 | )
Total deferred tax liabilities |  |  | (27,916 | ) |  |  | (28,312 | )
Deferred tax liabilities, net |  | $ | (9,818 | ) |  | $ | (12,262 | )
The deferred tax liability decreased by $645 thousand related to the fixed interest rate hedge, which is recorded in “Other Comprehensive Income (Loss)” in the Consolidated Statements of Comprehensive Income (Loss). The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Balance as of January 1 |  | $ | 28 |  |  | $ | 27 |  |  | $ | 40 |
Change in tax due to tax law |  |  | - |  |  |  | - |  |  |  | (12 | )
Increases related to current year tax positions |  |  | 8 |  |  |  | 10 |  |  |  | 9 |
Decreases related to lapsing of statute of limitations |  |  | (8 | ) |  |  | (9 | ) |  |  | (10 | )
Balance as of December 31 |  | $ | 28 |  |  | $ | 28 |  |  | $ | 27 |
It is expected that the amount of unrecognized tax benefits will not materially change in the next twelve months. The tax years 2017 through 2019 remain open to examination by major taxing jurisdictions to which the Company is subject. The Company recognized interest related to uncertain tax positions in the income tax provision. The following table reconciles the U.S. federal statutory rate to the Company’s effective tax rate:
|  | 2020 |  |  | 2019 |  |  | 2018 |
U.S. federal statutory rate in effect |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State and local taxes, net of federal benefit |  |  | 1.0 | % |  |  | 3.7 | % |  |  | 4.6 | %
Meals and entertainment |  |  | (1.8 | )% |  |  | 5.8 | % |  |  | 0.6 | %
Tax credits |  |  | 2.0 | % |  |  | (4.2 | )% |  |  | (0.6 | )%
Stock based compensation |  |  | (3.4 | )% |  |  | - |  |  |  | - |
All other, net |  |  | 0.2 | % |  |  | 0.8 | % |  |  | 1.1 | %
Effective income tax rate |  |  | 19.0 | % |  |  | 27.1 | % |  |  | 26.7 | %
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. The CARES Act, among other items, contains a modification on the limitation of business interest for tax years beginning in 2019 and 2020. The modification to Section 163(j) increases the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. This modification increases the allowable interest expense deduction of the Company and results in less taxable income. As a result of the CARES Act, it is anticipated that the Company will not have any disallowed interest expense in 2020 for federal tax purposes. On December 27, 2020 the Consolidated Appropriations Act of 2021 (“the Appropriations Act”) was signed into law. The Appropriations Act, among other things, includes modifications to the meals and entertainment deduction, increased limitations on charitable deductions for corporate taxpayers, and enhancements of expiring tax “extender” provisions. The Company has completed its assessment of the impact of the legislation, and there is no impact to the Company’s consolidated financial statements. Income taxes paid in 2020, 2019 and 2018 totaled $1 thousand, $0.5 million and $11.3 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 two 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. The valuation allowances recorded as of December 31, 2020 and 2019 were related to certain state net operating losses and totaled $2.3 million and $2.2 million, respectively.

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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration