Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income Tax Expense (Benefit)

The components of income before income taxes and the income tax provision for the years ended December 31 are as follows:



	2019		2018		2017
Income before income taxes
Domestic	$	25,331	$	30,670	$	34,301
Foreign	9,062		4,291		4,747
	$	34,393	$	34,961	$	39,048
Income tax provision
Current income tax provision:
Federal	$	3,669	$	775	$	12,139
State	1,026		460		1,306
Foreign	1,372		1,396		1,366
Total current	6,067		2,631		14,811
Deferred income tax provision (benefit):
Federal	297		4,813		3,868
State	1,771		296		(17		)
Foreign	1,180		76		256
Total deferred	3,248		5,185		4,107
	$	9,315	$	7,816	$	18,918

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:



	2019					2018					2017
	$			%		$			%		$			%
Income before income taxes	$	34,393				$	34,961				$	39,048
Statutory taxes at 21.0% (35.0% in 2017)	$	7,223		21.0	%	$	7,342		21.0	%	$	13,667		35.0	%
State and local income taxes	1,063			3.1	%	561			1.6	%	843			2.2	%
Valuation allowances	2,146			6.2	%	233			0.7	%	369			0.9	%
Other non-deductible expenses	346			1.0	%	429			1.2	%	44			0.1	%
Credits	(1,195		)	(3.5	)%	(348		)	(1.0	)%	(458		)	(1.2	)%
Provisional effect of the Tax Cuts and Jobs Act (the "Tax Act")	—			—	%	—			—	%	4,654			11.9	%
Non-deductible spin-related costs	—			—	%	—			—	%	540			1.4	%
Other, net	(268		)	(0.8	)%	(401		)	(1.1	)%	(741		)	(1.9	)%
Income tax provision	$	9,315		27.1	%	$	7,816		22.4	%	$	18,918		48.4	%

Deferred Tax Assets and Liabilities

A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows:



	December 31
	2019			2018
Deferred tax assets
Tax carryforwards	$	1,519		$	990
Inventory	316			—
Accrued expenses and reserves	5,311			5,338
Other employee benefits	1,371			2,747
Other	1,167			1,088
Total deferred tax assets	9,684			10,163
Less: Valuation allowances	(1,157		)	(1,295		)
	8,527			8,868
Deferred tax liabilities
Inventory	—			37
Accrued pension benefits	2,623			1,854
Depreciation and amortization	2,051			1,459
Total deferred tax liabilities	4,674			3,350
Net deferred tax asset	$	3,853		$	5,518

Summary of Tax Credit Carryforwards

The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain:



	December 31, 2019
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Alternative minimum tax credit	$	496	$	—	(1)
Non-U.S. net operating loss	1,023		1,023		2020 - Indefinite
Total	$	1,519	$	1,023


(1)	The Tax Act repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. These credits are fully utilized in 2019 based on estimated income taxes.



	December 31, 2018
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	990	$	990	2020 - Indefinite
Total	$	990	$	990

Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2019, 2018, and 2017. Approximately $0.4 million, $0.3 million, and $0.6 million of these gross amounts as of December 31, 2019, 2018, and 2017, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein.



	2019		2018			2017
Balance at January 1	$	465	$	881		$	671
Additions based on tax positions related to prior years	98		90			—
Additions based on tax positions related to the current year	—		—			210
Reductions due to settlements with taxing authorities	—		(506		)	—
Balance at December 31	$	563	$	465		$	881