Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income from Continuing Operations Before Income Taxes

The components of income from continuing operations before provision for income taxes are as follows:



(In thousands)	2016		2015		2014
Domestic	$	6,196	$	13,076	$	10,951
Foreign	38,353		36,295		30,567
	$	44,549	$	49,371	$	41,518

Components of the Provision for Income Taxes from Continuing Operations

The components of the provision for income taxes from continuing operations are as follows:



(In thousands)	2016			2015			2014
Current Provision:
Federal	$	535		$	4,693		$	1,080
Foreign	11,323			10,623			7,703
State	838			1,152			713
	12,696			16,468			9,496
Deferred (Benefit) Provision:
Federal	1,738			45			2,179
Foreign	(1,818		)	(1,378		)	418
State	(533		)	(373		)	354
	(613		)	(1,706		)	2,951
	$	12,083		$	14,762		$	12,447

Provision for Income Taxes by Continuing and Discontinued Operation

The provision for income taxes included in the accompanying consolidated statement of income is as follows:



(In thousands)	2016		2015		2014
Continuing Operations	$	12,083	$	14,762	$	12,447
Discontinued Operation	2		43		(14		)
	$	12,085	$	14,805	$	12,433

Income Tax Reconciliation

The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following:



(In thousands)	2016			2015			2014
Provision for Income Taxes at Statutory Rate	$	15,592		$	17,279		$	14,531
Increases (Decreases) Resulting From:
State income taxes, net of federal tax	189			506			694
U.S. tax cost of foreign earnings	192			455			206
Foreign tax rate differential	(3,921		)	(3,852		)	(3,026		)
(Reversal of) provision for tax benefit reserves, net	(76		)	33			(1,017		)
Change in valuation allowance	(131		)	99			125
Nondeductible expenses	1,090			704			1,398
Research and development tax credits	(229		)	(210		)	(274		)
Excess tax benefit related to share-based compensation	(553		)	—			—
Other	(70		)	(252		)	(190		)
	$	12,083		$	14,762		$	12,447

Net Deferred Tax (Liability) Asset

Net deferred tax liability in the accompanying consolidated balance sheet consists of the following:



(In thousands)	2016			2015
Deferred Tax Asset:
Foreign, state, and alternative minimum tax credit carryforwards	$	161		$	23
Reserves and accruals	4,842			5,003
Net operating loss carryforwards	13,694			12,306
Inventory basis difference	3,005			3,253
Research and development	75			246
Employee compensation	4,966			5,427
Allowance for doubtful accounts	488			405
Revenue recognition	636			525
Other	249			151
Deferred tax asset, gross	28,116			27,339
Less: valuation allowance	(10,863		)	(11,493		)
Deferred tax asset, net	17,253			15,846
Deferred Tax Liability:
Goodwill and intangible assets	(21,853		)	(17,450		)
Fixed asset basis difference	(4,325		)	(3,234		)
Reserves and accruals	—			(32		)
Other	(1,199		)	(284		)
Deferred tax liability	(27,377		)	(21,000		)
Net deferred tax liability	$	(10,124	)	$	(5,154	)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2016 and 2015 is as follows:



(In thousands)	2016			2015
Unrecognized Tax Benefits, Beginning of Year	$	5,052		$	5,006
Gross Increases—Tax Positions in Prior Periods	403			—
Gross Decreases—Tax Positions in Prior Periods	(23		)	(28		)
Gross Increases—Current-period Tax Positions	480			476
Lapses of Statutes of Limitations	(359		)	(253		)
Currency Translation	(86		)	(149		)
Unrecognized Tax Benefits, End of Year	$	5,467		$	5,052