Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income (loss) before income taxes, as shown in the accompanying Consolidated Statements of Operations, includes the following components for the years ended December 31, 2019 and 2018:


	Year Ended December 31,
	2019		2018
Domestic	$	12,230	$	(34,608)
Foreign	5,167		7,897
Income (loss) from operations, before income taxes	$	17,397	$	(26,711)

Significant Components of Income Tax

Significant components of the provision for income taxes for the years ended December 31, 2019 and 2018 were as follows:


	Year Ended December 31,
	2019		2018
Current:
Federal	$	1,909	$	2,208
State	505		172
Foreign	1,925		3,675
Total current	4,339		6,055
Deferred:
Federal	(22,835)		(55)
State	(6,173)		(8)
Foreign	(502)		(1,535)
Total deferred	(29,510)		(1,598)
Total income tax (benefit) expense	$	(25,171)	$	4,457

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, 2019 and 2018 is as follows:


	Year Ended December 31,
	2019						2018
	Amount		Percent		Amount		Percent
Statutory rate	$	3,653	21.0	%	$	(5,609)	21.0	%
Foreign tax rate differential	129		0.7		156		(0.6)
State income taxes, net of federal benefit	(59)		(0.3)		(706)		2.6

Non-deductible expenses	345		2.0		261		(1.0)



Global intangible low-taxed income, net of tax credits	145		0.8		171		(0.6)
Income tax credits	(126)		(0.7)		(633)		2.4
Nondeductible executive compensation	234		1.3		351		(1.3)
Tax on unremitted foreign earnings	216		1.2		149		(0.6)
Change in valuation allowance	(29,635)		(170.3)		10,226		(38.3)
Other	(73)		(0.4)		91		(0.3)
Total income tax (benefit) expense / Effective rate	$	(25,171)	(144.7)	%	$	4,457	(16.7)	%

Significant Components of Deferred Tax Asset and Liability

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows:


	December 31,
	2019			2018
Deferred tax assets:
Goodwill and other intangibles	$	17,028	33	$	18,756
Accrued settlement	10,196			11,933
Deferred compensation	3,620			2,940
Contingent liabilities	1,816			1,663
Net operating loss / tax credit carryforwards	1,438			1,602
Pension and post-retirement liability	1,414			1,524
Warranty reserve	294			346
Accounts receivable	261			214
Other	725			644
Total deferred tax assets	36,792			39,622
Less: valuation allowance	(1,072)			(30,707)
Net deferred tax assets	35,720			8,915
Deferred tax liabilities:
Goodwill and other intangibles	(4,454)			(5,020)
Depreciation	(5,946)			(6,625)
Inventories	(946)			(2,125)
Unremitted earnings of foreign subsidiaries	(390)			(160)
Other	(97)			(272)
Total deferred tax liabilities	(11,833)			(14,202)
Net deferred tax assets (liabilities)	$	23,887		$	(5,287)

Reconciliation of Unrealized tax Benefits

The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2019 and 2018:


	December 31,
	2019		2018
Unrecognized tax benefits at beginning of period:	$	481	$	599

Decreases based on tax positions for prior periods	(67)		(118)

Balance at end of period	$	414	$	481