Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. Intercompany items have been eliminated in consolidation. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and filed with the Securities and Exchange Commission. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods indicated. The results of operations for any interim period are not necessarily indicative of results to be expected for the full year.

We refer to the condensed consolidated financial statements collectively as “financial statements,” and individually as “statements of comprehensive income,” “balance sheets,” “statements of shareholders’ equity,” and “statements of cash flows” herein.

Restatement of Previously Issued Financial Statements [Policy Text Block]

Restatement of Previously Issued Financial Statements

Subsequent to the filing of its Form 10-Q, the Company identified an error in its accounting for income taxes associated with the termination of the Company’s two qualified defined benefit pension plans in the second quarter 2021. Specifically, management and the Audit Committee concluded that deferred tax liabilities on the Company’s balance sheet related to previous contributions to the pension plans in excess of book expense recognized should have been reversed when the Company recognized the $6.9 million pension termination charge in the second quarter 2021. The impact of this reversal on the Company’s: 

•     statement of comprehensive income for the nine months ended September 30, 2021 is an additional tax benefit of approximately $1.8 million, and

•     balance sheet as of September 30, 2021 is an increase in deferred tax assets of approximately $0.4 million and a decrease in deferred tax liabilities of approximately $1.4 million.

With corresponding impacts on the statement of cash flows and statements of shareholders’ equity. Each of these adjustments is a non-cash item.

The following tables summarize the effects of the restatement on the statement of comprehensive income for the nine months ended September 30, 2021, balance sheet as of September 30, 2021, statement of cash flows for the nine months ended September 30, 2021 and statements of shareholders’ equity for the three and nine months ended September 30, 2021 (in thousands, except per share data):

	Nine Months Ended September 30, 2021
	As Previously Reported		Restated Adjustment			As Restated
Income tax expense	$	5,490	$	(1,800	)	$	3,690
Net income		23,251		1,800			25,051
Comprehensive income		29,664		1,800			31,464
Net income per basic share		1.51		0.12			1.63
Net income per diluted share		1.45		0.11			1.56

	As of September 30, 2021
	As Previously Reported		Restated Adjustment			As Restated
Deferred tax asset	$	-	$	352		$	352
Total assets		422,177		352			422,529
Deferred tax liability		1,448		(1,448	)		-
Retained earnings		159,711		1,800			161,511
Total shareholders’ equity		220,935		1,800			222,735
Total liabilities and shareholders’ equity		422,177		352			422,529

	Nine Months Ended September 30, 2021
	As Previously Reported			Restated Adjustment			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	23,251		$	1,800		$	25,051
Deferred income tax benefit		(1,127	)		(1,800	)		(2,927	)

	Three Months Ended September 30, 2021
	As Previously Reported		Restated Adjustment		As Restated
Balance, July 1, 2021:
Retained earnings	$	153,412	$	1,800	$	155,212
Total shareholders’ equity		213,515		1,800		215,315
Balance, September 30, 2021:
Retained earnings		159,711		1,800		161,511
Total shareholders’ equity		220,935		1,800		222,735

	Nine Months Ended September 30, 2021
	As Previously Reported		Restated Adjustment		As Restated
Net earnings:
Retained earnings	$	23,251	$	1,800	$	25,051
Total shareholders’ equity		23,251		1,800		25,051
Balance, September 30, 2021:
Retained earnings		159,711		1,800		161,511
Total shareholders’ equity		220,935		1,800		222,735

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable.

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting of Income Taxes”, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. On January 1, 2021, the Company adopted this standard on a prospective basis. The Company’s adoption of this standard did not have a material impact on its financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326).” The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).” The update delayed the effective date of ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)” for Smaller Reporting Companies until fiscal years beginning after December 15, 2022. Adoption will require a modified retrospective approach beginning with the earliest period presented. The Company is currently evaluating the potential impact this standard will have on its financial statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and LIBOR. This guidance includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This guidance may be applied through December 31, 2022. The Company will apply this guidance to transactions and modifications to contracts and hedging relationships that reference LIBOR.