Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows:



	Year Ended December 31,
In thousands	2018			2017
Current
Federal	$	(18,194	)	$	348
State and local	314			245
Foreign	1,413			472
Total current	$	(16,467	)	$	1,065

Deferred
Federal	$	(470	)	$	(9,886	)
State and local	(181		)	(747		)
Foreign	(994		)	(326		)
Total deferred	$	(1,645	)	$	(10,959	)

Total income tax benefit	$	(18,112	)	$	(9,894	)

Schedule of components of income from continuing operations before income taxes

The U.S. and foreign components of income (loss) before income taxes were as follows:



	Year Ended December 31,
In thousands	2018			2017
United States	$	(4,873	)	$	(49,731	)
Foreign	4,311			(2,023		)
Total loss from operations before income taxes	$	(562	)	$	(51,754	)

Schedule of difference between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate

The differences between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% for 2018 and 35% for 2017 to income (loss) before income taxes were as follows:



	Year Ended December 31,
In thousands	2018			2017
Computed expected income tax benefit	$	(118	)	$	(18,114	)
Goodwill impairment basis difference	—			6,000
Basis difference on sale of 3Q Digital	(11,937		)	—
Net effect of state income taxes	(388		)	(559		)
Foreign subsidiary dividend inclusions	2,781			440
Foreign tax rate differential	189			187
Change in valuation allowance due to tax reform	—			(13,821		)
Change in valuation allowance	3,383			2,265
Non-deductible interest	—			1,280
Loss from deemed liquidation of foreign subsidiary	(4,242		)	—
Rate Benefit from Carryback of Capital Loss	(6,452		)	—
Stock-based compensation shortfalls	437			1,373
Change in U.S. tax rate due to tax reform	—			10,391
Return to Provision	(1,835		)	—
Other, net	70			664
Income tax benefit for the period	$	(18,112	)	$	(9,894	)

Schedule of allocation of income tax expense (benefit)

Total income tax benefit was allocated as follows:



	Year Ended December 31,
In thousands	2018			2017
Operations	$	(18,112	)	$	(9,894	)
Stockholders’ equity	—			755
Total	$	(18,112	)	$	(9,139	)

Schedule of tax effects of temporary differences

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:



	Year Ended December 31,
In thousands	2018			2017
Deferred tax assets
Deferred compensation and retirement plan	$	16,179		$	15,017
Accrued expenses not deductible until paid	1,584			1,619
Employee stock-based compensation	780			1,757
Accrued payroll not deductible until paid	428			1,111
Accounts receivable, net	100			179
Investment in Foreign Subsidiaries, Outside Basis Difference	1,322			—
Goodwill	710			700
Other, net	142			290
Foreign net operating loss carryforwards	3,042			2,887
State net operating loss carryforwards	3,776			3,978
Foreign tax credit carryforwards	3,653			3,653
Federal net operating loss carryforwards	2,507			—
Total gross deferred tax assets	34,223			31,191
Less valuation allowances	(31,170		)	(28,350		)
Net deferred tax assets	$	3,053		$	2,841

Deferred tax liabilities
Property, plant and equipment	$	(1,689	)	$	(1,941	)
Goodwill and other intangibles	—			(701		)
Prepaid Expenses	(331		)	—
Other, net	(281		)	(972		)
Total gross deferred tax liabilities	(2,301		)	(3,614		)
Net deferred tax assets (liabilities)	$	752		$	(773	)

Summary of valuation allowance

A reconciliation of the beginning and ending balance of deferred tax valuation allowance is as follows:



In thousands
Balance at December 31, 2016	$	40,148
Deferred Income Tax Expense	(1,227		)
Return to Provision Impact	3,250
Impact of Tax Reform Act	(13,821		)
Balance at December 31, 2017	$	28,350
Deferred Income Tax Expense	3,383
Return to Provision Impact	(854		)
Other comprehensive income	291
Balance at December 31, 2018	$	31,170

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefit

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:



In thousands
Balance at December 31, 2016	$	967
Settlements	(761		)
Balance at December 31, 2017	$	206
Settlements	(206		)
Balance at December 31, 2018	$	—