Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of provision for income taxes from operations

The provision for income taxes from operations consisted of the following:



	Years Ended December 31,
(in thousands)	2018		2017			2016
Current
Federal	$	27,410	$	36,077		$	39,649
State	9,515		6,357			7,053
Foreign	4,605		3,068			3,333
Deferred
Federal	3,179		6,093			260
State	263		544			13
Foreign	523		(338		)	(1,142		)
	$	45,495	$	51,801		$	49,166

Schedule of income and loss from operations before income taxes

Income and loss from operations before income taxes for the years ended December 31, 2018, 2017, and 2016, respectively, consisted of the following:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Domestic	$	169,109	$	132,105	$	131,827
Foreign	3,019		12,313		7,073
	$	172,128	$	144,418	$	138,900

Schedule of effective income tax rates reconciliations

Reconciliations between the statutory federal income tax rates and the Company’s effective income tax rates as a percentage of income before income taxes for its operations were as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Federal tax rate	21.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	4.5	%	3.2	%	3.4	%
Tax benefit of domestic manufacturing deduction	—	%	(2.0	)%	(2.5	)%
Mandatory deemed repatriation of foreign earnings	—	%	2.7	%	—	%
Change in U.S. tax rate applied to deferred taxes	—	%	(1.9	)%	—	%
Change in valuation allowance	1.3	%	1.3	%	(0.1	)%
True-up of prior year tax returns to tax provision	(1.2	)%	(0.5	)%	(0.2	)%
Difference between United States statutory and foreign local tax rates	0.5	%	(0.8	)%	(0.3	)%
Change in uncertain tax position	(0.1	)%	—	%	(0.2	)%
Other	0.4	%	(1.1	)%	0.3	%
Effective income tax rate	26.4	%	35.9	%	35.4	%

Schedule of deferred tax assets and liabilities

The tax effects of the significant temporary differences that constitute the deferred tax assets and liabilities at December 31, 2018 and 2017, respectively, were as follows:



	December 31,
(in thousands)	2018			2017
Deferred asset taxes
State tax	$	919		$	1,390
Workers’ compensation	785			822
Health claims	445			487
Vacation liability	370			1,008
Allowance for doubtful accounts	171			104
Inventories	5,659			5,385
Sales incentive and advertising allowances	799			709
Stock-based compensation	3,074			2,967
Unrealized foreign exchange gain or loss	440			291
Foreign tax credit carryforwards	5,043			4,453
Uncertain tax positions’ unrecognized tax benefits	39			31
Foreign tax loss carry forward	8,091			6,892
Other	1,813			1,291
	$	27,648		$	25,830
Less valuation allowances	(13,254		)	(11,114		)
Total deferred asset taxes	$	14,394		$	14,716

Deferred tax liabilities
Depreciation	$	(9,189	)	$	(7,050	)
Goodwill and other intangibles amortization	(13,027		)	(11,331		)
Tax effect on cumulative translation adjustment	(497		)	(487		)
Total deferred tax liabilities	(22,713		)	(18,868		)

Total Deferred tax asset/(liability)	$	(8,319	)	$	(4,152	)

Schedule of reconciliation of unrecognized tax benefits, including foreign translation amount

A reconciliation of the beginning and ending amounts of unrecognized tax benefits in 2018, 2017 and 2016, respectively, was as follows, including foreign translation amounts:



Reconciliation of Unrecognized Tax Benefits	2018			2017			2016
Balance at January 1	$	1,895		$	1,119		$	1,107
Additions based on tax positions related to prior years	—			660			204
Reductions based on tax positions related to prior years	(171		)	(1		)	—
Additions for tax positions of the current year	100			319			155
Lapse of statute of limitations	(67		)	(202		)	(347		)
Balance at December 31	$	1,757		$	1,895		$	1,119