Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income before taxes includes the following components (in thousands):

	Years ended December 31,
	2019			2018			2017
Domestic	$	(7,405	)	$	(7,897	)	$	(3,552	)
Foreign	33,845			41,886			24,115
	$	26,440		$	33,989		$	20,563

Schedule of Components of Income Tax Expense (Benefit)

The expense (benefit) for income taxes is comprised of (in thousands):

	Years ended December 31,
	2019			2018			2017
Current:
Federal	$	453		$	189		$	(425	)
State and local	(130		)	162			89
Foreign	6,378			8,982			4,615
	6,701			9,333			4,279
Deferred:
Federal	(2,638		)	197			(257		)
State and local	(123		)	(35		)	(1		)
Foreign	205			849			2,148
	(2,556		)	1,011			1,890
Total income tax expense	$	4,145		$	10,344		$	6,169

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense (benefit) at the U.S. federal statutory income tax rate to the actual income tax provision is as follows (in thousands):

	Years ended December 31,
	2019			2018			2017
Tax at statutory rate	$	5,553		$	7,138		$	7,197
State income taxes, net of U.S. federal tax benefit	(21		)	89			93
Effect of foreign operations	(109		)	611			(1,137		)
Change in valuation allowance	(646		)	498			(397		)
Change in unrecognized tax benefits, net	650			258			105
Impairment of goodwill	—			525			—
Specialty tax credits	(176		)	(295		)	(139		)
Statutory rate changes	(249		)	272			(470		)
Effect of foreign exchange	(1,152		)	321			(1,292		)
Loss of benefit of U.S. net operating loss (a)	967			—			—
Excess tax benefits related to share based compensation (a)	(357		)	—			—
2017 Tax Act:
Effects of U.S. tax reform	—			(135		)	11,311
Change in valuation allowance	—			945			(9,093		)
Other	(315		)	117			(9		)
Total income tax expense	$	4,145		$	10,344		$	6,169

^(a)Amounts for 2017 and 2018 are included in Other and fell below the 5% threshold.

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2019			2018
Deferred tax assets:
Pension and other postretirement costs	$	3,770		$	3,600
Inventories	2,095			2,103
Net operating/capital loss and interest carryforwards	11,895			9,536
Tax credit carryforwards	1,431			748
Deferred compensation	2,865			2,009
Other accruals and reserves	3,362			3,547
Book over tax depreciation	—			12
Total gross deferred tax assets	25,418			21,555
Less: valuation allowance	(14,867		)	(14,455		)
	10,551			7,100
Deferred tax liabilities:
Tax over book depreciation	(290		)	—
Investment in subsidiary	(1,845		)	(1,983		)
Intangible assets, including tax deductible goodwill	(5,745		)	(884		)
Total gross deferred tax liabilities	(7,880		)	(2,867		)
Net deferred tax assets	$	2,671		$	4,233

Summary of Valuation Allowance

Significant valuation allowances are as follows (in thousands):

	December 31,
Jurisdiction	2019		2018
U.S. federal	$	3,395	$	4,240
U.S. state (net of U.S. federal tax benefit)	8,411		8,057
Israel - capital losses	2,457		1,457

Summary of Operating Loss Carryforwards

The following table summarizes significant net operating losses and credit carryforwards as of December 31, 2019(in thousands):

	December 31,
Jurisdiction	2019	Expiring
U.S. foreign tax credit	1,431	2025-2039
U.S state net operating losses	92,407	2023-2039
Israel capital losses	10,684	No expiration

Summary of Income Tax Contingencies

The following table summarizes changes in the Company's gross liabilities, excluding interest and penalties, associated with unrecognized tax benefits (in thousands):

	December 31,
	2019			2018			2017
Balance at beginning of year	$	912		$	823		$	772
Addition based on tax positions related to current year	144			189			163
Addition based on tax positions related to prior years	668			182			—
Reduction based on tax positions related to prior years	(32		)	(98		)	(12		)
Currency translation adjustments	3			(28		)	14
Reduction for payments made	(134		)	—			—
Reduction for lapses of statute of limitations	(206		)	(156		)	(114		)
Balance before indemnification receivable	1,355			912			823
Receivable from Vishay Intertechnology for indemnification	—			—			(12		)
Balance at end of year	$	1,355		$	912		$	811