Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense is composed of the following:



	Year Ended December 31,
	2018		2017			2016
Current:
Federal	$	8,844	$	14,020		$	12,637
State	1,317		379			342
	10,161		14,399			12,979
Deferred:
Federal	55		(3,764		)	(254		)
State	1,480		300			808
	1,535		(3,464		)	554
Total	$	11,696	$	10,935		$	13,533

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 is below:



	Year Ended December 31,
	2018			2017			2016
"Expected" provision at federal statutory rate	$	10,286		$	18,465		$	15,651
State income taxes, net^(a)	2,029			1,612			1,672
Change in valuation allowance	1,304			(578		)	(718		)
Domestic production activity deduction	—			(957		)	(1,247		)
Share-based compensation^(a)	(1,201		)	(4,254		)	(1,408		)
Compensation limits	—			931			—
Federal and state tax credits	(807		)	(1,058		)	(1,065		)
Tax benefit from the Tax Act	—			(3,343		)	—
Other	85			117			648
Income tax expense	$	11,696		$	10,935		$	13,533
Effective tax rate	23.9		%	20.7		%	30.3		%


^(a)	The Company received federal excess tax benefits on share-based compensation awards in 2018, 2017, and 2016 of $1,201, $4,254, and $1,408, respectively, and state benefits of $236, $371 and $163, respectively, for excess tax benefits. The state benefits are part of the State income taxes, net, balances in the above table.

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,
	2018			2017
Deferred income tax assets:
Post-retirement liability	$	770		$	910
Deferred income	393			543
Share-based compensation	1,581			1,158
Capital loss carryforwards	379			—
State tax credit carryforwards	3,245			3,488
State operating loss carryforwards	1,505			1,434
Inventories	1,476			1,346
Other	1,231			766
Gross deferred income tax assets	$	10,580		$	9,645
Less: valuation allowance	(1,452		)	(148		)
Net deferred income tax assets	9,128			9,497
Deferred income tax liabilities:
Fixed assets	(10,497		)	(9,255		)
Other	(308		)	(254		)
Gross deferred income tax liabilities	(10,805		)	(9,509		)
Net deferred income tax liability	$	(1,677	)	$	(12	)

Summary of Valuation Allowance

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



	Valuation allowance
Balance at December 31, 2016	$	726
Decrease	(578		)
Balance at December 31, 2017	$	148
Increase	1,304
Balance at December 31, 2018	$	1,452

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 2018, 2017, and 2016:



	Year Ended December 31,
	2018			2017		2016
Beginning of year balance	$	185		$	43	$	613
Additions based on prior year tax positions	2			130		2
Additions based on current year tax positions	11			12		21
Reduction for prior year tax positions	(5		)	—		(48		)
Reductions for settlements	—			—		(545		)
End of year balance	$	193		$	185	$	43