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

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Significant components of the Company's deferred tax liabilities and assets are as follows at the respective year ends:



(Amounts in thousands)	2013			2012
Deferred tax assets:
Inventory valuation reserves	$	794		$	853
Allowance for doubtful accounts	100			162
Inventory capitalization	3,089			2,239
Environmental reserves	224			229
Interest rate swap	128			116
Back charge accrual	203			72
Deferred compensation	97			120
State net operating loss carryforwards	142			66
Other	253			278
Total deferred tax assets	5,030			4,135
Deferred tax liabilities:
Tax over book depreciation and amortization	8,021			8,046
Prepaid expenses	749			663
Other	57			90
Total deferred tax liabilities	8,827			8,799
Net deferred tax liabilities	$	(3,797	)	$	(4,664	)

Significant components of the provision for income taxes are as follows:

The reconciliation of income tax computed at the U. S. federal statutory tax rates to income tax expense is:



	2013					2012					2011
(Amounts in thousands)	Amount			%		Amount			%		Amount			%
Tax at U.S. statutory rates	$	734		34.0	%	$	2,156		34.0	%	$	2,975		34.0	%
State income taxes, net of federal tax benefit	(23		)	(1.1	)%	118			1.9	%	133			1.5	%
Bargain gain on CRI acquisition	(366		)	(17.0	)%	—			—	%	—			—	%
Manufacturing exemption	(138		)	(6.4	)%	(180		)	(2.8	)%	(162		)	(1.9	)%
Stock issuance costs	101			4.7	%	—			—	%	—			—	%
Stock option compensation	85			3.9	%	38			0.6	%	38			0.4	%
Other, net	5			0.3	%	(26		)	(0.5	)%	(31		)	(0.3	)%
Total	$	398		18.4	%	$	2,106		33.2	%	$	2,953		33.7	%