XML 29 R15.htm IDEA: XBRL DOCUMENT v3.24.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2023
INCOME TAXES  
INCOME TAXES

NOTE 8: INCOME TAXES

The following table lists the components of the provision for income taxes:

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

    

2023

    

2022

    

2021

Current provision:

 

​

  

 

​

  

 

​

  

Federal

​

$

12,384

​

$

12,225

​

$

7,176

State

​

 

1,109

​

 

1,360

​

 

346

Deferred (benefit) provision:

​

 

​

​

 

​

​

 

​

Federal

​

 

(3,047)

​

 

(1,687)

​

 

(248)

State

​

 

(79)

​

 

(111)

​

 

108

Total income tax provision

​

$

10,367

​

$

11,787

​

$

7,382

​

A reconciliation between the federal statutory rate and Marine Products’ effective tax rate is as follows:

​

​

​

​

​

​

​

​

​

​

    

2023

    

2022

    

2021

 

Federal statutory rate

 

21.0

%  

21.0

%  

21.0

%  

State income taxes, net of federal benefit

 

1.2

 

1.3

 

0.9

 

Research and experimentation credit

 

(1.3)

 

(0.7)

 

(0.9)

 

Non-deductible expenses

​

(0.7)

​

0.3

​

(0.8)

​

Change in contingencies

 

0.5

 

0.8

 

0.4

 

Adjustments related to vesting of restricted stock

 

(0.1)

 

(0.1)

 

(1.0)

 

Other

 

(0.7)

 

—

 

0.7

 

Effective tax rate

 

19.9

%  

22.6

%  

20.3

%  

​

Significant components of the Company’s deferred tax assets and liabilities are as follows:

​

​

​

​

​

​

​

​

December 31, 

    

2023

    

2022

(in thousands)

 

​

  

 

​

  

Deferred tax assets:

 

​

  

 

​

  

Warranty costs

​

$

1,557

​

$

1,254

Sales incentives and discounts

​

 

570

​

 

110

Stock-based compensation

​

 

824

​

 

866

Long-term retirement plan

​

 

3,960

​

 

3,099

Capitalized research and development

​

​

2,900

​

​

1,300

All others, net

​

 

465

​

 

490

Total deferred tax assets

​

 

10,276

​

 

7,119

Deferred tax liabilities:

​

 

  

​

 

  

Depreciation and amortization expense

​

 

(1,686)

​

 

(1,092)

Net deferred tax assets

​

$

8,590

​

$

6,027

​

Total net income tax payments were $13.9 million in 2023, $13.0 million in 2022, and $7.5 million in 2021. As of December 31, 2023, the Company had net operating loss carryforwards related to state income taxes of approximately $1.2 million (gross) that will expire in 2034. The Company does not have a valuation allowance related to net operating loss carryforwards due to implemented tax planning strategies.

The Company’s policy is to record interest and penalties related to income tax matters as part of income tax expense. Accrued interest and penalties were immaterial as of December 31, 2023 and 2022.

During 2023, the Company recognized an increase in its liability for unrecognized tax benefits related primarily to prior year positions and recorded it as part of other long-term liabilities on the consolidated balance sheet. This liability, if released, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

​

​

​

​

​

​

​

​

(in thousands)

    

2023

    

2022

Balance at beginning of the year

​

$

1,058

​

$

539

Additions based on tax positions related to the current year

​

 

236

​

 

393

Additions for tax positions of prior years

​

 

55

​

 

126

Balance at end of the year

​

$

1,349

​

$

1,058

​

It is reasonably possible that the amount of the unrecognized benefits with respect to the Company’s 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, or conclusions of ongoing examinations or reviews. 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, the uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. In general, the Company’s 2020 through 2022 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year.