Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Summary of provision for income taxes from continuing operations

The provision for income taxes from continuing operations consists of:



	Year ended December 31, (in thousands)
	2018		2017
Current income tax:
Federal	$	—	$	—
State	293		122
Foreign	41		227
	334		349
Deferred income tax:
Federal	12,004		4,029
State	1,805		(381		)
	13,809		3,648
Provision for income taxes	$	14,143	$	3,997

Components of (loss) income before income taxes

The components of (loss) income before income taxes consisted of the following:



	December 31,
	2018			2017
United States	$	(9,820	)	$	2,314
Other Countries	(159		)	(1,927		)
Total	$	(9,979	)	$	387

Summary of deferred tax liabilities (assets)

Deferred tax (liabilities) assets are comprised of the following at:



	December 31, (in thousands)
	2018			2017
Deferred tax (liabilities) assets:
Software development costs	$	(1,954	)	$	(2,119	)
Acquired intangible assets	(676		)	(913		)
Gross deferred tax liabilities	(2,630		)	(3,032		)

Allowances for bad debts and inventory	2,785			2,958
Capitalized inventory costs	116			109
Intangible assets	420			672
Employee benefit accruals	1,742			1,282
Federal net operating loss carryforward	6,512			4,941
State net operating loss carryforward	2,112			1,540
Tax credit carryforwards	6,176			6,064
Foreign currency	—			33
Depreciation on property, plant and equipment	373			168
Other	722			727
Gross deferred tax assets	20,958			18,494

Less valuation allowance	(18,328		)	(1,653		)

Net deferred tax assets	$	—		$	13,809

Schedule of effective income tax rate reconciliation

The provision for income taxes differed from the provision computed by applying the Federal statutory rate to income (loss) from continuing operations before taxes due to the following:



	Year ended December 31,
	2018		2017
Federal statutory tax rate	21.0	%	34.0	%
State taxes	4.4		(0.9	)
Non deductible expenses	(0.6	)	19.4
Tax credits	4.6		(90.6	)
Expired tax credits	(3.9	)	—
Stock based compensation	0.8		(69.6	)
Foreign income tax rate differential	—		(14.0	)
Repatriation Tax	—		110.5
Impact of Tax Cuts and Jobs Act enactment	—		1,241.0
Valuation allowance	(167.0	)	—
Tax return and audit adjustments	—		(107.3	)
Contingent purchase revaluation	(1.0	)	(88.0	)
Other	(0.1	)	(1.7	)
	(141.8	)%	1,032.8	%