Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income From Continuing Operations Before Income Taxes

Income from operations before income taxes consisted of the following:

	(Dollars in thousands)
	Year Ended December 31,
	2020		2019
United States	$	16,226	$	5,418
Canada	4,559		4,256
	$	20,785	$	9,674

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,
	2020		2019
Current income tax expense:
U.S. federal	$	3,858	$	—
U.S. state	710		136
Canada	1,288		291
Total	$	5,856	$	427
Deferred income tax expense (benefit):
U.S. federal	$	236	$	2,012
U.S. state	52		303
Canada	(472)		(289)
Total	$	(184)	$	2,026
Total income tax expense (benefit):
U.S. federal	$	4,094	$	2,012
U.S. state	762		439
Canada	816		2
Total	$	5,672	$	2,453

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,
	2020		2019
Statutory Federal rate	21.0	%	21.0	%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(2.2)		(4.5)
Change in valuation allowance - reversal	—		(13.6)
Capital loss	—		13.6
Stock compensation	(2.0)		(11.5)
Compensation deduction limitation	1.5		10.1
State and local taxes, net	3.8		4.5
Foreign income inclusion	—		3.1
Meals & entertainment	0.6		1.8
Change in uncertain tax positions	4.6		(1.0)
Provision to return differences	(0.1)		0.2
Other items, net	0.1		1.7
Provision for income taxes	27.3	%	25.4	%

Deferred Tax Assets and Liabilities

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

	(Dollars in thousands)
	December 31,
	2020		2019
Deferred tax assets:
Net operating loss carryforward	$	5,431	$	7,786
Compensation and benefits	10,980		9,947
Inventory reserve	1,772		1,589
Accounts receivable reserve	167		152
Leased assets	1,061		3,326
Other	329		146
Total deferred tax assets	19,740		22,946
Deferred tax liabilities:
Intangible assets	1,948		2,360
Lease liabilities	1,366		2,850
Property, plant and equipment	(975)		353
Other	503		625
Total deferred liabilities	2,842		6,188
Net deferred tax assets before valuation allowance	16,898		16,758
Valuation allowance	(1,257)		(1,235)
Net deferred tax assets	$	15,641	$	15,523

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,
	2020		2019
Balance at beginning of year	$	3,242	$	3,612
Additions for tax positions of current year	15		13
Additions for tax positions of prior years	1,413		121
Reductions for tax positions of prior year	—		(29)
Lapse of statute of limitations	(984)		(475)
Balance at end of year	$	3,686	$	3,242