Note 15 - Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

15.  Income Taxes:

The components of the Company’s provision (benefit) for income taxes from continuing operations were as follows:

	As of December 31,
(in thousands)	2012			2011		2010
Current:
Federal	$	8,058		$	4,375	$	(1,831	)
State and local		1,021			115		(65	)
		9,079			4,490		(1,896	)
Deferred		(1,217	)		8,025		3,561
Income tax provision	$	7,862		$	12,515	$	1,665

The components of the Company’s deferred income taxes at December 31 are as follows:

(in thousands)	2012			2011
Deferred tax assets:
Inventory (excluding LIFO reserve)	$	2,039		$	1,674
Net operating loss and tax credit carryforwards		3,167			3,481
Allowance for doubtful accounts		615			664
Accrued expenses		7,592			6,289
Other		102			450
		13,515			12,558
Valuation reserve		(1,200	)		(401	)
Total deferred tax assets		12,315			12,157
Deferred tax liabilities:
LIFO reserve		(5,417	)		(6,358	)
Property and equipment		(26,962	)		(26,534	)
Intangibles		(15,416	)		(15,874	)
Other		-			(450	)
Total deferred tax liabilities		(47,795	)		(49,216	)
Deferred tax liabilities, net	$	(35,480	)	$	(37,059	)

The deferred tax liability decreased by $362 related to the interest rate swap.

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:

(in thousands)	2012			2011			2010
Balance as of January 1	$	75		$	2,005		$	2,190
Decreases related to prior year tax positions		-			-			(158	)
Increases related to current year tax positions		61			24			24
Decreases related to lapsing of statute of limitations		(24	)		(1,954	)		(51	)
Balance as of December 31	$	112		$	75		$	2,005

It is expected that the amount of unrecognized tax benefits will not materially change in the next twelve months.  The tax years 2009 through 2011 remain open to examination by major taxing jurisdictions to which the Company is subject.

The Company recognized interest related to uncertain tax positions in income tax expense.  As of December 31, 2012 and December 31, 2011, the Company had approximately $5 and $9 of gross accrued interest related to uncertain tax positions, respectively.

The following table reconciles the U.S. federal statutory rate to the Company’s effective tax rate:

	2012			2011			2010
U.S. federal statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		6.9	%		4.1	%		1.3	%
Goodwill impairment		22.7	%		-			-
Valuation allowance		8.5	%		-			-
Sec. 199 manufacturing deduction		(4.7	%)		(1.0	%)		-
Meals and entertainment		4.5	%		1.2	%		5.0	%
Change in unrecognized tax benefits		-			(5.8	%)		2.1	%
All other, net		4.6	%		(0.1	%)		0.5	%
Effective income tax rate		77.5	%		33.4	%		43.9	%

Taxes paid (refunded) in 2012, 2011 and 2010 totaled $6,940, $9,159 and ($36,355), respectively. Some subsidiaries of the Company’s consolidated group file state tax returns on a separate company basis and have state net operating loss carryforwards expiring over the next seven to 20 years.  A valuation allowance is recorded to reduce certain deferred tax assets to the amount that is more likely than not to be realized.