INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Schedule of components of the provision for income taxes

Years ended December 31,	2019		2018		2017
(in thousands)
Current provision:
Federal	$	6,637	$	6,173	$	8,623
State		202		616		546
Deferred (benefit) provision:
Federal		(715)		384		1,511
State		95		(6)		8
Total income tax provision	$	6,219	$	7,167	$	10,688

Schedule of reconciliation between the federal statutory rate and effective tax rate

Years ended December 31,	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal benefit	1.0		1.5		1.1
Research and experimentation credit	(1.2)		(0.8)		(0.8)
Non-deductible expenses	(0.7)		0.4		(3.5)
Change in contingencies	(0.1)		0.4		0.5
Adjustments related to the Act	0.0		(0.3)		5.6
Adjustments related to vesting of restricted stock	(1.5)		(1.8)		(2.4)
Other	(0.5)		(0.3)		0.1
Effective tax rate	18.0	%	20.1	%	35.6	%

Schedule of components of deferred tax assets and liabilities

December 31,	2019		2018
(in thousands)
Deferred tax assets:
Warranty costs	$	1,190	$	1,233
Sales incentives and discounts		404		317
Stock-based compensation		696		667
Pension		2,002		1,337
State NOL’s		484		588
State credits		1,818		2,794
All others		560		559
Valuation allowance		(1,818)		(2,794)
Total deferred tax assets		5,336		4,701
Deferred tax liabilities:
Depreciation and amortization expense		(947)		(1,009)
Basis differences in joint venture		(399)		(367)
Net deferred tax assets	$	3,990	$	3,325

Schedule of unrecognized tax benefits

	2019		2018
Balance at January 1	$	393,000	$	243,000
(Decreases) additions based on tax positions related to the current year		(28,000)		81,000
(Decreases) additions for tax positions of prior years		(7,000)		69,000
Balance at December 31	$	358,000	$	393,000