Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income before income taxes, as shown in the accompanying Consolidated Statements of Operations, includes the following components for the years ended December 31, 2018 and 2017:


	Year Ended December 31,
	2018		2017
Domestic	$	(34,608)	$	4,081
Foreign	7,897		5,970
(Loss) income from operations, before income taxes	$	(26,711)	$	10,051

Significant Components of Income Tax

Significant components of the provision for income taxes for the years ended December 31, 2018 and 2017 are as follows:


	Year Ended December 31,
	2018		2017
Current:
Federal	$	2,208	$	2,630
State	172		822
Foreign	3,675		2,460
Total current	6,055		5,912
Deferred:
Federal	(55)		(798)
State	(8)		17
Foreign	(1,535)		(441)
Total deferred	(1,598)		(1,222)
Total income tax expense	$	4,457	$	4,690

Reconciliation of Statutory Income to Income Tax Expense

The reconciliation of income tax computed at statutory rates to income tax expense for the years ended December 31, 2018 and 2017 is as follows:


	Year Ended December 31,
	2018						2017
	Amount		Percent		Amount		Percent
Statutory rate	$	(5,609)	21.0	%	$	3,518	35.0	%
Foreign tax rate differential	156		(0.6)		(641)		(6.4)
State income taxes, net of federal benefit	(706)		2.6		368		3.7

Non-deductible expenses	261		(1.0)		323		3.2
Domestic production activities deduction	—		—		(405)		(4.0)
U.S. Tax Cuts and Jobs Act: remeasurement of deferred taxes	—		—		9,573		95.2
U.S. Tax Cuts and Jobs Act: deferred foreign earnings	—		—		4,009		39.9
Global intangible low-taxed income, net of tax credits	171		(0.6)		—		—
Income tax credits	(633)		2.4		(123)		(1.2)
Nondeductible executive compensation	351		(1.3)		—		—
Tax on unremitted foreign earnings	149		(0.6)		(6,712)		(66.8)
Change in valuation allowance	10,226		(38.3)		(5,354)		(53.3)
Other	91		(0.3)		134		1.3
Total income tax expense / Effective rate	$	4,457	(16.7)	%	$	4,690	46.7	%

Significant Components of Deferred Tax Asset and Liability

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:


	December 31,
	2018		2017
Deferred tax assets:
Goodwill and other intangibles	$	18,756	$	19,324
Accrued settlement	11,933		—
Pension and post-retirement liability	1,524		1,532
Warranty reserve	346		2,060
Deferred compensation	2,940		2,385
Contingent liabilities	1,663		1,669
Net operating loss / tax credit carryforwards	1,602		1,816
Other	858		1,442
Total deferred tax assets	39,622		30,228
Less: valuation allowance	(30,707)		(19,553)
Net deferred tax assets	8,915		10,675
Deferred tax liabilities:
Goodwill and other intangibles	(5,020)		(5,721)
Depreciation	(6,625)		(7,079)
Unremitted earnings of foreign subsidiaries	(160)		(1,220)
Inventories	(2,125)		(3,056)
Other	(272)		(513)
Total deferred tax liabilities	(14,202)		(17,589)
Net deferred tax liabilities	$	(5,287)	$	(6,914)

Reconciliation of Unrealized tax Benefits

The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2018 and 2017:


	December 31,
	2018		2017
Unrecognized tax benefits at beginning of period:	$	599	$	619
Increases based on tax positions for prior periods	—		—
Decreases based on tax positions for prior periods	(118)		(20)

Balance at end of period	$	481	$	599