Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 29, 2012
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)
2012
 
2011
Deferred tax assets:
 
 
 
Inventory valuation reserves
$
853

 
$
966

Allowance for doubtful accounts
162

 
382

Inventory capitalization
2,239

 
1,601

Environmental reserves
229

 
229

Interest rate swap
116

 
—

Deferred compensation
120

 
135

State net operating loss
66

 
—

Other
350

 
295

Total deferred tax assets
4,135

 
3,608

Deferred tax liabilities:
 

 
 

Tax over book depreciation and amortization
8,046

 
2,908

Prepaid expenses
663

 
582

Other
90

 
44

Total deferred tax liabilities
8,799

 
3,534

Net deferred tax (liabilities) assets
$
(4,664
)
 
$
74

 







Significant components of the provision for (benefit from) income taxes are as follows:
(Amounts in thousands)
2012
 
2011
 
2010
Current:
 
 
 
 
 
Federal
$
1,771

 
$
2,670

 
$
2,039

State
281

 
162

 
193

Total current
2,052

 
2,832

 
2,232

Deferred:
 

 
 

 
 

Federal
114

 
108

 
(148
)
State
(60
)
 
13

 
32

Total deferred
54

 
121

 
(116
)
Total
$
2,106

 
$
2,953

 
$
2,116


The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:
2012
 
2011
 
2010
(Amounts in thousands)
Amount
 
%
 
Amount
 
%
 
Amount
 
%
Tax at U.S. statutory rates
$
2,156

 
34.0
 %
 
$
2,975

 
34.0
 %
 
$
2,091

 
34.0
 %
State income taxes, net of federal tax benefit
118

 
1.9
 %
 
133

 
1.5
 %
 
148

 
2.4
 %
Manufacturing exemption
(180
)
 
(2.8
)%
 
(162
)
 
(1.9
)%
 
(160
)
 
(2.6
)%
Other, net
12

 
0.1
 %
 
7

 
0.1
 %
 
37

 
0.6
 %
Total
$
2,106

 
33.2
 %
 
$
2,953

 
33.7
 %
 
$
2,116

 
34.4
 %
 
Income tax payments of approximately $2,112,000, $3,143,000 and $1,659,000 were made in 2012, 2011 and 2010, respectively. The Company had state net operating loss carryforwards of approximately $43,143,000 at December 29, 2012, which will expire between the years 2017 to 2030, and $42,817,000 at December 31, 2011. Since the likelihood of recognizing the tax effect of these carryforwards is remote, they have not been recognized in the consolidated 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 is no longer subject to U.S. federal or state income tax examinations for years before 2008. 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 2012 or 2011.