INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES [Abstract]

Income Before Income Taxes

The components of income before income taxes were as follows (in thousands):

	Years Ended December 31,
	2017		2016			2015
Domestic	$	13,183	$	11,079		$	(42,179	)
Foreign		3,709		(1,405	)		3,259
Total income before taxes	$	16,892	$	9,674		$	(38,920	)

Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):

	Years Ended December 31,
	2017			2016			2015
Current -
Federal	$	1,400		$	(902	)	$	5,182
State		698			136			1,499
Foreign		2,092			602			2,493
		4,190			(164	)		9,174
Deferred -
Federal		686			4,174			(7,090	)
State		(464	)		120			-
Foreign		(4,049	)		(1,607	)		(1,934	)
		(3,827	)		2,687			(9,024	)
	$	363		$	2,523		$	150

Difference between Income Taxes Computed at the Federal Statutory Income Tax Rate and the Provision for Income Taxes

The difference between income taxes computed at the federal statutory income tax rate (35%) and the provision for income taxes is as follows (in thousands):

	Years Ended December 31,
	2017			2016			2015
Income taxes computed at federal statutory rate	$	5,912		$	3,386		$	(13,622	)
State income taxes, net of federal benefit		152			166			974
Non-tax deductible impairment expense computed at federal statutory rate		-			-			15,765
Foreign adjustment		255			140			689
Meals and entertainment		422			361			620
Gain on sale of Vertex		-			(1,971	)		-
Domestic Production Activity Deduction		(98	)		-			(1,143	)
Research and development tax credit		(641	)		(886	)		(1,730	)
Foreign tax credit		-			(383	)		(921	)
Valuation Allowance		(791	)		-			-
Tax Reform Deferred Tax Remeasurement		(1,294	)		-			-
Canadian Acquisition Deferred Tax Liability True Up		(2,180	)		-			-
Foreign rate difference		(297	)		112			(261	)
Other		(1,077	)		1,598			(221	)
	$	363		$	2,523		$	150

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets were comprised of the following (in thousands):

	December 31,
	2017			2016
Deferred tax assets:
Goodwill	$	2,668		$	4,029
Allowance for doubtful accounts		1,707			2,469
Inventories		2,365			3,944
Accruals		(61	)		97
Research and development credit carryforward		1,115			886
Foreign Tax Credit Carryforward		64			64
Charitable Contribution Carryforward		559			138
Net operating loss carryforward		136			760
Capital loss carryforward		12,225			18,903
Deferred Compensation		475			1,881
Other Accruals		266			-
Other		65			107
Total deferred tax assets		21,584			33,278
Less valuation allowance		(12,220	)		(19,633	)
Total deferred tax asset, net of valuation Deferred tax liabilities :		9,364			13,645
Intangibles		(8,695	)		(10,042	)
Property and equipment		(6,860	)		(12,762	)
Unremitted foreign earnings		(354	)		(354	)
Cumulative translation adjustment		(67	)		-
Other		(457	)		-
Net deferred tax liability	$	(7,069	)	$	(9,513	)