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Note 14 - Income Taxes
 12 Months Ended
Dec. 31, 2024
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)

 

2024

  

2023

  

2022

 

Current:

            

Federal

 $7,669  $11,574  $27,865 

International

  29   1,047   102 

State and local

  1,138   2,529   5,691 
   8,836   15,150   33,658 

Deferred

  (511)  1,908   (967)

Income tax provision

 $8,325  $17,058  $32,691 

 

The components of the Company’s deferred income taxes at December 31 are as follows:

 

(in thousands)

 

2024

  

2023

 

Deferred tax assets:

        

Inventory (excluding LIFO reserve)

 $2,980  $3,340 

Net operating loss and tax credit carryforwards

  896   803 

Allowance for credit losses

  452   657 

Accrued expenses

  8,865   7,543 

Lease liabilities

  10,090   9,567 

Other

  312   379 

Deferred tax assets before valuation allowance

  23,595   22,289 

Valuation allowance

  (446)  (489)

Total deferred tax assets

  23,149   21,800 
         

Deferred tax liabilities:

        

LIFO reserve

  (3,429)  (3,820)

Property and equipment

  (16,058)  (16,223)

Lease right of use assets

  (9,848)  (9,363)

Interest rate hedge

  (63)  (14)

Intangibles

  (4,800)  (3,890)

Total deferred tax liabilities

  (34,198)  (33,310)

Deferred tax liabilities, net

 $(11,049) $(11,510)

 

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:

 

(in thousands)

 

2024

  

2023

  

2022

 

Balance as of January 1

 $174  $220  $228 

Increases related to current year tax positions

  -   -   - 

Increase (Decrease) related to prior year tax positions

  173   8   (8)

Decreases related to lapsing of statute of limitations

  (55)  (8)  - 

Settlements

  -   (46)  - 

Balance as of December 31

 $292  $174  $220 

 

It is expected that the amount of unrecognized tax benefits will not materially change in the next twelve months. The tax years 2021 through 2023 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:

 

  

2024

  

2023

  

2022

 

U.S. federal statutory rate in effect

  21.0%  21.0%  21.0%

State and local taxes, net of federal benefit

  4.3%  4.4%  4.5%

Foreign

  0.1%  1.7%  0.1%

Meals and entertainment

  1.5%  0.7%  0.2%

Tax credits

  (0.8)%  (0.4)%  (0.1)%

All other, net

  0.5%  0.3%  0.7%

Effective income tax rate

  26.6%  27.7%  26.4%

 

Income taxes paid in 2024, 2023 and 2022 totaled $10.0 million, $13.6 million and $33.4 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 15 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, 2024 and 2023 were related to certain state net operating losses and totaled $0.4 million and $0.5 million, respectively.