Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes from continuing operations consisted of the following:
 
Year ended December 31,
 
2019

 
2018

 
2017

 
(thousands of dollars)
Current federal benefit
$

 
$
(74
)
 
$
(1,202
)
Current state expense
91

 
31

 
282

 
 
 
 
 
 
Deferred federal benefit
(3,564
)
 
(813
)
 
(5,389
)
Deferred state expense (benefit)
(93
)
 
210

 
81

 
 
 
 
 
 
Income tax benefit
$
(3,566
)

$
(646
)

$
(6,228
)
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 years ended December 31, 2019 and 2018, and 35% for the year ended December 31, 2017, is as follows:
 
2019

 
2018

 
2017

 
(thousands of dollars)
Income taxes at U.S. statutory rate
$
(3,455
)
 
$
(661
)
 
$
4,816

State taxes, net of federal benefit
256

 
234

 
235

Net operating loss carryback

 

 
(961
)
Research and development credits
(203
)
 
(263
)
 

Permanent and other items
(164
)
 
44

 
(11
)
Deferred tax impact of US tax reform

 

 
(10,307
)
Total tax benefit
$
(3,566
)
 
$
(646
)
 
$
(6,228
)
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,
 
2019

 
2018

 
(thousands of dollars)
Deferred tax liabilities:
 
 
 
Plant, pipeline and equipment
$
(29,227
)
 
$
(25,169
)
Intangible assets

 
(1,075
)
Other assets
(32
)
 
(40
)
Operating lease asset
(2,838
)
 

Investment in AMAK
(302
)
 
(671
)
Total deferred tax liabilities
$
(32,399
)
 
$
(26,955
)
 
 
 
 
Deferred tax assets:
 
 
 
Net operating loss carryforward
11,685

 
9,073

Intangible assets
3,699

 

Operating lease liability
2,838

 

Stock-based compensation
1,093

 
954

Foreign tax credit
891

 
802

Accounts receivable
240

 
238

Mineral interests
226

 
226

Interest expense carryforward
211

 

General business credit
140

 

Inventory
111

 
133

Post-retirement benefits
71

 
79

Charitable contributions
45

 

Gross deferred tax assets
21,250

 
11,505

Valuation allowance
(226
)
 
(226
)
Total net deferred tax assets
$
21,024

 
$
11,279

Net deferred tax liabilities
$
(11,375
)
 
$
(15,676
)