Income Taxes

12 Months Ended

Dec. 31, 2020

Note 15 - Income Taxes

The provision (benefit) for income taxes for the periods indicated includes current and deferred components as follows:


		Year Ended December 31
		2020		2019
Current Tax Expense/(Benefit)
Federal	$	(92)	$	(12)
Foreign		137		-
State		17		42
		62		30
Deferred Tax Expense/(Benefit)
Federal		1		386
Foreign		136		-
State		-		(210)
		137		176

Tax benefit related to a decrease in unrecognized tax benefits		-		(221)
Interest expense, gross of related tax effects		-		(100)

Total	$	199	$	(115)

The (provision) benefit for income taxes for the periods indicated differs from the amounts computed by applying the federal statutory rate as follows:


	Year Ended December 31
	2020		2019
Statutory U.S. federal income tax rate	21.0%	21.0%
State income taxes, net of federal tax benefit	3.9%	2.9%
Valuation allowance	(23.5)%	(20.1)%
Foreign rate differential	(0.1)%	0.0%
State rate and other changes on deferred taxes	(0.4)%	(1.1)%
Federal and state tax credits	0.1%	0.1%
Uncertain tax positions	0.0%	1.7%
Nondeductible expenses and other	(1.4)%	(4.3)%
Effective income tax rate	(0.4)%	0.2%

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Deferred income taxes result from temporary differences in the financial and tax basis of assets and liabilities.

Components of deferred tax assets (liabilities) consisted of the following:


		December 31, 2020				December 31, 2019
Description		Assets		Liabilities		Assets		Liabilities
Accrued post-retirement and pension benefits	$	1,663	$	-	$	1,541	$	-
Intangible assets		-		(17)		-		(13)
Accrued expenses		2,027		-		3,370		-
Deferred state and local incentive revenue		1,132		-		1,780		-
Inventory valuation		3,145		-		2,071		-
Property, plant and equipment and railcars on operating leases		-		(2,018)		-		(6,295)
Net operating loss and tax credit carryforwards		48,738		-		34,078		-
Stock-based compensation expense		1,127		-		1,152		-
Other		1,135		-		-		(1,028)
Right of use asset		-		(5,543)		-		(14,193)
Lease liability		8,086		-		17,326		-
		67,053		(7,578)		61,318		(21,529)
Valuation Allowance		(59,613)		-		(39,792)		-
Deferred tax assets (liabilities)	$	7,440	$	(7,578)	$	21,526	$	(21,529)
Increase (decrease) in valuation allowance	$	19,821			$	15,342

A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has concluded that, based on evaluation of the positive and negative evidence, primarily the history of operating losses, we will not more likely than not realize the benefit of the deferred tax assets. The Company has certain pretax state net operating loss carryforwards of $238,537 which will expire between 2020 and 2039, for which a full valuation allowance has been recorded. The Company also has federal net operating loss carryforwards and federal tax credit carryforwards of $150,285 and $2,016, respectively, which will begin to expire in 2030, for which a full valuation allowance also has been recorded. The Company has foreign net operating loss carryforwards of $93 which will expire in 2022, for which a full valuation allowance has been recorded.

The Company does not have any unrecognized tax benefit that, if recognized, would affect the Company's effective tax rate as of December 31, 2020 and 2019. The entire unrecognized tax benefit balance of $1,310 was decreased to zero in 2019 due to settlements. As such, the Company's income tax provision included $0 of expenses related to interest and penalties for the years ended December 31, 2020 and 2019. The Company records interest and penalties as a component of income tax expense. However, as there are no unrecognized tax benefits for the years ended December 31, 2020 and 2019, the company has zero penalties or interest accrued at each of December 31, 2020 and 2019.

The Company and/or its subsidiaries file income tax returns with the U.S. federal government and in various state and foreign jurisdictions. A summary of tax years that remain subject to examination is as follows:

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Jurisdiction											Earliest Year
U.S. Federal											2018
States:
Pennsylvania											2001
Texas											2018
Illinois											2010
Virginia											2017
Colorado											2010
Indiana											2017
Nebraska											2016
Alabama											2016
Foreign:
China											2017
Mexico											2020

- 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.

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