Income Taxes
All of our income is generated in the U.S. The components of income tax provision (benefit) were as follows (in thousands):
|
| | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2017 | | 2016 | | 2015 |
Current federal | | $ | (413 | ) | | $ | (378 | ) | | $ | 491 |
|
Current state | | 331 |
| | 32 |
| | 133 |
|
| | (82 | ) | | (346 | ) | | 624 |
|
| |
|
| |
|
| |
|
|
Deferred federal | | (5,368 | ) | | 285 |
| | 728 |
|
Deferred state | | (32 | ) | | 75 |
| | 148 |
|
| | (5,400 | ) | | 360 |
| | 876 |
|
| | $ | (5,482 | ) | | $ | 14 |
| | $ | 1,500 |
|
Income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes as follows (in thousands):
|
| | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2017 | | 2016 | | 2015 |
Provision at U.S. statutory rate | | $ | 1,374 |
| | $ | (104 | ) | | $ | 1,264 |
|
State taxes, net of federal benefit | | 189 |
| | 49 |
| | 182 |
|
Effect of tax rate change on deferred tax assets and liabilities | | (6,923 | ) | | — |
| | — |
|
Permanent differences, primarily meals and entertainment | | 180 |
| | 264 |
| | 250 |
|
Stock-based compensation | | (11 | ) | | (41 | ) | | — |
|
Domestic production activities deduction | | — |
| | (20 | ) | | (63 | ) |
Tax credits | | (291 | ) | | (134 | ) | | (133 | ) |
| | $ | (5,482 | ) | | $ | 14 |
| | $ | 1,500 |
|
Significant components of our deferred tax assets and liabilities were as follows (in thousands):
|
| | | | | | | | |
| | December 31, |
| | 2017 | | 2016 |
Deferred tax assets | | | | |
Net operating losses and tax credit carryforwards | | $ | 982 |
| | $ | 496 |
|
Accrued salaries and severance | | 1,127 |
| | 1,207 |
|
Other | | 1,497 |
| | 1,615 |
|
| | 3,606 |
| | 3,318 |
|
Deferred tax liabilities | | | | |
Property, equipment and leasehold improvements | | (12,287 | ) | | (15,194 | ) |
Intangible assets | | (4,054 | ) | | (6,112 | ) |
Other | | (151 | ) | | (193 | ) |
| | (16,492 | ) | | (21,499 | ) |
| | $ | (12,886 | ) | | $ | (18,181 | ) |
As of December 31, 2017, included in our net operating losses and tax credit carryforwards were the following (in thousands):
|
| | | |
State NOLs, tax effected | $ | 26 |
|
Federal NOLs, tax effected | 208 |
|
Federal employer FICA tips credit | 748 |
|
We also have an AMT credit carryforward of $340,000, which is refundable over the next five years pursuant to recently enacted tax legislation. As such, the carryforward is recognized as a tax receivable on our Consolidated Balance Sheets as of December 31, 2017.
In assessing the realizability of our deferred tax assets, we consider future taxable income expected to be generated by the projected differences between financial statement depreciation and tax depreciation, cumulative earnings generated to date and other evidence available to us. Based upon this consideration, we assessed that all of our deferred taxes are more likely than not to be realized, and, as such, we have not recorded a valuation allowance as of December 31, 2017 or 2016.
There were no unrecognized tax benefits as of December 31, 2017 or 2016 and we do not anticipate significant changes to our unrecognized tax benefits within the next twelve months.