XML 62 R42.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Summary of Provision for Income Tax Expense (Benefit)
The provision for income tax expense (benefit) consisted of the following:

 
 
(In thousands)
Years Ended December 31,
 
 
2016
 
2015
 
2014
Current tax expense (benefit)
 
 
 
 
 
 
Federal
 
$
5,953

 
$
(1,511
)
 
$
5,258

State
 
2,982

 
(418
)
 
244

 
 
8,935

 
(1,929
)
 
5,502

Deferred tax expense (benefit)
 
 
 
 
 
 
Federal
 
3,876

 
(28,011
)
 
1,186

State
 
41

 
(1,771
)
 
(315
)
 
 
3,917

 
(29,782
)
 
871

Income tax expense (benefit)
 
$
12,852

 
$
(31,711
)
 
$
6,373

Summary of Deferred Tax Assets (Liabilities)
Deferred tax (liabilities) assets were comprised of the following:
 
 
(In thousands)
December 31,
 
 
2016
 
2015
Deferred tax assets:
 
 
 
 
Accrued expenses
 
$
760

 
$
1,363

Allowance for doubtful accounts
 
184

 
134

Contract overrun reserves
 
1,776

 
4,412

Deferred compensation
 
507

 
491

Employment-related accruals
 
2,888

 
2,463

Environmental reserves
 
769

 
772

Federal tax credit carryforwards
 
4,234

 
7,031

Inventory reserves
 
2,313

 
2,703

Investment in common stock
 

 
297

Pension obligation
 
4,002

 
3,299

State net operating loss carryforwards
 
63

 
1,402

State tax credit carryforwards
 
6,585

 
5,937

Stock-based compensation
 
1,950

 
2,165

Workers’ compensation
 
122

 
133

Other
 
2,098

 
1,595

Total gross deferred tax assets
 
28,251

 
34,197

Valuation allowance
 
(6,607
)
 
(7,477
)
Total gross deferred tax assets, net of valuation allowance
 
21,644

 
26,720

Deferred tax liabilities:
 
 
 
 
Depreciation
 
(13,167
)
 
(11,802
)
Goodwill
 
(3,909
)
 
(3,632
)
Intangibles
 
(35,071
)
 
(37,891
)
Prepaid insurance
 
(626
)
 
(514
)
Section 481(a) adjustment
 

 
(682
)
Unbilled receivables
 
(2
)
 

Total gross deferred tax liabilities
 
(52,775
)
 
(54,521
)
Net deferred tax liabilities
 
$
(31,131
)
 
$
(27,801
)
Principle Reasons for Variation Between Expected and Effective Tax Rate
The principal reasons for the variation between the statutory and effective tax rates were as follows:
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
Statutory federal income tax (benefit) rate
 
35.0%
 
(35.0)%
 
35.0%
State income taxes (net of federal benefit)
 
5.7
 
(1.2)
 
0.9
Qualified domestic production activities
 
(2.0)
 
0.5
 
(2.3)
Research and development tax credits
 
(8.6)
 
(2.9)
 
(11.3)
Goodwill impairment
 
 
8.1
 
Changes in valuation allowance
 
0.9
 
0.6
 
8.5
Non-deductible book expenses
 
0.2
 
0.2
 
0.9
Changes in deferred tax assets
 
1.5
 
0.1
 
(5.0)
Remeasurement of deferred taxes for changes in state tax law
 
 
 
(1.9)
Changes in tax reserves
 
 
0.1
 
(0.7)
Other
 
1.0
 
(0.2)
 
0.2
Effective income tax (benefit) rate
 
33.7%
 
(29.7)%
 
24.3%
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
 
 
(In thousands)
Years Ended December 31,
 
 
2016
 
2015
 
2014
Balance at January 1,
 
$
2,963

 
$
2,803

 
$
2,297

Additions for tax positions related to the current year
 
476

 
702

 
668

Additions for tax positions related to prior years
 
385

 

 
31

Reductions for tax positions related to prior years
 
(567
)
 
(48
)
 
(22
)
Reductions for lapse of statute of limitations
 
(221
)
 
(494
)
 
(171
)
Balance at December 31,
 
$
3,036

 
$
2,963

 
$
2,803