Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Domestic	$	3,495	$	11,565	$	6,230
Foreign		8,349		1,779		(3,733	)
	$	11,844	$	13,344	$	2,497

Schedule of Income Tax Provision

Income tax expense (benefit) consisted of the following for the years ended December 31:

(table only in thousands)	2020			2019			2018
Current:
Federal	$	(239	)	$	(4,526	)	$	5,166
State		241			(616	)		1,660
Foreign		2,632			1,719			2,834
		2,634			(3,423	)		9,660
Deferred:
Federal		1,638			(604	)		1,144
State		313			(220	)		56
Foreign		(913	)		(116	)		(1,242	)
		1,038			(940	)		(42	)
	$	3,672		$	(4,363	)	$	9,618

The income tax expense (benefit) differs from the statutory rate due to the following:

(table only in thousands)	2020			2019			2018
Tax expense at statutory rate	$	2,487		$	2,802		$	524
Increase (decrease) in tax resulting from:
State income tax, net of federal benefit		503			(707	)		1,337
Change in uncertain tax position reserves		(115	)		(236	)		73
Permanent differences related to divestitures		—			(4,201	)		7,048
Other permanent differences		601			(842	)		693
Impact of rate differences and adjustments		101			884			57
United States tax credits and incentives		153			(2,124	)		(354	)
Foreign tax credits and incentives		(794	)		(1,386	)		(1,088	)
Change in valuation allowance		(218	)		198			1,521
Net deemed distribution on repatriation of foreign earnings		—			—			(1,713	)
Foreign withholding taxes on repatriation of foreign earnings		242			646			666
Earnout expense (income)		293			—			(69	)
Investment in joint venture		(1,341	)		—			—
Net effect GILTI and FDII		1,598			399			(172	)
Other		162			204			1,095
	$	3,672		$	(4,363	)	$	9,618

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. The net deferred tax liabilities consisted of the following at December 31:

(table only in thousands)	2020			2019
Gross deferred tax assets:
Accrued expenses	$	731		$	1,167
Reserves on assets		1,777			1,566
Share-based compensation awards		334			410
Minimum pension		2,188			1,946
Net operating loss carry-forwards		3,531			3,141
Tax credit carry-forwards		2,518			2,940
Investment in joint venture		1,505			—
Other		645			371
Depreciation		—			140
Leases		2,556			2,999
Valuation allowances		(5,965	)		(5,810	)
	$	9,820		$	8,870
Gross deferred tax liabilities:
Depreciation		(1,159	)		—
Goodwill and intangibles		(11,565	)		(9,855	)
Prepaid expenses and inventory		(438	)		(554	)
Withholding tax on unremitted foreign earnings		(871	)		(646	)
Leases		(2,602	)		(3,010	)
Revenue recognition		(155	)		(748	)
		(16,790	)		(14,813	)
Net deferred tax liabilities	$	(6,970	)	$	(5,943	)

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:

(table only in thousands)	2020			2019
Balance as of January 1,	$	254		$	939
Additions for tax positions taken in prior years		2			4
Reductions of tax positions taken in prior years		(117	)		(240	)
Reductions for settlements on tax positions of prior years		—			(449	)
Balance as of December 31,	$	139		$	254