XML 34 R17.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
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:
| 2017 |  | 2016
Deferred income tax assets: |  |  |
Sale leaseback deferred gain | $ | 1,382,270 |  |  | $ | 2,387,309 |
Inventory valuation reserves | 209,745 |  |  | 379,005 |
Allowance for doubtful accounts | 7,944 |  |  | 28,556 |
Inventory capitalization | 943,203 |  |  | 1,780,957 |
Environmental reserves | 124,029 |  |  | 199,191 |
Interest rate swap | — |  |  | 15,185 |
Warranty accrual | 8,132 |  |  | 62,035 |
Deferred compensation | 36,617 |  |  | 60,745 |
Accrued bonus | 483,238 |  |  | 337,028 |
Accrued expenses | 24,749 |  |  | 77,629 |
State net operating loss carryforwards | 2,069,258 |  |  | 1,724,843 |
Other | 479,338 |  |  | 389,530 |
Total deferred income tax assets | 5,768,523 |  |  | 7,442,013 |
Valuation allowance | (2,087,860 | ) |  | (1,790,051 | )
Total net deferred income tax assets | 3,680,663 |  |  | 5,651,962 |
Deferred income tax liabilities: |  |  |
Tax over book depreciation and amortization | 3,971,816 |  |  | 6,946,812 |
Prepaid expenses | 174,322 |  |  | 211,300 |
Interest rate swap | 87,016 |  |  | — |
Other | 83,419 |  |  | 103,342 |
Total deferred income tax liabilities | 4,316,573 |  |  | 7,261,454 |
Deferred income taxes | $ | (635,910 | ) |  | $ | (1,609,492 | )
Significant components of the provision for income taxes from continuing operations are as follows:
| 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
Federal | $ | 1,067,490 |  |  | $ | (980,495 | ) |  | $ | 1,415,142 |
State | 106,832 |  |  | 190,230 |  |  | 233,626 |
Total current | 1,174,322 |  |  | (790,265 | ) |  | 1,648,768 |
Deferred: |  |  |  |  |  |  |  |
Federal | (1,043,384 | ) |  | (1,329,302 | ) |  | (47,530 | )
State | 6,201 |  |  | (78,433 | ) |  | 197,762 |
Total deferred | (1,037,183 | ) |  | (1,407,735 | ) |  | 150,232 |
Total | $ | 137,139 |  |  | $ | (2,198,000 | ) |  | $ | 1,799,000 |
Tax benefit from discontinued operations amounted to $51,000 and $651,000 for the fiscal years ended 2016 and 2015, respectively. The Company did not have any discontinued operations for 2017. The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:
| 2017 |  | 2016 |  | 2015
Amount |  | % |  | Amount |  | % |  | Amount |  | %
Tax at U.S. statutory rates | $ | 502,690 |  |  | 34.0 | % |  | $ | (3,125,382 | ) |  | 34.0 | % |  | $ | (2,880,574 | ) |  | 34.0 | %
State income taxes, net of federal tax benefit | 65,546 |  |  | 4.4 | % |  | (48,842 | ) |  | 0.5 | % |  | 285,426 |  |  | (3.4 | )%
State valuation allowance | 8,498 |  |  | 0.6 | % |  | 95,961 |  |  | (1.0 | )% |  | 94,068 |  |  | (1.1 | )%
Life insurance cash surrender value | — |  |  | — | % |  | 503,700 |  |  | (5.5 | )% |  | — |  |  | — | %
Earn-out adjustments | — |  |  | — | % |  | — |  |  | — | % |  | (857,061 | ) |  | 10.1 | %
Manufacturing exemption | (116,980 | ) |  | (7.9 | )% |  | — |  |  | — | % |  | (187,604 | ) |  | 2.2 | %
Stock option compensation | 226 |  |  | — | % |  | 45,929 |  |  | (0.5 | )% |  | 94,637 |  |  | (1.1 | )%
Uncertain tax positions | — |  |  | — | % |  | — |  |  | — | % |  | (139,000 | ) |  | 1.6 | %
Rate change effects | (380,961 | ) |  | (25.8 | )% |  | — |  |  | — | % |  | — |  |  | — | %
Goodwill impairment | — |  |  | — | % |  | — |  |  | — | % |  | 5,405,302 |  |  | (63.8 | )%
Other, net | 58,120 |  |  | 4.0 | % |  | 330,634 |  |  | (3.6 | )% |  | (16,194 | ) |  | 0.3 | %
Total | $ | 137,139 |  |  | 9.3 | % |  | $ | (2,198,000 | ) |  | 23.9 | % |  | $ | 1,799,000 |  |  | (21.2 | )%
Income tax payments of $2,576,515, $991,888 and $2,250,558 were made in 2017, 2016 and 2015, respectively. The Company had state net operating loss carryforwards at the end of fiscal years 2017 and 2016 of $49,711,027 and $49,676,851, respectively. These losses will expire between the years of 2018 and 2037. A valuation allowance has been set up against $49,612,725 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 $2,064,674 and $1,724,843 at December 31, 2017 and December 31, 2016, respectively. In addition, a $23,186 valuation allowance was established at December 31, 2017 for other deferred tax assets. This resulted in a valuation allowance increase of $297,809 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 2013. The Company completed its 2012 and 2013 federal income tax return examination by the Internal Revenue Service during the second quarter of 2015. The Company had no uncertain tax position activity during 2017 or 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 2017. On December 22, 2017, the Tax Cuts and Jobs Act (“The Act”) was signed into law by the President of the United States, enacting significant changes to the Internal Revenue Code effective January 1, 2018. The Act includes a number of provisions including, but not limited to, a permanent reduction of the U.S. corporate tax rate from 35 percent to 21 percent, eliminating the deduction for domestic production activities, limiting the tax deductibility of interest expense, accelerating the expensing of certain business assets and reducing the amount of executive pay that could qualify as a tax deduction. Many effects of The Act are international in nature, such as the one-time transition tax, base erosion anti-abuse tax and the global intangible low-taxed income tax, and thus would not pertain to the Company as it has no international operations. The Company's net deferred tax liability as of December 31, 2017 was determined based on the new permanently enacted corporate income tax rate of 21 percent. As a result, the 2017 income tax provision was reduced by $380,961 for a one-time non-cash revaluation adjustment of the net deferred tax liabilities. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of The Act. The Company's revaluation of its deferred tax assets and liabilities is provisional and subject to further clarification of the new law, including but not limited to US state conformity that cannot be estimated at this time and measurement of underlying tax basis in certain business assets. The ultimate impact may differ from provisional amounts due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, and additional regulatory guidance that may be issued. Further guidance may be forthcoming from federal and state agencies, which could result in additional adjustments. The accounting is expected to be completed no later than the filing of the 2017 U.S. corporate income tax return in 2018.

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=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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration