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

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

INCOME TAXES

12 Months Ended

Dec. 31, 2015

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



	2015		2014
Deferred tax liabilities:
Property, plant and equipment	$	31,943	$	38,070
Prepaid insurance	1,209		1,310
Total deferred tax liabilities:	33,152		39,380
Deferred tax assets:
Employee benefits	924		951
Uncompleted contracts	3,321		391
Stock based compensation expense	825		43
Allowance for uncollectible accounts	16		1,261
Federal net operating loss	5,478		—
AMT tax credits	763		—
Total deferred tax assets:	11,327		2,646
Net deferred tax liabilities:	$	21,825	$	36,734

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



	2015			2014			2013
Current:
Federal	$	219		$	(105	)	$	—
State	473			459			254
Total current	692			354			254
Deferred:
Federal	(13,614		)	8,120			4,049
State	(447		)	30			—
Total deferred	(14,061		)	8,150			4,049
Income taxes	$	(13,369	)	$	8,504		$	4,303

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



	2015			%		2014			%		2013			%
U.S. statutory rate	$	(13,556	)	35.0	%	$	8,338		35.0	%	$	4,037		35.0	%
Increase (decrease) resulting from:
State income taxes	275			(0.7	)%	311			1.0	%	317			2.7	%
Qualified Production Activities	—			—	%	(21		)	(0.1	)%	—			—	%
Other	(88		)	0.2	%	(124		)	(0.2	)%	(51		)	(0.4	)%
Income tax (benefit) expense	$	(13,369	)	34.5	%	$	8,504		35.7	%	$	4,303		37.3	%