Page 21 - RosboroAR2018

Rosboro’s Glulam Team keep their ngers on the pulse of the construction industry, allowing the company to develop new and innovative solutions that solve builders’ problems. In 2018 the company launched four new glulam products that are resonating with the market.
The revolving line of credit had a maturity date of December 2021. Interest was paid monthly at either the reference rate plus 6.00% applicable margin or the LIBOR rate plus 5.75% applicable margin. The revolving line of credit had $2 million priced at the LIBOR rate plus 5.75% applicable margin and $1.5 million priced at the reference rate plus 6.00% applicable margin.
In accordance with authoritative accounting guidance, the Company has included unamortized issuance costs and a break fee from the credit agreements with Cerberus Business Finance, LLC totaling $4,280,000 on the 2017 income statement as a loss on extinguishment of debt.
NOTE 7
The Company’s income tax expense consists of the following for the years ended:
Current tax expense Deferred tax expense
The net deferred tax liability is comprised of the following as of:
Gross deferred tax assets
Gross deferred tax liabilities
The recorded deferred tax assets and liabilities generally
relate to the tax e ects of net operating losses and temporary di erences in nancial and income tax reporting of depreciation, amortization, and various payroll and payroll- related costs. At December 31, 2018, the Company had federal net operating loss carryforwards of $1,802,000 for federal and state net operating loss carryforwards of $1,728,000, which will begin expiring in 2036 if not utilized.
The Company’s 2018 and 2017 consolidated statements of income includes the impact of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”), which was signed into law on December 22, 2017. The new Tax Reform law included a reduction of the corporate federal income tax rate from 35% to 21%. The Company initially applied the newly enacted corporate federal income tax rate of 21% in calculating its net deferred tax liability as of December 31, 2017, which had the e ect of reducing its deferred tax expense and increasing net income by approximately $570,000.
The provision for income taxes generally di ers from the amount computed by applying the statutory federal income
tax rate to earnings before taxes primarily due to the e ects of the Tax Reform rate change described above, state taxes and non-deductible expenses.
The Company les income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. As of December 31, 2018 and 2017, there are no income tax-related accrued interest or penalties recorded in the consolidated nancial statements.
INCOME TAXES
The Company is a participant in a multiemployer de ned contribution plan. The Company’s collective bargaining agreement requires employer contributions to the plan at a rate between $.80 to $.95 per hour worked, increasing by $.05
per year through the duration of the agreement. Company contributions were approximately
$396,000 and $278,000 for the years ended December 31, 2018 and
2017, respectively.
The Company also maintains a separate 401(k) and pro t-
sharing plan that covers all eligible full-time
salaried employees.
NOTE 8
RETIREMENT & PROFIT SHARING PLANS
(IN THOUSANDS)
DEC. 31, 2018
165 3412
DEC. 31, 2017
$100 2,966
$3,577
$3,066
(IN THOUSANDS)
DEC. 31, 2018
$866
(5,569) $(4,703)
DEC. 31, 2017
$1,622
(2,913) $(1,291)
21 ANNUAL REPORT 2018