Income Taxes Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income (loss) from continuing operations before income taxes

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

	(Dollars in thousands)
	Year Ended December 31,
	2018		2017
United States	$	6,839	$	10,159
Canada	24		(65		)
	$	6,863	$	10,094

Components of provision (benefit) for income taxes

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

	(Dollars in thousands)
	Year Ended December 31,
	2018			2017
Current income tax expense (benefit):
U.S. federal	$	—		$	296
U.S. state	165			129
Canada	257			1,209
Total	$	422		$	1,634
Deferred income tax expense (benefit):
U.S. federal	$	721		$	(17,971	)
U.S. state	(464		)	(3,257		)
Canada	(30		)	—
Total	$	227		$	(21,228	)
Total income tax expense (benefit):
U.S. federal	$	721		$	(17,675	)
U.S. state	(299		)	(3,128		)
Canada	227			1,209
Total	$	649		$	(19,594	)

Reconciliation between effective income tax rate and statutory federal rate

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

	Year Ended December 31,
	2018		2017
Statutory Federal rate	21.0	%	35.0	%
Increase (decrease) resulting from:
Change in valuation allowance - reversal	—		(210.5	)
Change in valuation allowance - federal tax rate change	—		(126.4	)
Change in valuation allowance - current period activity	3.7		(65.7	)
Federal tax rate change	—		126.4
Foreign income inclusion	(13.9	)	29.2
Change in uncertain tax positions	(1.4	)	7.7
State and local taxes, net	4.7		4.7
Stock compensation	(4.5	)	(1.9	)
Meals & entertainment	2.4		1.4
Alternative Minimum Tax	1.4		3.6
Provision to return differences	(9.3	)	(0.7	)
Foreign Currency Loss	2.5		—
Other items, net	2.9		3.1
Provision for income taxes	9.5	%	(194.1	)%

Deferred tax assets and liabilities

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

	(Dollars in thousands)
	December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforward	$	9,878		$	12,120
Compensation and benefits	9,598			7,828
Inventory reserve	1,769			1,689
Capital loss carryforward	1,317			1,326
Accounts receivable reserve	142			130
Other	457			1,155
Total deferred tax assets	23,161			24,248
Deferred tax liabilities:
Intangible assets	2,478			3,115
Property, plant and equipment	(20		)	41
Other	303			403
Total deferred liabilities	2,761			3,559
Net deferred tax assets before valuation allowance	20,400			20,689
Valuation allowance	(2,569		)	(2,556		)
Net deferred tax assets	$	17,831		$	18,133

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,
	2018			2017
Balance at beginning of year	$	4,255		$	3,249
Additions for tax positions of current year	43			865
Additions for tax positions of prior years	85			141
Reductions for tax positions of prior year	(771		)	—
Balance at end of year	$	3,612		$	4,255