XML 39 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes
Note 8 Income Taxes
 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows at the respective year ends:
 
(Amounts in thousands)
 
2011
  
2010
 
        
Deferred tax assets:
      
  Inventory valuation reserves
 $966  $1,181 
  Allowance for doubtful accounts
  382   166 
  Inventory capitalization
  1,601   1,039 
  Environmental reserves
  229   335 
  Other
  430   212 
      Total deferred tax assets
  3,608   2,933 
Deferred tax liabilities:
        
  Tax over book depreciation and amortization
  2,908   2,555 
  Prepaid expenses
  582   183 
  Other
  44   - 
      Total deferred tax liabilities
  3,534   2,738 
Net deferred tax assets
 $74  $195 
 
Significant components of the provision for (benefit from) income taxes for continuing operations are as follows:
 
(Amounts in thousands)
 
2011
  
2010
  
2009
 
Current:
         
  Federal
 $2,670  $2,039  $100 
  State
  162   193   133 
      Total current
  2,832   2,232   233 
Deferred:
            
  Federal
  108   (148)  (16)
  State
  13   32   (84)
      Total deferred
  121   (116)  (100)
Total
 $2,953  $2,116  $133 
 
The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense for continuing operations is:
 

(Amounts in thousands)
 
2011
  
2010
  
2009
 
   
Amount
  
%
  
Amount
  
%
  
Amount
  
%
 
Tax at U.S. statutory rates
 $2,975   34.0% $2,091   34.0% $120   34.0%
State income taxes, net of
                        
    Federal tax benefit
  133   1.5%  148   2.4%  14   4.0%
Manufacturing exemption
  (162)  (1.9%)  (160)  (2.6%)  -   - 
Other, net
  7   0.1%  37   0.6%  (1)  (0.1%)
Total
 $2,953   33.7% $2,116   34.4% $133   37.9%
 
Income tax payments of approximately $3,143,000, $1,659,000 and $2,039,000 were made in 2011, 2010 and 2009, respectively. The Company had South Carolina state net operating loss carryforwards of approximately $39,423,000 at December 31, 2011, which will expire between the years 2017 to 2030, and $39,179,000 at January 1, 2011. Since the likelihood of recognizing these carryforwards is remote, they have been fully reserved in the financial statements.
 
The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2007 and substantially all material state and local income tax matters for years through 2005. The Company’s federal income tax return for 2007 was examined by the Internal Revenue Service in 2009 and federal income tax and interest liabilities resulting from this examination were not material. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accruals for uncertain tax positions including interest and penalties at the end of 2011 or 2010.