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, 2016

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



	2016		2015
Deferred tax liabilities:
Property, plant and equipment	$	27,468	$	31,943
Prepaid insurance	766		1,209
Total deferred tax liabilities:	28,234		33,152
Deferred tax assets:
Employee benefits	1,303		924
Uncompleted contracts	106		3,321
Stock based compensation expense	1,488		825
Allowance for uncollectible accounts	192		16
Long term incentive awards	264		—
Federal net operating loss	617		5,478
AMT credit carryforwards	1,030		763
Total deferred tax assets:	5,000		11,327
Net deferred tax liabilities:	$	23,234	$	21,825

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



	2016			2015			2014
Current:
Federal	$	302		$	219		$	(105	)
State	361			473			459
Total current	663			692			354
Deferred:
Federal	1,549			(13,614		)	8,120
State	(171		)	(447		)	30
Total deferred	1,378			(14,061		)	8,150
Income taxes	$	2,041		$	(13,369	)	$	8,504

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):



	2016		%	2015			%	2014			%
U.S. statutory rate	$	1,945	35.0%	$	(13,556	)	35.0%	$	8,338		35.0%
Increase (decrease) resulting from:
State income taxes	64		1.1%	275			(0.7)%	311			1.0%
Other	32		0.6%	(88		)	0.2%	(145		)	(0.3)%
Income tax (benefit) expense	$	2,041	36.7%	$	(13,369	)	34.5%	$	8,504		35.7%