Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense is composed of the following:



	Year Ended December 31,
	2017			2016			2015
Current:
Federal	$	14,020		$	12,637		$	8,954
State	379			342			1,003
	14,399			12,979			9,957
Deferred:
Federal	(3,764		)	(254		)	3,174
State	300			808			(904		)
	(3,464		)	554			2,270
Total	$	10,935		$	13,533		$	12,227

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense at the normal statutory federal rate to income tax expense included in the accompanying Consolidated Statements of Income:



	Year Ended December 31,
	2017			2016			2015
"Expected" provision at federal statutory rate	$	18,465		$	15,651		$	13,446
State income taxes, net	1,612			1,672			1,714
Change in valuation allowance	(578		)	(718		)	(2,385		)
Domestic production activity deduction	(957		)	(1,247		)	(1,002		)
Share-based compensation^(a)	(4,254		)	(1,408		)	N/A
Compensation limits	931			—			—
Federal and state tax credits	(1,058		)	(1,065		)	—
Tax benefit from the Tax Act	(3,343		)	—			—
Other	117			648			454
Income tax expense	$	10,935		$	13,533		$	12,227
Effective tax rate	20.7		%	30.3		%	31.8		%

^(a)

The Company elected to early adopt ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, in the quarter ended September 30, 2016 and, due to a required change in accounting principle, beginning that quarter, all excess tax benefits and deficiencies related to employee stock compensation are recognized within income tax expense in the Consolidated Statements of Income. The Company received federal tax benefits in 2017 and 2016 of $4,254 and $1,408, respectively, and state benefits of $371 and $163, respectively, for excess tax benefits

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences giving rise to deferred income taxes shown on the Consolidated Balance Sheets are as follows:



	December 31,
	2017			2016
Deferred income tax assets:
Post-retirement liability	$	910		$	1,621
Deferred income	543			1,176
Share-based compensation	1,158			1,313
Capital loss carryforwards	—			716
State tax credit carryforwards	3,488			3,204
State operating loss carryforwards	1,434			1,151
Inventories	1,346			2,560
Other	766			1,381
Gross deferred income tax assets	$	9,645		$	13,122
Less: valuation allowance	(148		)	(726		)
Net deferred income tax assets	9,497			12,396
Deferred income tax liabilities:
Fixed assets	(9,255		)	(14,313		)
Equity method investments	—			(969		)
Other	(254		)	(546		)
Gross deferred income tax liabilities	(9,509		)	(15,828		)
Net deferred income tax liability	$	(12	)	$	(3,432	)

Summary of Valuation Allowance

A schedule of the change in valuation allowance is as follows:



	Valuation allowance
Balance at December 31, 2015	$	1,444
Reductions	718
Balance at December 31, 2016	$	726
Reductions	578
Balance at December 31, 2017	$	148

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the total amount of unrecognized tax benefits (excluding interest and penalties) for 2017, 2016, and 2015:



	Year Ended December 31,
	2017		2016			2015
Beginning of year balance	$	43	$	613		$	613
Additions for tax positions of prior years	130		2			—
Additions for tax positions of the current year	12		21			—
Reduction for prior year tax positions	—		(48		)	—
Reductions for settlements	—		(545		)	—
End of year balance	$	185	$	43		$	613