Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes was generated in the United States and globally as follows:

(Table only in thousands)	2017			2016			2015
Domestic	$	3,891		$	(39,623	)	$	997
Foreign		(2,482	)		6,659			(4,093	)
	$	1,409		$	(32,964	)	$	(3,096	)

Schedule of Income Tax Provision

Income tax provision consisted of the following for the years ended December 31:

(Table only in thousands)	2017			2016			2015
Current:
Federal	$	6,234		$	4,957		$	3,429
State		388			892			753
Foreign		939			3,191			1,944
		7,561			9,040			6,126
Deferred:
Federal		(2,479	)		(2,794	)		(3,012	)
State		114			(409	)		(563	)
Foreign		(758	)		(547	)		87
		(3,123	)		(3,750	)		(3,488	)
	$	4,438		$	5,290		$	2,638

The income tax provision differs from the statutory rate due to the following:

(Table only in thousands)	2017			2016			2015
Tax expense (benefit) at statutory rate	$	494		$	(11,525	)	$	(1,083	)
Increase (decrease) in tax resulting from:
State income tax, net of federal benefit		367			174			34
Domestic production activities deduction		(235	)		(561	)		(211	)
Intangible asset and goodwill impairment		1,789			17,859			—
Change in uncertain tax position reserves		465			(624	)		(1,281	)
Permanent differences		1,026			(31	)		1,162
Impact of rate differences and adjustments		(20	)		(1,655	)		(1,489	)
United States and foreign tax incentives		(240	)		(1,035	)		(883	)
Non-deductible transaction costs		—			7			1,356
Earnout (income) expense		(1,779	)		2,573			3,928
Change in valuation allowance		1,044			222			483
Audit settlements		—			—			65
Provision-to-return adjustments		(495	)		108			808
Revaluation of deferred tax assets and liabilities		(4,819	)		—			—
Net deemed dividend on repatriation of foreign earnings		6,426			—			—
Other		415			(222	)		(251	)
	$	4,438		$	5,290		$	2,638

Schedule of Net Deferred Tax Assets and Liabilities

Deferred income taxes reflect the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and tax credit carry forwards. As a result of the Tax Act, net deferred tax liabilities were remeasured as of December 31, 2017 based on a reasonable estimate of the effect of the change in the federal tax rate. The net deferred tax liabilities consisted of the following at December 31:

(Table only in thousands)	2017			2016
Gross deferred tax assets:
Accrued expenses and other	$	286		$	3
Reserves on assets		2,000			3,078
Share-based compensation awards		436			1,340
Minimum pension / post retirement		2,318			4,197
Net operating loss carry-forwards		3,471			5,932
Tax credit carry-forwards		1,634			1,634
Valuation allowances		(3,873	)		(3,135	)
		6,272			13,049
Gross deferred tax liabilities:
Depreciation		(448	)		(614	)
Goodwill and intangibles		(13,588	)		(23,060	)
Prepaid expenses and inventory		(585	)		(785	)
Revenue recognition		(1,861	)		(1,554	)
		(16,482	)		(26,013	)
Net deferred tax liabilities	$	(10,210	)	$	(12,964	)

Schedule of Reconciliation of Uncertain Tax Position

A reconciliation of the beginning and ending amount of uncertain tax position reserves included in other liabilities on the Consolidated Balance Sheets is as follows: