Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows:



	Year Ended December 31,
In thousands	2019			2018
Current
Federal	$	216		$	(18,194	)
State and local	504			314
Foreign	37			1,413
Total current	$	757		$	(16,467	)

Deferred
Federal	$	623		$	(470	)
State and local	(96		)	(181		)
Foreign	469			(994		)
Total deferred	$	996		$	(1,645	)

Total income tax expense (benefit)	$	1,753		$	(18,112	)

Schedule of components of income from continuing operations before income taxes

The U.S. and foreign components of loss before income taxes were as follows:



	Year Ended December 31,
In thousands	2019			2018
United States	$	(29,003	)	$	(4,873	)
Foreign	4,492			4,311
Total loss from operations before income taxes	$	(24,511	)	$	(562	)

Schedule of difference between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate

The differences between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% to (loss) income before income taxes were as follows:



	Year Ended December 31,
In thousands	2019			2018
Computed expected income tax benefit	$	(5,147	)	$	(118	)
Basis difference on sale of 3Q Digital	—			(11,937		)
Net effect of state income taxes	(509		)	(388		)
Foreign subsidiary dividend inclusions	1,083			2,781
Foreign tax rate differential	(268		)	189
Change in valuation allowance	6,085			3,383
Loss from deemed liquidation of foreign subsidiary	—			(4,242		)
Rate Benefit from Carryback of Capital Loss	—			(6,452		)
Stock-based compensation shortfalls	238			437
Return to Provision	216			(1,835		)
Other, net	55			70
Income tax expense (benefit) for the period	$	1,753		$	(18,112	)

Schedule of allocation of income tax expense (benefit)

Total income tax expense (benefit) was allocated as follows:



	Year Ended December 31,
In thousands	2019		2018
(Loss) Income from operations	$	1,753	$	(18,112	)
Stockholders’ equity	—		—
Total	$	1,753	$	(18,112	)

Schedule of tax effects of temporary differences

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:



	Year Ended December 31,
In thousands	2019			2018
Deferred tax assets
Deferred compensation and retirement plan	$	18,067		$	16,179
Accrued expenses not deductible until paid	2,331			1,584
Lease liability	4,217			—
Employee stock-based compensation	736			780
Accrued payroll not deductible until paid	196			428
Accounts receivable, net	156			100
Investment in foreign subsidiaries, outside basis difference	1,336			1,322
Goodwill	649			710
Other, net	156			142
Foreign net operating loss carryforwards	2,364			3,042
State net operating loss carryforwards	4,387			3,776
Foreign tax credit carryforwards	3,653			3,653
Federal net operating loss carryforwards	5,394			2,507
Total gross deferred tax assets	43,642			34,223
Less valuation allowances	(38,379		)	(31,170		)
Net deferred tax assets	$	5,263		$	3,053

Deferred tax liabilities
Property, plant and equipment	$	(1,159	)	$	(1,689	)
Right-of-use asset	(3,785		)	—
Prepaid Expenses	(279		)	(331		)
Other, net	(284		)	(281		)
Total gross deferred tax liabilities	(5,507		)	(2,301		)
Net deferred tax (liabilities) assets	$	(244	)	$	752

Summary of valuation allowance

A reconciliation of the beginning and ending balance of deferred tax valuation allowance is as follows:



In thousands
Balance at December 31, 2017	$	28,350
Deferred Income Tax Expense	3,383
Return to Provision Impact	(854		)
Other Comprehensive Income	291
Balance at December 31, 2018	$	31,170
Deferred Income Tax Expense	6,086
Return to Provision Impact	(364		)
Other Comprehensive Income	1,487
Balance at December 31, 2019	$	38,379

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefit

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:



In thousands
Balance at December 31, 2017	$	206
Settlements	(206		)
Balance at December 31, 2018	$	—
Settlements
Balance at December 31, 2019	$	—