Provision for Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 13 — Provision for Taxes

Income before taxes and the provision for taxes consisted of the following:

In Thousands	2016		2015		2014
Income (loss) before taxes:
United States of America (USA)	$	15,542	$	15,674	$	5,001
Non USA		—		—		7,155
	$	15,542	$	15,674	$	12,156
Provision for taxes:
Current
Federal	$	4,060	$	1,670	$	3
State		363		237		306
International		—		—		566
		4,423		1,907		875
Deferred
Federal		1,453		1,909		(667)
State		(1,827)		252		131
International		—		—		—
		(374)		2,161		(536)
	$	4,049	$	4,068	$	339
Continuing Operations	$	4,049	$	4,068	$	6,438
Discontinued Operations		—		—		(6,099)
	$	4,049	$	4,068	$	339

The provision for income taxes was computed based on financial statement income. A reconciliation of the provision for income taxes to the amount computed using the statutory rate follows:

In Thousands	2016		2015		2014
Income tax at statutory rate	$	5,439	$	5,486	$	4,255
Increase (decrease) in income tax resulting from
State tax expense, net of federal effect		194		318		291
Federal true-ups		8		(38)		55
Federal tax credits		(189)		(802)		(568)
Effect of foreign tax rates		(443)		(474)		(1,107)
Valuation allowances (state and foreign)		19		—		(1,406)
Captive insurance earnings		311		(361)		(398)
Incentive stock options		20		57		155
Deferred state rate adjustments		(1,194)		—		—
Foreign exchange gain on sale of Information Security		—		—		(898)
Other		(116)		(118)		(40)
Recorded provision for income taxes	$	4,049	$	4,068	$	339

The provision for income taxes was computed based on financial statement income. In accordance with FASB ASC 740, the Company does not have any uncertain tax positions as of and for the years ended December 31, 2016 and December 26, 2015.

Interest costs and penalties related to income taxes are classified as interest expense and selling, general and administrative costs, respectively in the Company’s financial statements. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and multiple state and foreign jurisdictions. The Company is subject to future examinations by federal, state and other tax authorities for all years after 2012.

The components of the net deferred tax liabilities are as follows:

In Thousands	2016		2015
Assets
Employee benefits	$	39	$	100
Valuation reserves		1,782		1,897
Property and equipment		(129)		259
Stock based compensation		224		268
Federal and state credits		287		259
Net operating loss carry forward		—		29
Total assets		2,203		2,812
Liabilities
Unrealized equity investment income		(2,025)		(3,192)
Goodwill and intangible assets		(4,697)		(4,720)
Prepaid insurance		(228)		(122)
Total liabilities		(6,950)		(8,034)
Valuation Allowance
Beginning balance		(435)		(435)
Decrease during period		24		—
Ending balance		(411)		(435)
	$	(5,158)	$	(5,657)

Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:

In Thousands	2016		2015
Deferred income tax asset - current	$	1,283	$	1,543
Deferred income tax asset (liability) – long-term		(6,441)		(7,200)
	$	(5,158)	$	(5,657)

The Company has utilized all state net operating losses during the year ended December 31, 2016.