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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
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:
(in thousands) | 2019 |  | 2018
Deferred income tax assets: |  |  |
Sale leaseback deferred gain | $ | — |  |  | $ | 1,311 |
Inventory valuation reserves | 199 |  |  | 174 |
Inventory capitalization | 1,696 |  |  | 1,501 |
Accrued bonus | 497 |  |  | 911 |
State net operating loss carryforwards | 1,835 |  |  | 1,934 |
Federal net operating loss carryforwards | 139 |  |  | — |
Equity security mark to market | 217 |  |  | 622 |
Straight line lease | — |  |  | 231 |
Lease liabilities | 8,945 |  |  | 150 |
Interest limitation carryforwards | 754 |  |  | — |
Other | 445 |  |  | 453 |
Total deferred income tax assets | 14,727 |  |  | 7,287 |
Valuation allowance | (1,700 | ) |  | (1,766 | )
Total net deferred income tax assets | 13,027 |  |  | 5,521 |
Deferred income tax liabilities: |  |  |
Tax over book depreciation and amortization | 4,859 |  |  | 5,121 |
Prepaid expenses | 296 |  |  | 377 |
Lease assets | 8,537 |  |  | 92 |
Interest rate swap | 77 |  |  | 104 |
Other | 48 |  |  | 80 |
Total deferred income tax liabilities | 13,817 |  |  | 5,774 |
Deferred income taxes | $ | (790 | ) |  | $ | (253 | )
Significant components of the provision for income taxes from continuing operations are as follows:
(in thousands) | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | (10 | ) |  | $ | 3,469 |  |  | $ | 1,067 |
State | 57 |  |  | 290 |  |  | 107 |
Total current | 47 |  |  | 3,759 |  |  | 1,174 |
Deferred: |  |  |  |  |  |  |  |
Federal | (833 | ) |  | (108 | ) |  | (1,043 | )
State | 59 |  |  | (275 | ) |  | 6 |
Total deferred | (774 | ) |  | (383 | ) |  | (1,037 | )
Total | $ | (727 | ) |  | $ | 3,376 |  |  | $ | 137 |
The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:
(in thousands) | 2019 |  | 2018 |  | 2017
Amount |  | % |  | Amount |  | % |  | Amount |  | %
Tax at U.S. statutory rates | $ | (790 | ) |  | 21.0 | % |  | $ | 3,459 |  |  | 21.0 | % |  | $ | 503 |  |  | 34.0 | %
State income taxes, net of federal tax benefit | 165 |  |  | (4.4 | )% |  | 269 |  |  | 1.6 | % |  | 66 |  |  | 4.4 | %
State valuation allowance | (60 | ) |  | 1.6 | % |  | (315 | ) |  | (1.9 | )% |  | 8 |  |  | 0.6 | %
Manufacturing exemption | — |  |  | — | % |  | — |  |  | — | % |  | (117 | ) |  | (7.9 | )%
Stock option compensation | (155 | ) |  | 4.1 | % |  | (39 | ) |  | (0.2 | )% |  | — |  |  | — | %
Executive compensation limitation | 57 |  |  | (1.5 | )% |  | — |  |  | — | % |  | — |  |  | — | %
Other nondeductible expenses | 64 |  |  | (1.7 | )% |  | — |  |  | — | % |  | — |  |  | — | %
Rate change effects | — |  |  | — | % |  | — |  |  | — | % |  | (381 | ) |  | (25.8 | )%
Other, net | (8 | ) |  | 0.2 | % |  | 2 |  |  | — | % |  | 58 |  |  | 4.0 | %
Total | $ | (727 | ) |  | 19.3 | % |  | $ | 3,376 |  |  | 20.5 | % |  | $ | 137 |  |  | 9.3 | %
Income tax payments of $1.2 million, $2.4 million and $2.6 million were made in 2019, 2018 and 2017, respectively. The Company has US Federal net operating loss carryforwards of $0.7 million and interest limitation carryforwards of $3.5 million at the end of fiscal year 2019. Such items are not subject to expiration. The Company also had state net operating loss carryforwards at the end of fiscal years 2019 and 2018 of $43.6 million and $46.5 million, respectively. The majority of these losses will expire between the years of 2020 and 2037, while various losses are not subject to expiration. A valuation allowance has been set up against $40.3 million 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 state net operating loss carryforwards was $1.7 million at December 31, 2019 and December 31, 2018 respectively. In addition, $47,504 and $76,747 valuation allowance was established at December 31, 2019 and 2018 respectively, for other deferred tax assets. This resulted in a valuation allowance decrease of $66,744. 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 2014. The Company had no uncertain tax position activity during 2019 or 2018. 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 2019.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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