Income Taxes |
Note
4—Income Taxes
Income tax
expense consisted of the following:
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$ in
thousands
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2015 |
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2014 |
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2013 |
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Current tax
expense:
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Federal
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$ |
759 |
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$ |
907 |
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$ |
941 |
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State and
local
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151 |
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168 |
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184 |
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Foreign
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1,348 |
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917 |
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791 |
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Total current tax
expense
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2,258 |
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1,992 |
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1,916 |
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Deferred tax expense
(benefit):
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Federal
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(187) |
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27 |
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(346) |
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State and
local
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(70) |
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26 |
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(24) |
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Foreign
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(256) |
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(62) |
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(6) |
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Total deferred tax
benefit
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(513) |
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(9) |
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(376) |
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Net income tax
expense
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$ |
1,745 |
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$ |
1,983 |
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$ |
1,540 |
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The reasons
for the differences between the above net income tax expense and
the amounts computed by applying the statutory federal income tax
rates to earnings before income taxes are as follows:
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$ in
thousands
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2015 |
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2014 |
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2013 |
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Income tax expense at
statutory rate
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$ |
1,831 |
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$ |
2,035 |
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$ |
1,775 |
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State and local taxes,
net of federal income tax benefit (expense)
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97 |
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165 |
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128 |
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Tax credits (state, net
of federal benefit)
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(157) |
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(134) |
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(118) |
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Effects of differing US
and foreign tax rates
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47 |
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(30) |
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(106) |
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Decrease in valuation
allowance
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(40) |
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(9) |
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(14) |
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Other items,
net
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(33) |
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(44) |
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(125) |
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Net income tax
expense
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$ |
1,745 |
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$ |
1,983 |
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$ |
1,540 |
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Significant
items comprising deferred tax assets and liabilities as of
April 30 were as follows:
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$ in
thousands
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2015 |
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2014 |
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Deferred tax
assets:
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Accrued employee benefit
expenses
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$ |
535 |
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$ |
462 |
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Allowance for doubtful
accounts
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53 |
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68 |
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Deferred
compensation
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1,573 |
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1,432 |
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Tax credits
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237 |
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304 |
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Unrecognized actuarial
loss, defined benefit plans
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4,206 |
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3,486 |
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Other
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354 |
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98 |
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Total deferred tax
assets
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6,958 |
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5,850 |
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Deferred tax
liabilities:
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Book basis in excess of
tax basis of property, plant and equipment
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(1,594) |
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(1,826) |
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Prepaid
pension
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(2,164) |
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(2,098) |
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Other
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134 |
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155 |
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Total deferred tax
liabilities
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(3,624) |
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(3,769) |
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Less: valuation
allowance
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(10) |
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(50) |
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Net deferred tax
assets
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$ |
3,324 |
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$ |
2,031 |
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Deferred tax assets
classified in the balance sheet:
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Current
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$ |
856 |
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$ |
646 |
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Non-current
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2,468 |
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1,385 |
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Net deferred tax assets
(liabilities)
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$ |
3,324 |
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$ |
2,031 |
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At
April 30, 2015, the Company had state tax credit carryforwards
in the amount of $237,000, net of federal benefit, expiring
beginning in 2016. After a review of the expiration schedule of the
tax credits and future taxable income required to utilize such
credits before their expiration, a valuation allowance of $10,000
and $50,000 was recorded at April 30, 2015 and 2014,
respectively.
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