XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.3.1.900

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2015
INCOME TAXES |
INCOME TAXES | NOTE 6: INCOME TAXES The following table lists the components of the provision for income taxes:
Years ended December 31, |  | 2015 |  |  | 2014 |  |  | 2013 |
(in thousands) |  |  |  |  |  |  |  |  |
Current provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,056 |  |  | $ | 4,275 |  |  | $ | 2,325 |
State |  |  | 300 |  |  |  | 143 |  |  |  | 99 |
Deferred provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 1,256 |  |  |  | (762 | ) |  |  | 57 |
State |  |  | 53 |  |  |  | (43 | ) |  |  | 21 |
Total income tax provision |  | $ | 6,665 |  |  | $ | 3,613 |  |  | $ | 2,502 |
A reconciliation between the federal graduated statutory rate and Marine Products’ effective tax rate is as follows:
Years ended December 31, |  | 2015 |  |  | 2014 |  |  | 2013 |
Federal statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 34.0 | %
State income taxes, net of federal benefit |  |  | 0.8 |  |  |  | 0.7 |  |  |  | 0.7 |
Research and experimentation credit |  |  | (1.1 | ) |  |  | (2.1 | ) |  |  | (4.9 | )
Tax-exempt interest |  |  | (0.4 | ) |  |  | (1.1 | ) |  |  | (1.4 | )
Tax-exempt gain on SERP assets |  |  | (0.1 | ) |  |  | (0.5 | ) |  |  | (1.2 | )
Manufacturing deduction |  |  | (2.5 | ) |  |  | (3.3 | ) |  |  | (2.7 | )
Change in valuation allowance |  |  | — |  |  |  | — |  |  |  | 0.2 |
Other |  |  | — |  |  |  | 0.1 |  |  |  | 0.2 |
Effective tax rate |  |  | 31.7 | % |  |  | 28.8 | % |  |  | 24.9 | %
Significant components of the Company’s deferred tax assets and liabilities are as follows:
December 31, |  | 2015 |  |  | 2014 |
(in thousands) |  |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Warranty costs |  | $ | 1,209 |  |  | $ | 1,362 |
Sales incentives and discounts |  |  | 547 |  |  |  | 512 |
Stock-based compensation |  |  | 1,061 |  |  |  | 996 |
Pension |  |  | 2,300 |  |  |  | 2,499 |
All others |  |  | 514 |  |  |  | 444 |
State credits and NOL’s |  |  | 4,967 |  |  |  | 4,674 |
Valuation allowance |  |  | (4,694 | ) |  |  | (4,401 | )
Total deferred tax assets |  |  | 5,904 |  |  |  | 6,086 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | (1,062 | ) |  |  | (392 | )
Basis differences in joint venture |  |  | (504 | ) |  |  | — |
Net deferred tax assets |  | $ | 4,338 |  |  | $ | 5,694 |
Total net income tax payments were $5,797,000 in 2015, $3,509,000 in 2014, and $2,600,000 in 2013. As of December 31, 2015 the Company had net operating loss carry forwards related to state income taxes and credits of approximately $20.6 million that will expire between 2016 and 2035. As of December 31, 2015 the Company has a valuation allowance of approximately $4.7 million, representing the tax affected amount of state tax credits and loss carry forwards that the Company does not expect to utilize, against the corresponding deferred tax asset. The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties were immaterial as of December 31, 2015 and 2014. As of December 31, 2015 and 2014, our liability for unrecognized tax benefits was $15,000 and $14,000, respectively, all of which would affect our effective rate if recognized. It is reasonably possible that the amount of the unrecognized benefits with respect to our unrecognized tax positions will increase or decrease in the next 12 months. These changes may be the result of, among other things, state tax settlements under voluntary disclosure agreements. However, quantification of an estimated range cannot be made at this time. The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases our uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. The Company’s 2012 through 2015 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. The Protecting Americans from Tax Hikes Act of 2015 (“PATH”) was signed into law on December 18, 2015 and retroactively reinstated the provisions of the bonus depreciation deduction and the research and experimentation credits (“R&E credits”) for 2015 and future years. As a result of the retroactive extension, the Company’s effective rate for 2015 included a tax benefit due to the combined effect from the bonus depreciation on the manufacturing deduction and the R&E credits attributable to the year. In September 2013, the U.S. Department of the Treasury issued final regulations under Internal Revenue Code Sections 162(a), 263(a), and 168 that provide guidance on the deduction and capitalization of expenditures related to tangible property. Adoption of these regulations required certain mandatory and elective accounting methods with respect to property and equipment, inventory and supplies. MPC adopted these regulations as of January 1, 2014 and adoption of these provisions did not have a material impact on the results of operations or financial position during 2014 or 2015.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration