Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income (loss) before income taxes, as shown in the accompanying Consolidated Statements of Operations, includes the following components for the years ended December 31, 2020, 2019, and 2018:


	Year Ended December 31,
	2020		2019		2018
Domestic	$	9,618	$	18,972	$	(32,466)
Foreign	4,364		5,167		7,897
Income (loss) from operations, before income taxes	$	13,982	$	24,139	$	(24,569)

Significant Components of Income Tax

Significant components of the provision for income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows:


	Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	(9,506)	$	4,012	$	3,807
State	130		620		133
Foreign	1,852		1,925		3,675
Total current	(7,524)		6,557		7,615
Deferred:
Federal	(292)		(23,661)		(55)
State	(3,458)		(6,229)		(8)
Foreign	(567)		(502)		(1535)
Total deferred	(4,317)		(30,392)		(1,598)
Total income tax (benefit) expense	$	(11,841)	$	(23,835)	$	6,017

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, 2020, 2019, and 2018 is as follows:


	Year Ended December 31,
	2020				2019				2018
	Amount		Percent		Amount		Percent		Amount		Percent
Statutory rate	$	2,936	21.0	%	$	5,069	21.0	%	$	(5,159)	21.0	%
Foreign tax rate differential	65		0.5		129		0.5		156		(0.6)
State income taxes, net of federal benefit	1,003		7.2		83		0.3		(700)		2.8

Non-deductible expenses	181		1.3		278		1.2		219		(0.9)
Tax benefits related to disposition of the Test and Inspection Services business	(16,282)		(116.4)		—		—		—		—


Global intangible low-taxed income, net of tax credits	621		4.4		145		0.6		171		(0.7)
Income tax credits	(1,357)		(9.7)		(126)		(0.5)		(633)		2.6
Nondeductible executive compensation	132		0.9		234		1.0		351		(1.4)
Tax on unremitted foreign earnings	174		1.2		216		0.9		149		(0.6)
Change in valuation allowance	731		5.2		(29,966)		(124.1)		11,400		(46.4)
Other	(45)		(0.3)		103		0.4		63		(0.3)
Total income tax (benefit) expense / Effective rate	$	(11,841)	(84.7)	%	$	(23,835)	(98.7)	%	$	6,017	(24.5)	%

Significant Components of Deferred Tax Asset and Liability

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows:


	December 31,
	2020		2019
Deferred tax assets:
Goodwill and other intangibles	$	7,857	$	8,782
Accrued settlement	8,112		10,196
Deferred compensation	2,351		3,620
Contingent liabilities	649		786
Net operating loss / tax credit carryforwards	25,123		1,118
Pension and post-retirement liability	1,696		1,414
Inventories	1,529		1,118
Warranty reserve	297		294
Accounts receivable	214		254
Other	709		585
Total deferred tax assets	48,537		28,167
Less: valuation allowance	(1,483)		(752)
Net deferred tax assets	47,054		27,415
Deferred tax liabilities:
Goodwill and other intangibles	(4,116)		(4,454)
Depreciation	(7,140)		(5,638)
Inventory § 481(a) adjustment	(1,027)		(2,065)
Unremitted earnings of foreign subsidiaries	(200)		(390)
Other	(175)		(97)
Total deferred tax liabilities	(12,658)		(12,644)
Net deferred tax assets	$	34,396	$	14,771

Reconciliation of Unrealized tax Benefits

The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2020 and 2019:


	December 31,
	2020		2019
Unrecognized tax benefits at beginning of period:	$	414	$	481

Decreases based on tax positions for prior periods	(5)		(67)

Balance at end of period	$	409	$	414