Income Taxes Income Tax (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (loss) from continuing operations before income taxes

Income from operations before income taxes consisted of the following:

	(Dollars in thousands)
	Year Ended December 31,
	2019		2018
United States	$	5,418	$	6,839
Canada	4,256		24
	$	9,674	$	6,863

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,
	2019			2018
Current income tax expense:
U.S. state	$	136		$	165
Canada	291			257
Total	$	427		$	422
Deferred income tax expense (benefit):
U.S. federal	$	2,012		$	721
U.S. state	303			(464		)
Canada	(289		)	(30		)
Total	$	2,026		$	227
Total income tax expense (benefit):
U.S. federal	$	2,012		$	721
U.S. state	439			(299		)
Canada	2			227
Total	$	2,453		$	649

Reconciliation between effective income tax rate and statutory federal rate

The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows:

	Year Ended December 31,
	2019		2018
Statutory Federal rate	21.0	%	21.0	%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(4.5	)	3.7
Change in valuation allowance - reversal	(13.6	)	—
Capital loss	13.6		—
Stock compensation	(11.5	)	(4.5	)
Compensation deduction limitation	10.1		—
State and local taxes, net	4.5		4.7
Foreign income inclusion	3.1		(13.3	)
Meals & entertainment	1.8		2.4
Change in uncertain tax positions	(1.0	)	(1.4	)
Provision to return differences	0.2		(9.3	)
Foreign currency loss	—		2.5
Alternative minimum tax	—		1.4
Other items, net	1.7		2.3
Provision for income taxes	25.4	%	9.5	%

Deferred tax assets and liabilities

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

	(Dollars in thousands)
	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforward	$	7,786		$	9,878
Compensation and benefits	9,947			9,598
Inventory reserve	1,589			1,769
Accounts receivable reserve	152			142
Lease assets	3,326			—
Capital loss carryforward	—			1,317
Other	146			457
Total deferred tax assets	22,946			23,161
Deferred tax liabilities:
Intangible assets	2,360			2,478
Lease liabilities	2,850			—
Property, plant and equipment	353			(20		)
Other	625			303
Total deferred liabilities	6,188			2,761
Net deferred tax assets before valuation allowance	16,758			20,400
Valuation allowance	(1,235		)	(2,569		)
Net deferred tax assets	$	15,523		$	17,831

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,
	2019			2018
Balance at beginning of year	$	3,612		$	4,255
Additions for tax positions of current year	13			43
Additions for tax positions of prior years	121			85
Reductions for tax positions of prior year	(29		)	(771		)
Lapse of statute of limitations	(475		)	—
Balance at end of year	$	3,242		$	3,612