Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.3.1.900
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2015
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:

   
Year ended December 31,
 
   
2015
   
2014
   
2013
 
   
(thousands of dollars)
 
Current federal provision
 
$
4,062
   
$
8,756
   
$
6,748
 
Current state provision
   
285
     
296
     
233
 
                         
Deferred federal provision (benefit)
   
5,367
     
(1,893
)
   
1,173
 
Deferred state provision (benefit)
   
50
     
(12
)
   
(7
)
                         
Income tax expense
 
$
9,764
   
$
7,147
   
$
8,147
 
Difference between Effective Tax Rate in Income Tax Expense and Federal Statutory Rate
The difference between the effective tax rate in income tax expense and the Federal statutory rate of 35% for the years ended December 31, 2015, 2014, and 2013, is as follows:

   
2015
   
2014
   
2013
 
   
(thousands of dollars)
 
Income taxes at U.S. statutory rate
 
$
9,927
   
$
7,952
   
$
9,675
 
State taxes, net of federal benefit
   
230
     
181
     
139
 
Permanent and other items
   
(393
)
   
(915
)
   
(644
)
Increase (decrease) in valuation allowance
   
-
     
(71
)
   
(1,023
)
    Total tax expense
 
$
9,764
   
$
7,147
   
$
8,147
 
Tax Effects of Temporary Differences that Give Rise to Significant Portions of Federal and State Deferred Tax Assets and Deferred Tax Liabilities
Tax effects of temporary differences that give rise to significant portions of federal and state deferred tax assets and deferred tax liabilities were as follows:

   
December 31,
 
   
2015
   
2014
 
   
(thousands of dollars)
 
Deferred tax liabilities:
           
  Plant, pipeline and equipment
 
$
(14,996
)
 
$
(8,352
)
  Intangible assets
   
(284
)
   
-
 
  Other assets
   
(14
)
   
-
 
  Investment in AMAK
   
( 2,522
)
   
( 4,382
)
  Total deferred tax liabilities
 
$
(17,816
)
 
$
(12,734
)
                 
Deferred tax assets:
               
  Accounts receivable
   
283
     
276
 
  Inventory
   
1,785
     
1,018
 
  Mineral interests
   
376
     
376
 
  Unrealized loss on swap agreements
   
62
     
196
 
  Post-retirement benefits
   
330
     
327
 
  Stock-based compensation
   
969
     
1,705
 
  Intangible assets
   
-
     
229
 
  Deferred revenue
   
-
     
164
 
    Gross deferred tax assets
   
3,805
     
4,291
 
  Valuation allowance
   
(376
)
   
(376
)
  Total net deferred tax assets
 
$
3,429
   
$
3,915
 
    Net deferred tax liabilities
 
$
(14,387
)
 
$
(8,819
)
Current and Non-Current Classifications of Deferred Tax Balances
The current and non-current classifications of the deferred tax balances are as follows:

   
2015
   
2014
 
   
(thousands of dollars)
 
Current:
           
Deferred tax asset
 
$
2,116
   
$
1,652
 
                 
Non-current:
               
                 
Deferred tax assets
   
4,637
     
3,269
 
Deferred tax liability
   
(20,764
)
   
(13,364
)
Valuation allowance
   
(376
)
   
(376
)
Non-current deferred tax liability, net
   
(16,503
)
   
(10,471
)
                 
Total deferred liabilities, net
 
$
(14,387
)
 
$
(8,819
)