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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Tax Rate

A reconciliation of the Federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

 

 

Percent of Income before

Income Taxes

 

 

 

2016

 

 

2015

 

 

2014

 

Statutory Federal income tax rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

State income taxes - net of Federal tax benefit

 

 

7.0

 

 

 

0.2

 

 

 

(4.5

)

Foreign tax rate differential

 

 

(0.7

)

 

 

(2.4

)

 

 

1.8

 

Domestic production deduction

 

 

(7.6

)

 

 

(4.0

)

 

 

(6.6

)

Non-deductible expenses

 

 

6.5

 

 

 

4.9

 

 

 

7.0

 

Asset impairment

 

 

26.0

 

 

 

—

 

 

 

—

 

Changes in unrecognized tax benefits

 

 

(1.9

)

 

 

(1.8

)

 

 

(2.5

)

Foreign tax incentives

 

 

(5.0

)

 

 

(2.3

)

 

 

(3.0

)

Valuation allowances

 

 

23.0

 

 

 

4.8

 

 

 

9.0

 

Other

 

 

(1.4

)

 

 

1.3

 

 

 

0.2

 

Effective tax rate for the year

 

 

80.9

%

 

 

35.7

%

 

 

36.4

%

 

Income (Loss) from Continuing Operations Before Income Taxes

 

Income from continuing operations before income taxes was attributable to the following sources:

 

 

 

2016

 

 

2015

 

 

2014

 

United States

 

$

17,010

 

 

$

19,546

 

 

$

21,074

 

Foreign

 

 

(9,015

)

 

 

2,316

 

 

 

(6,991

)

Totals

 

$

7,995

 

 

$

21,862

 

 

$

14,083

 

 

Income Tax Expense (Benefit) from Continuing Operations

 

Income tax expense (benefit) from continuing operations consisted of the following:

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

Federal

 

$

5,684

 

 

$

(413

)

 

$

6,677

 

 

$

(368

)

 

$

8,298

 

 

$

(1,208

)

Foreign

 

 

388

 

 

 

(57

)

 

 

504

 

 

 

783

 

 

 

(277

)

 

 

(710

)

State and local

 

 

641

 

 

 

227

 

 

 

943

 

 

 

(730

)

 

 

(234

)

 

 

(747

)

 

 

$

6,713

 

 

$

(243

)

 

$

8,124

 

 

$

(315

)

 

$

7,787

 

 

$

(2,665

)

 

Significant Components of the Company's Deferred Taxes

 

Significant components of the Company’s deferred taxes as of December 31, 2016 and 2015 are as follows:

 

 

 

2016

 

 

2015

 

Deferred income tax liabilities

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

11,235

 

 

$

12,989

 

Tax-deductible goodwill

 

 

9,519

 

 

 

7,871

 

Non-deductible intangibles

 

 

—

 

 

 

282

 

State deferred taxes

 

 

360

 

 

 

212

 

Other

 

 

911

 

 

 

1,010

 

 

 

 

22,025

 

 

 

22,364

 

Deferred income tax assets

 

 

 

 

 

 

 

 

Compensation

 

 

5,686

 

 

 

7,081

 

Inventory valuation

 

 

861

 

 

 

945

 

Allowance for uncollectible accounts

 

 

510

 

 

 

194

 

Non-deductible accruals

 

 

3,562

 

 

 

3,892

 

Non-deductible intangibles

 

 

1,165

 

 

 

—

 

Net operating loss carryforwards

 

 

5,989

 

 

 

4,715

 

 

 

 

17,773

 

 

 

16,827

 

Valuation Allowance

 

 

(6,114

)

 

 

(3,664

)

 

 

 

11,659

 

 

 

13,163

 

Net deferred income tax liability

 

$

10,366

 

 

$

9,201

 

 

Activity Related to the Company's Valuation Allowance

The following table summarizes the activity related to the Company’s valuation allowance:

 

 

 

2016

 

 

2015

 

 

2014

 

Balance at January 1

 

$

(3,664

)

 

$

(4,326

)

 

$

(4,264

)

(Charged) Credited to Expense

 

 

(1,655

)

 

 

(763

)

 

 

414

 

Net write-offs

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency translation adjustment

 

 

(795

)

 

 

1,425

 

 

 

(476

)

Balance at December 31

 

$

(6,114

)

 

$

(3,664

)

 

$

(4,326

)

 

Activity Related to the Company's Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2016

 

 

2015

 

 

2014

 

Balance at January 1

 

$

151

 

 

$

483

 

 

$

840

 

Increases related to previous year tax positions

 

 

478

 

 

 

151

 

 

 

5

 

Reductions due to lapse of applicable statute of limitations

 

 

(151

)

 

 

(483

)

 

 

(362

)

Reduction due to settlements

 

 

—

 

 

 

—

 

 

 

—

 

Balance at December 31

 

$

478

 

 

$

151

 

 

$

483