Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:
 
Year ended December 31,
 
2018

 
2017

 
2016

 
(thousands of dollars)
Current federal provision (benefit)
$
(74
)
 
$
(1,202
)
 
$
1,691

Current state provision
31

 
282

 
18

 
 
 
 
 
 
Deferred federal provision (benefit)
(974
)
 
(6,320
)
 
8,645

Deferred state provision
210

 
81

 
150

 
 
 
 
 
 
Income tax expense (benefit)
$
(807
)

$
(7,159
)

$
10,504

Schedule of Effective Income Tax Rate Reconciliation
The difference between the effective tax rate in income tax expense and the Federal statutory rate of 21% for the year ended December 31, 2018, and 35% for the years ended December 31 2017 and 2016, is as follows:
 
2018

 
2017

 
2016

 
(thousands of dollars)
Income taxes at U.S. statutory rate
$
(822
)
 
$
3,885

 
$
10,476

State taxes, net of federal benefit
234

 
235

 
285

Net operating loss carryback
—

 
(961
)
 
—

Research and development credits
(263
)
 
—

 
—

Permanent and other items
44

 
(11
)
 
(257
)
Deferred tax impact of US tax reform
—

 
(10,307
)
 
—

Total tax expense (benefit)
$
(807
)

$
(7,159
)

$
10,504

Tax Effects of Temporary Differences
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,
 
2018

 
2017

 
(thousands of dollars)
Deferred tax liabilities:
 
 
 
Plant, pipeline and equipment
$
(25,169
)
 
$
(17,014
)
Intangible assets
(1,075
)
 
(778
)
Other assets
(40
)
 
(4
)
Investment in AMAK
(671
)
 
(1,023
)
Total deferred tax liabilities
$
(26,955
)

$
(18,819
)
 
 
 
 
Deferred tax assets:
 
 
 
Accounts receivable
238

 
198

Inventory
133

 
156

Mineral interests
226

 
226

Foreign tax credit
802

 
—

Net operating loss carryforward
9,073

 
—

Post-retirement benefits
79

 
252

Stock-based compensation
954

 
971

Gross deferred tax assets
11,505


1,803

Valuation allowance
(226
)
 
(226
)
Total net deferred tax assets
$
11,279


$
1,577

Net deferred tax liabilities
$
(15,676
)

$
(17,242
)