Income Taxes Income Tax (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income (loss) from continuing operations before income taxes

Income (loss) from continuing operations before income taxes consisted of the following:

	(Dollars in thousands)
	Year Ended December 31,
	2016			2015			2014
United States	$	(708	)	$	3,583		$	(4,355	)
Canada	(823		)	(2,431		)	(1,479		)
	$	(1,531	)	$	1,152		$	(5,834	)

Components of provision (benefit) for income taxes

Provision (benefit) for income taxes from continuing operations for the years ended December 31, consisted of the following:

	(Dollars in thousands)
	Year Ended December 31,
	2016			2015			2014
Current income tax expense (benefit):
U.S. Federal	$	97		$	(461	)	$	(377	)
U.S. state	(33		)	75			79
Canada	3			1,241			525
Total	$	67		$	855		$	227
Deferred income tax expense:
U.S. Federal	—			—			—
U.S. state	31			—			—
Canada	—			—			—
Total	31			—			—
Total income tax expense (benefit):
U.S. Federal	97			(461		)	(377		)
U.S. state	(2		)	75			79
Canada	3			1,241			525
Total	98			855			227

Reconciliation between effective income tax rate and statutory federal rate

The reconciliation between the effective income tax rate and the statutory federal rate for continuing operations was as follows:

	Year Ended December 31,
	2016		2015		2014
Statutory Federal rate	35.0%		35.0	%	35.0%
Increase (decrease) resulting from:
State and local taxes, net	(17.4	)	10.4		2.8
Change in valuation allowance	14.5		(86.4	)	(26.9	)
Foreign tax rate differential	(14.3	)	17.9		(2.2	)
Meals & entertainment	(9.0	)	11.6		(2.6	)
Alternative minimum tax	(6.3	)	7.6		—
Provision to return differences	(4.5	)	24.4		(3.2	)
Executive life insurance	(3.1	)	2.4		2.3
Captive insurance income	(3.0	)	—		—
Change in uncertain tax positions	0.6		56.2		(9.0	)
Other items, net	1.1		(4.9	)	(0.1	)
Provision for income taxes	(6.4	)%	74.2	%	(3.9	)%

Deferred tax assets and liabilities

Deferred income tax assets and liabilities contain the following temporary differences:

	(Dollars in thousands)
	December 31,
	2016			2015
Deferred tax assets:
Net operating loss carryforward	$	17,518		$	19,336
Compensation and benefits	12,126			11,979
Inventory reserve	2,750			2,726
Capital loss carryforward	2,210			2,210
Accounts receivable reserve	183			218
Other	1,770			2,073
Total deferred tax assets	36,557			38,542
Deferred tax liabilities:
Property, plant and equipment	433			1,100
Other	688			875
Total deferred liabilities	1,121			1,975
Net deferred tax assets before valuation allowance	35,436			36,567
Valuation allowance	(35,416		)	(36,516		)
Net deferred tax assets	$	20		$	51

Reconciliation of the beginning and ending amount of unrecognized tax benefits

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

	(Dollars in thousands)
	December 31,
	2016			2015
Balance at beginning of year	$	3,136		$	2,964
Additions for tax positions of current year	544			146
Additions for tax positions of prior years	116			26
Reductions for tax positions of prior year	(547		)	—
Balance at end of year	$	3,249		$	3,136