v3.6.0.2

Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes |
(8) | INCOME TAXES
Income tax expense is composed of the following:
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | (Thousands of dollars) |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | 409 |  |  |  | 284 |  |  |  | 307 |
Foreign |  |  | 1,374 |  |  |  | 3,159 |  |  |  | 4,352 |
Deferred – principally Federal |  |  | (2,252 | ) |  |  | 12,889 |  |  |  | 15,768 |
Total |  | $ | (469 | ) |  | $ | 16,332 |  |  | $ | 20,427 |
Income tax expense as a percentage of pre-tax earnings varies from the effective Federal statutory rate of 35% as a result of the following:
|  | Year Ended |  |  | Year Ended |  |  | Year Ended |
|  | December 31, 2016 |  |  | December 31, 2015 |  |  | December 31, 2014 |
|  | (Thousands of dollars, except percentage amounts) |
|  | Amount |  |  | Tax Rate % |  |  | Amount |  |  | Tax Rate % |  |  | Amount |  |  | Tax Rate % |
Income taxes at statutory rate |  | $ | (9,502 | ) |  |  | 35 |  |  | $ | 15,140 |  |  |  | 35 |  |  | $ | 18,590 |  |  |  | 35 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Valuation allowance on foreign tax credits |  |  | 8,991 |  |  |  | (33 | ) |  |  | — |  |  |  | — |  |  |  | 113 |  |  |  | — |
Valuation allowance on state net operating loss carryforwards |  |  | 5,028 |  |  |  | (19 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Valuation allowance reversal–investment in foreign entity |  |  | — |  |  |  | — |  |  |  | (456 | ) |  |  | (1 | ) |  |  | — |  |  |  | — |
Change in tax rate on deferred items |  |  | (4,772 | ) |  |  | 18 |  |  |  | 1,078 |  |  |  | 3 |  |  |  | — |  |  |  | — |
State income taxes, net of federal benefit |  |  | (1,384 | ) |  |  | 5 |  |  |  | 146 |  |  |  | — |  |  |  | 916 |  |  |  | 2 |
Other items – net |  |  | 1,170 |  |  |  | (4 | ) |  |  | 424 |  |  |  | 1 |  |  |  | 808 |  |  |  | 1 |
Total |  | $ | (469 | ) |  |  | 2 |  |  | $ | 16,332 |  |  |  | 38 |  |  | $ | 20,427 |  |  |  | 38 |
The change in tax rate on deferred items relates to the increase or reduction in the estimated effective tax rate that will be present at the time the deferred tax assets and liabilities reverse for tax purposes. The increase is attributable to an increase in the apportionment percentages in the various jurisdictions in which we operate as a result of increased operations in certain states. The reduction is attributable to a decline in the apportionment percentages in the various jurisdictions in which we operate, primarily as a result of a change in law related to apportionment factor calculations in one jurisdiction and a change in the composition of earnings in the various jurisdictions in which we operate. 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. The tax effects of significant items comprising our net deferred tax balance at December 31 are as follows:
|  | 2016 |  |  | 2015 |
|  | (Thousands of dollars) |
Deferred tax assets: |  |  |  |  |  |  |  |
Deferred compensation |  | $ | 937 |  |  | $ | 946 |
Foreign tax credits |  |  | 21,492 |  |  |  | 20,118 |
Vacation and bonus accrual |  |  | 1,674 |  |  |  | 1,952 |
Inventory valuation |  |  | 7,655 |  |  |  | 6,808 |
Rental accrual |  |  | 1,416 |  |  |  | 1,691 |
Hurricane relief credit |  |  | 1,255 |  |  |  | 1,255 |
Stock-based compensation |  |  | 2,202 |  |  |  | 3,598 |
Other |  |  | 3,115 |  |  |  | 3,593 |
Net operating losses |  |  | 89,256 |  |  |  | 61,611 |
Total deferred tax assets |  |  | 129,002 |  |  |  | 101,572 |
Valuation allowance – state NOL carryforwards |  |  | (5,318 | ) |  |  | (290 | )
Valuation allowance – tax credit carryforwards |  |  | (11,039 | ) |  |  | (2,047 | )
Total deferred tax assets, net |  |  | 112,645 |  |  |  | 99,235 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Tax depreciation in excess of book depreciation |  |  | (253,560 | ) |  |  | (242,501 | )
Total deferred tax liabilities |  |  | (253,560 | ) |  |  | (242,501 | )
Net deferred tax liabilities |  | $ | (140,915 | ) |  | $ | (143,266 | )
Current deferred tax assets |  | $ | 10,798 |  |  | $ | 10,379 |
Deferred tax liability – long-term |  |  | (151,713 | ) |  |  | (153,645 | )
Net deferred tax liabilities |  | $ | (140,915 | ) |  | $ | (143,266 | )
As a result of certain realization requirements under GAAP, the Company’s deferred tax assets as of December 31, 2016 in the table above do not include certain deferred tax assets that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity is expected to increase by $2.9 million when the deferred tax assets are ultimately realized. The Company uses tax law ordering for purposes of determining when excess tax benefits have been realized. The Company has U.S. Federal net operating loss carryforwards (“NOLs”) of approximately $230.0 million that, if not used, will expire beginning in 2028 through 2036. Additionally, for state income tax purposes, the Company has NOLs of approximately $198.1 million available to reduce future state taxable income. These NOLs expire in varying amounts through 2036, the majority of which expire in 2024 through 2036. The Company had a valuation allowance of $5.3 million as of December 31, 2016 against certain net operating losses in eight states which we have determined are more likely than not to be forfeited in future years. During 2016, the Company recorded $5.0 million of valuation allowances on state NOLs. The Company also has foreign tax credits of approximately $21.5 million which expire at various dates through 2026. The estimated future U.S. taxable income, after utilization of the available net operating loss carryforwards, will limit the ability of the Company to utilize some of the foreign tax credit carryforwards during their carry forward period and it is not more likely than not that a portion of these credits will be utilized in future years. Therefore, the Company has a valuation allowance of $11.0 million on these credits, $9.0 million of which was recorded in 2016. The increase in the valuation allowance is attributable to an increase in the Company’s net operating tax loss in 2016 and projected net operating tax loss in 2017. The Company files income tax returns in the U.S. federal jurisdiction and in many U.S. state jurisdictions. The tax years 2013 to 2016 remain open to examination by the major taxing jurisdictions in which the Company is subject to tax. Income taxes paid were approximately $2.6 million, $5.5 million, and $9.6 million for each of the years ended December 31, 2016, 2015, and 2014, respectively. At December 31, 2016, the Company had no unrecognized tax benefits. It is the Company’s practice to recognize interest and penalties related to income tax expense as part of non-operating expenses.

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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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