Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2017
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:

   
Year ended December 31,
 
   
2017
   
2016
   
2015
 
   
(thousands of dollars)
 
Current federal provision (benefit)
 
$
(1,202
)
 
$
1,691
   
$
4,062
 
Current state provision
   
282
     
18
     
285
 
                         
Deferred federal provision (benefit)
   
(6,320
)
   
8,645
     
5,367
 
Deferred state provision
   
81
     
150
     
50
 
                         
Income tax expense (benefit)
 
$
( 7,159
)
 
$
10,504
   
$
9,764
 
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, 2017, 2016, and 2015, is as follows:

   
2017
   
2016
   
2015
 
   
(thousands of dollars)
 
Income taxes at U.S. statutory rate
 
$
3,885
   
$
10,476
   
$
9,927
 
State taxes, net of federal benefit
   
235
     
285
     
230
 
Net operating loss carryback
   
(961
)
   
-
     
-
 
Permanent and other items
   
(11
)
   
(257
)
   
(393
)
Deferred tax impact of US tax reform
   
(10,307
)
   
-
     
-
 
    Total tax expense (benefit)
 
$
(7,159
)
 
$
10,504
   
$
9,764
 
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,
 
   
2017
   
2016
 
   
(thousands of dollars)
 
Deferred tax liabilities:
           
  Plant, pipeline and equipment
 
$
(17,014
)
 
$
(22,598
)
  Intangible assets
   
(778
)
   
(786
)
  Other assets
   
(4
)
   
(10
)
  Investment in AMAK
   
(1,023
)
   
(3,109
)
  Total deferred tax liabilities
 
$
(18,819
)
 
$
(26,503
)
                 
Deferred tax assets:
               
  Accounts receivable
   
198
     
322
 
  Inventory
   
156
     
1,283
 
  Mineral interests
   
226
     
376
 
  Unrealized loss on swap agreements
   
-
     
20
 
  Post-retirement benefits
   
252
     
423
 
  Stock-based compensation
   
971
     
1,372
 
    Gross deferred tax assets
   
1,803
     
3,796
 
  Valuation allowance
   
(226
)
   
(376
)
  Total net deferred tax assets
 
$
1,577
   
$
3,420
 
    Net deferred tax liabilities
 
$
(17,242
)
 
$
(23,083
)