Gulf Island Fabrication, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands):


	2012		2011
Deferred tax liabilities:
Property, plant and equipment	$	37,721	$	37,149

		37,721		37,149
Deferred tax assets:
Employee benefits		588		409
Uncompleted contracts		3,472		17
Stock based compensation expense		126		216
Allowance for uncollectible accounts		5,107		—
Federal net operating loss		3,608		9,292
Other		138		223

Total deferred tax assets:		13,039		10,157

Net deferred tax liabilities:	$	24,682	$	26,992

Components of Income Tax Expense

Significant components of income tax expense for the years ended December 31 were as follows (in thousands):


	2012			2011			2010
Current:
Federal	$	—		$	—		$	4,496
State		534			239			406

Total current		534			239			4,902

Deferred:
Federal		(1,749	)		(828	)		3,085
State		(99	)		(55	)		279

Total deferred		(1,848	)		(883	)		3,364

Income taxes	$	(1,314	)	$	(644	)	$	8,266

Reconciliation of Income Tax

A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax expense for the years ended December 31 is as follows (in thousands):


	2012			%			2011			%			2010			%
U.S. statutory rate	$	(1,892	)		35.0	%	$	(857	)		35.0	%	$	7,476			35.0	%
Increase (decrease) resulting from:
State income taxes		783			(14.5	)		289			(11.8	)		893			4.2
Qualified Production Activities
Income—Deduction		—			—			—			—			(205	)		(1.0	)
Federal Work Opportunity Tax Credit		—			—			—			—			—			—
Other		(205	)		3.8			(76	)		3.1			102			0.5

Income tax expense	$	(1,314	)		24.3	%	$	(644	)		26.3	%	$	8,266			38.7	%