Ascent Industries Co. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

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:

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	%