Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Summary of Provision for Income Tax Expense (Benefit)

The provision for income tax (benefit) expense consisted of the following:

	(In thousands) Years Ended December 31,
	2017			2016		2015
Current tax expense (benefit)
Federal	$	2,387		$	5,953	$	(1,511	)
State	525			2,982		(418		)
	2,912			8,935		(1,929		)
Deferred tax (benefit) expense
Federal	(15,515		)	3,876		(28,011		)
State	135			41		(1,771		)
	(15,380		)	3,917		(29,782		)
Income tax (benefit) expense	$	(12,468	)	$	12,852	$	(31,711	)

Summary of Deferred Tax Assets (Liabilities)

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

	(In thousands) December 31,
	2017			2016
Deferred tax assets:
Accrued expenses	$	313		$	760
Allowance for doubtful accounts	208			184
Contract overrun reserves	294			1,776
Deferred compensation	177			507
Employment-related accruals	2,091			2,888
Environmental reserves	501			769
Federal tax credit carryforwards	5,613			4,234
Inventory reserves	1,315			2,313
Pension obligation	2,398			4,002
State net operating loss carryforwards	86			63
State tax credit carryforwards	9,051			6,585
Stock-based compensation	1,480			1,950
Workers’ compensation	75			122
Other	1,492			2,098
Total gross deferred tax assets	25,094			28,251
Valuation allowance	(9,013		)	(6,607		)
Total gross deferred tax assets, net of valuation allowance	16,081			21,644
Deferred tax liabilities:
Depreciation	(7,976		)	(13,167		)
Goodwill	(2,902		)	(3,909		)
Intangibles	(20,611		)	(35,071		)
Prepaid insurance	(312		)	(626		)
Unbilled receivables	—			(2		)
Total gross deferred tax liabilities	(31,801		)	(52,775		)
Net deferred tax liabilities	$	(15,720	)	$	(31,131	)

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,
	2017	2016	2015
Statutory federal income tax (benefit) rate	35.0%	35.0%	(35.0)%
State income taxes (net of federal benefit)	2.5	5.7	(1.2)
Qualified domestic production activities	(2.6)	(2.0)	0.5
Stock-based compensation expense	(8.2)	—	—
Research and development tax credits	(50.6)	(8.6)	(2.9)
Other tax credits	(7.5)	—	—
Goodwill impairment	—	—	8.1
Changes in valuation allowance	10.6	0.9	0.6
Non-deductible book expenses	1.1	0.2	0.2
Changes in deferred tax assets	15.4	1.5	0.1
Re-measurement of deferred taxes for 2017 Tax Act	(171.3)	—	—
Changes in tax reserves	11.4	—	0.1
Other	0.4	1.0	(0.2)
Effective income tax (benefit) rate	(163.8)%	33.7%	(29.7)%

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,
	2017			2016			2015
Balance at January 1,	$	3,036		$	2,963		$	2,803
Additions for tax positions related to the current year	422			476			702
Additions for tax positions related to prior years	1,953			385			—
Reductions for tax positions related to prior years	(99		)	(567		)	(48		)
Reductions for lapse of statute of limitations	(41		)	(221		)	(494		)
Balance at December 31,	$	5,271		$	3,036		$	2,963