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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 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) | 2016 |  | 2015
Deferred tax assets: |  |  |
Sale leaseback deferred gain | $ | 2,387 |  |  | $ | — |
Inventory valuation reserves | 379 |  |  | 699 |
Allowance for doubtful accounts | 29 |  |  | 61 |
Inventory capitalization | 1,781 |  |  | 1,692 |
Environmental reserves | 199 |  |  | 175 |
Interest rate swap | 15 |  |  | 41 |
Warranty accrual | 62 |  |  | 88 |
Deferred compensation | 61 |  |  | 64 |
Accrued bonus | 337 |  |  | 338 |
Accrued expenses | 78 |  |  | 1,403 |
State net operating loss carryforwards | 1,725 |  |  | 1,616 |
Other | 389 |  |  | 423 |
Total deferred tax assets | 7,442 |  |  | 6,600 |
Valuation allowance | (1,790 | ) |  | (1,694 | )
Total net deferred tax assets | 5,652 |  |  | 4,906 |
Deferred tax liabilities: |  |  |
Tax over book depreciation and amortization | 6,947 |  |  | 7,609 |
Prepaid expenses | 211 |  |  | 312 |
Other | 103 |  |  | 2 |
Total deferred tax liabilities | 7,261 |  |  | 7,923 |
Net deferred tax liabilities | $ | (1,609 | ) |  | $ | (3,017 | )
Significant components of the provision for income taxes from continuing operations are as follows:
(Amounts in thousands) | 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
Federal | $ | (981 | ) |  | $ | 1,414 |  |  | $ | 3,933 |
State | 191 |  |  | 235 |  |  | 656 |
Total current | (790 | ) |  | 1,649 |  |  | 4,589 |
Deferred: |  |  |  |  |  |  |  |
Federal | (1,329 | ) |  | (48 | ) |  | 964 |
State | (79 | ) |  | 198 |  |  | (167 | )
Total deferred | (1,408 | ) |  | 150 |  |  | 797 |
Total | $ | (2,198 | ) |  | $ | 1,799 |  |  | $ | 5,386 |
Tax benefit from discontinued operations amounted to $51,000, $651,000 and $3,807,000 for the fiscal years ended 2016, 2015 and 2014, respectively. The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:
(Amounts in thousands) | 2016 |  | 2015 |  | 2014
Amount |  | % |  | Amount |  | % |  | Amount |  | %
Tax at U.S. statutory rates | $ | (3,125 | ) |  | 34.0 | % |  | $ | (2,881 | ) |  | 34.0 | % |  | $ | 6,302 |  |  | 35.0 | %
State income taxes, net of federal tax benefit | (49 | ) |  | 0.5 | % |  | 285 |  |  | (3.4 | )% |  | 324 |  |  | 1.8 | %
State valuation allowance | 96 |  |  | (1.0 | )% |  | 94 |  |  | (1.1 | )% |  | — |  |  | — | %
Life insurance cash surrender value | 504 |  |  | (5.5 | )% |  | — |  |  | — | % |  | — |  |  | — | %
Earn-out adjustments | — |  |  | — | % |  | (857 | ) |  | 10.1 | % |  | (1,217 | ) |  | (6.8 | )%
Manufacturing exemption | — |  |  | — | % |  | (188 | ) |  | 2.2 | % |  | (458 | ) |  | (2.5 | )%
Stock option compensation | 46 |  |  | (0.5 | )% |  | 95 |  |  | (1.1 | )% |  | 91 |  |  | 0.5 | %
Uncertain tax positions | — |  |  | — | % |  | (139 | ) |  | 1.6 | % |  | 139 |  |  | 0.8 | %
Goodwill impairment | — |  |  | — | % |  | 5,405 |  |  | (63.8 | )% |  | — |  |  | — | %
Other, net | 330 |  |  | (3.6 | )% |  | (15 | ) |  | 0.2 | % |  | 205 |  |  | 1.1 | %
Total | $ | (2,198 | ) |  | 23.9 | % |  | $ | 1,799 |  |  | (21.3 | )% |  | $ | 5,386 |  |  | 29.9 | %
Income tax payments of approximately $992,000, $2,251,000 and $2,091,000 were made in 2016, 2015 and 2014, respectively. The Company had state net operating loss carryforwards at the end of fiscal years 2016 and 2015 of approximately $49,677,000 and $47,042,000, respectively. These losses will expire between the years of 2017 and 2036. A valuation allowance has been set up against $49,545,000 of these state net operating loss carryforwards because it is not more likely than not that the losses will be realized in the foreseeable future. The portion of the valuation allowance for the net operating loss carryforwards was $1,725,000 and $1,616,000 at December 31, 2016 and December 31, 2015, respectively. In addition, a $65,000 valuation allowance was established at December 31, 2016 for other deferred tax assets. This resulted in a valuation allowance increase of $96,000 all related to continuing operations. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company is no longer subject to U.S. federal examinations for years before 2014 or state income tax examinations for years before 2012. The Company completed its 2012 and 2013 federal income tax return examination by the Internal Revenue Service during the second quarter of 2015. Provided below is a roll forward of the Company's uncertain tax positions.
| (Amounts in thousands) | Unrecognized Tax Benefit |  | Interest and Penalties |  | Total
| Balance at January 3, 2015 | $ | 1,431 |  |  | $ | 73 |  |  | $ | 1,504 |
|  | Increases related to prior year tax positions | — |  |  | — |  |  | — |
|  | Decreases related to prior year tax positions | (1,431 | ) |  | (73 | ) |  | (1,504 | )
|  | Increases related to current year tax position | — |  |  | — |  |  | — |
|  | Settlements during period | — |  |  | — |  |  | — |
|  | Lapse of statute of limitations | — |  |  | — |  |  | — |
| Balance at December 31, 2015 | — |  |  | — |  |  | — |
|  | Increases related to prior year tax positions | — |  |  | — |  |  | — |
|  | Decreases related to prior year tax positions | — |  |  | — |  |  | — |
|  | Increases related to current year tax position | — |  |  | — |  |  | — |
|  | Settlements during period | — |  |  | — |  |  | — |
|  | Lapse of statute of limitations | — |  |  | — |  |  | — |
| Balance at December 31, 2016 | $ | — |  |  | $ | — |  |  | $ | — |
The Company's continuing practice is to recognize interest and/or penalties related to income tax matters in the provision for income taxes. The Company had no accruals for uncertain tax positions including interest and penalties at the end of 2016.

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- 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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