Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The Company's income before income taxes and income tax expense, each by tax jurisdiction, consists of the following (dollars in thousands):



	Year ended December 31,
	2019			2018		2017
Income before income taxes:
Domestic	$	52,190		$	64,670	$	46,180
Foreign	26,070			27,690		23,700
Total income before income taxes	$	78,260		$	92,360	$	69,880
Current income tax expense:
Federal	$	3,530		$	4,410	$	10,990
State and local	1,280			2,060		1,640
Foreign	7,070			6,200		6,010
Total current income tax expense	11,880			12,670		18,640
Deferred income tax expense (benefit):
Federal	4,890			4,570		15,200
State and local	500			1,310		1,280
Foreign	(950		)	100		(1,200		)
Total deferred income tax expense	4,440			5,980		15,280
Income tax expense	$	16,320		$	18,650	$	33,920

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes are as follows (dollars in thousands):



	December 31, 2019			December 31, 2018
Deferred tax assets:
Accounts receivable	$	480		$	590
Inventories	4,390			3,040
Accrued liabilities and other long-term liabilities	12,210			14,470
Operating lease liability	6,790			—
Tax loss and credit carryforwards	9,200			5,740
Other, principally deferred income	340			330
Gross deferred tax asset	33,410			24,170
Valuation allowances	(8,310		)	(4,330		)
Net deferred tax asset	25,100			19,840
Deferred tax liabilities:
Property and equipment	(20,650		)	(14,620		)
Right of use asset	(6,700		)	—
Goodwill and other intangible assets	(13,250		)	(6,420		)
Investment in foreign affiliates, including withholding tax	(830		)	(1,050		)
Gross deferred tax liability	(41,430		)	(22,090		)
Net deferred tax liability	$	(16,330	)	$	(2,250	)

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of income tax expense computed at the U.S. federal statutory rate to income tax expense allocated to income before income taxes (dollars in thousands):



	Year ended December 31,
	2019			2018			2017
U.S. federal statutory rate	21		%	21		%	35		%
Tax at U.S. federal statutory rate	$	16,440		$	19,390		$	24,460
State and local taxes, net of federal tax benefit	970			2,730			2,170
Differences in statutory foreign tax rates	(870		)	490			(1,060		)
Change in recognized tax benefits	(920		)	(560		)	(90		)
Nontaxable income	(570		)	(940		)	(250		)
Research and manufacturing incentives	(1,160		)	(1,740		)	(1,510		)
Net change in valuation allowance	3,580			280			(250		)
Tax Reform Act	—			(400		)	12,660
Other, net	(1,150		)	(600		)	(2,210		)
Income tax expense	$	16,320		$	18,650		$	33,920

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in the UTBs for the years ended December 31, 2019 and 2018 is as follows (dollars in thousands):



	Unrecognized Tax Benefits
Balance at December 31, 2017	$	3,370
Tax positions related to current year:
Additions	60
Tax positions related to prior years:
Additions	390
Reductions	—
Settlements	—
Lapses in the statutes of limitations	(800		)
Balance at December 31, 2018	$	3,020
Tax positions related to current year:
Additions	110
Tax positions related to prior years:
Additions	—
Reductions	—
Settlements	—
Lapses in the statutes of limitations	(880		)
Balance at December 31, 2019	$	2,250