Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2018

Income (loss) before taxes on income was as follows (in thousands):



	Years Ended December 31,
	2018			2017			2016
Domestic	$	8,142		$	(40,007	)	$	23,170
Foreign	(5,187		)	(21,570		)	12,064
Total	$	2,955		$	(61,577	)	$	35,234

Schedule of Components of Income Tax Expense (Benefit)

Provisions for taxes on income (loss) consisted of the following components (in thousands):



	Years Ended December 31,
	2018			2017			2016
Current:
Federal	$	(4,765	)	$	3,764		$	(636	)
Foreign	6,025			7,512			3,585
State	(651		)	3,351			175
Subtotal	609			14,627			3,124
Deferred:
Federal	947			(8,706		)	2,158
Foreign	(1,531		)	(1,099		)	475
State	(157		)	183			352
Subtotal	(741		)	(9,622		)	2,985
Total tax provision	$	(132	)	$	5,005		$	6,109

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income (loss) before taxes on income as a result of the following (in thousands):



	Years Ended December 31,
	2018			2017			2016
Income taxes (benefit) at U.S. federal statutory tax rate	$	621		$	(21,552	)	$	12,332
Increase (decrease) in taxes resulting from:
Change in the balance of the valuation allowance for deferred tax assets allocated to foreign income tax expense	590			4,598			1,364
Change in the balance of the valuation allowance for deferred tax assets allocated to domestic income tax expense	(944		)	12,755			(4,202		)
State income taxes, net of federal income tax benefit	(798		)	2,270			342
Divestitures	2,133			—			271
Meals and entertainment	517			785			736
Changes in taxes previously accrued	(536		)	(1,339		)	23
Foreign tax rate differences	1,301			913			(2,559		)
Share-based compensation	(1,427		)	131			(90		)
Goodwill impairment	291			6,359			—
Recognition of uncertain tax positions	(218		)	(62		)	85
Deemed mandatory repatriation	(842		)	10,406			—
Release of deferred tax liability on foreign earnings	—			(7,051		)	—
Domestic Production Activities deduction	—			(1,921		)	(1,017		)
Other matters	(820		)	(1,287		)	(1,176		)
Total tax provision	$	(132	)	$	5,005		$	6,109
Effective tax rate	(4.5		)%	(8.1		)%	17.3		%

Schedule of Deferred Tax Assets and Liabilities

Net deferred taxes consisted of the following (in thousands):



	December 31,
	2018			2017
Deferred income tax assets:
Foreign tax credit carryforwards	$	507		$	466
Net operating loss carryforwards	22,909			23,216
Accrued expenses	12,987			12,107
Other	8,652			4,707
Total gross deferred income tax assets	45,055			40,496
Less valuation allowance	(28,451		)	(29,782		)
Net deferred income tax assets	16,604			10,714
Deferred income tax liabilities:
Property, plant and equipment	(6,038		)	(9,482		)
Intangible assets	(10,609		)	(2,201		)
Other	(6,757		)	(6,576		)
Total deferred income tax liabilities	(23,404		)	(18,259		)
Net deferred income tax liabilities	$	(6,800	)	$	(7,545	)

The Company’s tax assets and liabilities, netted by taxing location, are in the following captions in the balance sheets (in thousands):



	December 31,
	2018			2017
Noncurrent deferred income tax assets, net	$	1,561		$	1,666
Noncurrent deferred income tax liabilities, net	(8,361		)	(9,211		)
Net deferred income tax liabilities	$	(6,800	)	$	(7,545	)

Summary of Valuation Allowance

Activity in the valuation allowance is summarized as follows (in thousands):



	Years Ended December 31,
	2018			2017			2016
Balance, at beginning of year	$	29,782		$	15,428		$	18,897
Additions	1,879			19,260			3,095
Reversals	(2,102		)	(183		)	(4,984		)
Remeasurement of U.S. deferred tax balances	—			(5,141		)	—
Other adjustments	(1,108		)	418			(1,580		)
Balance, at end of year	$	28,451		$	29,782		$	15,428

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):



	Years Ended December 31,
	2018			2017			2016
Balance, at beginning of year	$	2,229		$	2,465		$	2,410
Additions for tax positions of prior years related to acquisitions	—			—			148
Additions for tax positions of prior years	8			12			10
Lapse in statute of limitations	(264		)	(274		)	(83		)
Foreign currency translation	(18		)	26			(20		)
Balance, at end of year, total tax provision	$	1,955		$	2,229		$	2,465