Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income Tax Expense (Benefit)

The components of income (loss) from continuing operations before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows:



	2018			2017
Income (loss) before income tax provision (benefit)
Domestic	$	45,170		$	31,454
Foreign	(3,007		)	(2,352		)
	$	42,163		$	29,102
Income tax provision (benefit)
Current income tax provision (benefit):
Federal	$	(2,296	)	$	(3,885	)
State	393			435
Total current	(1,903		)	(3,450		)
Deferred income tax provision (benefit):
Federal	8,585			6,588
State	696			(2,499		)
Total deferred	9,281			4,089
	$	7,378		$	639

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory and effective income tax rate from continuing operations for the years ended December 31 is as follows:



	2018			2017
Income from continuing operations before income tax provision	$	42,163		$	29,102
Statutory taxes at 21.0% and 35.0%, respectively	$	8,854		$	10,186
State and local income taxes	1,241			493
Valuation allowances	640			(1,453		)
Non-deductible expenses	663			224
Percentage depletion	(4,199		)	(6,253		)
R&D and other federal credits	(37		)	301
Effect of the TCJA	—			(3,132		)
Other, net	216			273
Income tax provision from continuing operations	$	7,378		$	639
Effective income tax rate from continuing operations	17.5		%	2.2		%

Deferred Tax Assets and Liabilities

A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax bases of assets and liabilities follows:



	December 31
	2018			2017
Deferred tax assets
Tax carryforwards	$	19,058		$	22,035
Inventories	2,041			1,878
Accrued expenses and reserves	9,860			11,723
Other employee benefits	4,892			4,640
Other	9,347			8,933
Total deferred tax assets	45,198			49,209
Less: Valuation allowance	14,219			13,579
	30,979			35,630
Deferred tax liabilities
Depreciation and depletion	27,299			23,029
Partnership investment - development costs	5,146			4,069
Accrued pension benefits	1,380			2,570
Total deferred tax liabilities	33,825			29,668
Net deferred (liability) asset	$	(2,846	)	$	5,962

Summary of Tax Credit Carryforwards

The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain:



	December 31, 2018
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	2,340	$	2,340	2024-2026
State losses	16,624		13,182		2019-2038
Research credit	1,198		—		2034-2038
Alternative minimum tax credit	2,310		—		(1)
Total	$	22,472	$	15,522



	December 31, 2017
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	1,438	$	1,438	2024-2025
State losses	16,948		13,054		2018-2037
Research credit	1,870		—		2034-2037
Alternative minimum tax credit	5,335		—		(1)
Total	$	25,591	$	14,492

(1) The TCJA repealed the corporate alternative minimum tax for tax years beginning after December 31, 2017. This credit is refundable in 2021, if not fully utilized prior to 2021.

Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2018 and 2017. Approximately $1.1 million and $0.8 million of these gross amounts as of December 31, 2018 and 2017, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein.



	2018		2017
Balance at January 1	$	997	$	915
Additions based on tax positions related to prior years	283		—
Additions based on tax positions related to the current year	—		82
Balance at December 31	$	1,280	$	997