| The accrued postretirement benefit cost as of December 31, 2001 and 2000 consists of the following (in thousands): |
 |
|
|
2001 |
2000 |
|
| Change in benefit obligation: |
|
Projected benefit obligation at |
|
|
end of prior year |
$ 5,234 |
$ 4,656 |
|
|
Service cost |
103 |
108 |
|
|
Interest cost |
404 |
389 |
|
|
Actuarial loss |
1,017 |
189 |
|
|
Acquisition |
140 |
575 |
|
|
Benefits paid |
(650) |
(683) |
|
|
Projected benefit obligation at |
|
|
end of year |
$ 6,248 |
$ 5,234 |
|
| Funded status |
$(6,248) |
$(5,234) |
| Unrecognized net loss |
1,954 |
966 |
|
| Net amount recognized |
$(4,294) |
$(4,268) |
|
| The accumulated postretirement benefit obligations at December 31, 2001 and 2000 were determined using a weighted average discount rate of 7.5 percent and 7.75 percent, respectively. The rate of increase in the costs of covered health care benefits is assumed to be 9.0 percent in 2001, decreasing 0.5 percent each year to 4.5 percent by the year 2010. Increasing the assumed health care costs trend rate by one percentage point would increase the accumulated postretirement benefit obligation as of December 31, 2001 by approximately $692,000 and would increase net periodic postretirement benefit cost by approximately $61,000 for the year ended December 31, 2001. |
9. Income Taxes
|
| The Company accounts for income taxes in accordance with SFAS No. 109, "Accounting for Income Taxes," which requires the use of the liability method of accounting for deferred income taxes.
The provision for income taxes for the years ended December 31, 2001, 2000 and 1999 consisted of the following (in thousands):
|
|
|
2001 |
2000 |
1999 |
|
| Current: |
|
|
|
|
Federal |
$(22,913) |
$2,650 |
$11,063 |
|
State |
1,199 |
3,056 |
3,081 |
|
|
|
(21,714) |
5,706 |
14,144 |
| Deferred |
15,811 |
(221) |
8,998 |
|
|
|
$ (5,903) |
$5,485 |
$23,142 |
|
|
| The principal differences between the federal statutory tax rate and the provision for income taxes for the years ended December 31, 2001, 2000 and 1999 are as follows: |
|
|
2001 |
2000 |
1999 |
|
| Federal statutory tax rate |
(35.0)% |
35.0% |
35.0% |
| State taxes, net of federal |
|
tax benefit |
(2.4) |
2.4 |
2.7 |
| Other |
4.3 |
2.8 |
(1.6) |
|
| Effective tax rate |
(33.1)% |
40.2% |
36.1% |
|
| Significant components of the Company's deferred income tax assets and liabilities as of December 31, 2001 and 2000 are summarized as follows (in thousands): |
|
|
|
2001 |
2000 |
|
| Deferred income tax assets: |
|
|
|
Deferred employee benefits |
$ 1,078 |
$ 1,258 |
|
Postretirement benefits other |
|
|
|
|
than pension |
810 |
879 |
|
Accounts receivable |
554 |
602 |
|
Insurance |
1,259 |
2,121 |
|
Tax loss carryforwards and credits |
11,934 |
15,484 |
|
Inventories |
2,261 |
1,498 |
|
Other |
3,348 |
3,006 |
|
|
|
Total deferred income tax assets |
21,244 |
24,848 |
|
| Deferred income tax liabilities: |
|
|
|
Depreciation and amortization |
(69,018) |
(63,866) |
|
Asset revaluation |
(3,846) |
(3,846) |
|
Postemployment benefits |
(5,060) |
(2,190) |
|
Losses on contractual sales |
|
|
|
|
commitments |
(4,244) |
(1,578) |
|
Other |
(42) |
(9) |
|
|
|
Total deferred income tax liabilities |
(82,210) |
(71,489) |
|
| Valuation allowance |
(5,794) |
(4,308) |
|
|
|
|
$(66,760) |
$(50,949) |
|
At December 31, 2001, the Company has state net operating losses of $9,339,000 which will expire in varying amounts between 2004 and 2021. The Company has a valuation allowance of $3,356,000 at December 31, 2001 for estimated future impairment related to the state net operating losses. The Company also has state tax credit carryforwards of approximately $2,595,000 which will expire in varying amounts between 2004 and 2016. The Company recorded a valuation allowance of $2,438,000 at December 31, 2001 for estimated future impairment related to the state tax credit carryforwards. |
|
10. Quarterly Financial Data (Unaudited)
|
| The following table sets forth certain quarterly financial data for the periods indicated (in thousands, except per share data): |
|
|
First |
Second |
Third |
Fourth |
|
|
Quarter |
Quarter |
Quarter |
Quarter |
|
| 2001: |
|
|
|
|
|
|
|
|
|
Sales |
$233,088 |
|
$229,759 |
|
$234,851 |
|
$215,988 |
|
|
Gross profit |
54,681 |
|
64,144 |
|
62,044 |
|
52,645 |
|
|
Net (loss) income |
(10,826) |
|
376 |
|
955 |
|
(5,107) |
|
|
Diluted (loss) income per common share |
$ (0.38) |
|
$ 0.01 |
|
$ 0.03 |
|
$ (0.18) |
|
|
|
|
|
|
|
|
|
|
|
| 2000: |
|
|
|
|
|
|
|
|
|
Sales |
$260,850 |
|
$268,631 |
|
$249,592 |
|
$235,542 |
|
|
Gross profit |
66,464 |
|
70,378 |
|
60,713 |
|
57,539 |
|
|
Net income (loss) |
|
|
9,486 |
|
(2,542) |
|
(930) |
|
|
Diluted income (loss) per common share |
$ 0.07 |
|
$ 0.37 |
|
$ (0.10) |
|
$ (0.03) |
|
|
