Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.1.9
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2014
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:

   
Year ended December 31,
 
   
2014
   
2013
   
2012
 
   
(thousands of dollars)
 
Current federal provision
  $ 8,756     $ 6,748     $ 4,821  
Current state provision
    296       233       199  
                         
Deferred federal provision (benefit)
    (1,893 )     1,173       882  
Deferred state provision (benefit)
    (12 )     (7 )     2  
                         
Income tax expense
  $ 7,147     $ 8,147     $ 5,904  
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, 2014, 2013, and 2012, is as follows:

   
2014
   
2013
   
2012
 
   
(thousands of dollars)
 
Income taxes at U.S. statutory rate
  $ 7,952     $ 9,675     $ 5,679  
State taxes, net of federal benefit
    181       139       132  
Permanent and other items
    (915 )     (644 )     (250 )
Increase (decrease) in valuation allowance
    (71 )     (1,023 )     343  
    Total tax expense
  $ 7,147     $ 8,147     $ 5,904  
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,
 
   
2014
   
2013
 
   
(thousands of dollars)
 
Deferred tax liabilities:
           
  Plant, pipeline and equipment
  $ (8,352 )   $ (8,507 )
  Other assets
    -       (43 )
  Investment in AMAK
    ( 4,382 )     ( 4,757 )
  Total deferred tax liabilities
  $ (12,734 )   $ (13,307 )
                 
Deferred tax assets:
               
  Accounts receivable
    276       260  
  Inventory
    1,018       131  
  Mineral interests
    376       376  
  Unrealized loss on swap agreements
    196       214  
  Environmental
    -       71  
  Post-retirement benefits
    327       373  
  Stock-based compensation
    1,705       1,015  
  Intangible assets
    229       -  
  Deferred revenue
    164       654  
    Gross deferred tax assets
    4,291       3,094  
  Valuation allowance
    (376 )     (447 )
  Total net deferred tax assets
  $ 3,915     $ 2,647  
    Net deferred tax liabilities
  $ (8,819 )   $ (10,660 )
Current and Non-Current Classifications of Deferred Tax Balances
The current and non-current classifications of the deferred tax balances are as follows:

   
2014
   
2013
 
   
(thousands of dollars)
 
Current:
           
Deferred tax asset
  $ 1,652     $ 1,324  
                 
Non-current:
               
                 
Deferred tax assets
    3,269       1,764  
Deferred tax liability
    (13,364 )     (13,301 )
Valuation allowance
    (376 )     (447 )
Non-current deferred tax liability, net
    (10,471 )     (11,984 )
                 
Total deferred liabilities, net
  $ (8,819 )   $ (10,660 )