TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

A breakdown of our income tax expense (benefit) for the years ended December 31 is as follows:


($ in thousands)		2019		2018
Federal:
Current	$	3,706	$	2,449
Deferred		336		475
Total Federal		4,042		2,924

State & local:
Current		497		205
Deferred		(8)		142
Total State & local		489		347

Foreign
Current		238		75
Deferred		-		-
Total Foreign		238		75

Total	$	4,769	$	3,346

Reconciliation of Federal Income Tax Expense

A reconciliation of recorded Federal income tax expense to the expected expense computed by applying the applicable Federal statutory rate for all periods to income before income taxes follows:



		Years Ended December 31,
($ in thousands)		2019		2018
Expected expense at statutory rate (21% in 2019, 21% in 2018)	$	4,682	$	3,766

Increase (decrease) in income taxes resulting from:
Toll tax on CFC accumulated earnings and profits		-		(561)
Exempt income from Dominican Republic operations due to tax holiday		(821)		(1,005)
GILTI tax		410		515
Impact of Canadian deemed dividend		-		-
State and local income taxes		369		313
Foreign Tax Credit/Expense		(278)		-
Meals and entertainment		48		43
Nondeductible penalties		-		1
Provision to return filing adjustments and other		359		274
Total	$	4,769	$	3,346

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes recorded in the Consolidated Balance Sheets at December 31, 2019 and 2018 consist of the following:


($ in thousands)		2019		2018
Deferred tax assets:
Asset reserves and accrued expenses	$	526	$	805
Inventories		471		508
State and local income taxes		192		238
Pension and deferred compensation		27		37
Net operating losses		388		424
Total deferred tax assets		1,604		2,012
Valuation allowances		(372)		(421)
Total deferred tax assets		1,232		1,591

Deferred tax liabilities:
Fixed assets		1,519		1,509
Intangible assets		6,756		6,883
Other assets		231		213
Tollgate tax on Lifestyle earnings		228		228
State and local income taxes		606		538
Total deferred tax liabilities		9,340		9,371

Net deferred tax liability	$	8,108	$	7,780

Schedule of Income Tax Examinations

We are subject to tax examinations in various taxing jurisdictions. The earliest exam years open for examination are as follows:


		Earliest Exam Year
Taxing Authority Jurisdiction:
U.S. Federal		2016
Various U.S. States		2015
Puerto Rico (U.S. Territory)		2014
Canada		2014