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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The jurisdictional components of income before taxes consist of the following:
|  | December 31, |  |  |  |
(in thousands) |  | 2018 |  | 2017 |  | 2016
Income before income taxes: |  |  |  |  |  |
Domestic |  | $ | 66,858 |  | $ | 61,329 |  | $ | 44,446
Foreign |  | 27,673 |  | 21,038 |  | 17,743
|  | $ | 94,531 |  | $ | 82,367 |  | $ | 62,189
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) consist of the following:
|  | December 31, |  |  |  |
(in thousands) |  | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |  |
Domestic |  | $ | 6,771 |  | $ | 26,713 |  | $ | 11,958
Foreign |  | 7,391 |  | 6,222 |  | 5,491
State |  | 4,831 |  | 3,789 |  | 2,075
|  | 18,993 |  | 36,724 |  | 19,524
Deferred: |  |  |  |  |  |
Domestic |  | 2,542 |  | 1,711 |  | 1,580
Foreign |  | (390) |  | (155) |  | 934
State |  | (100) |  | (228) |  | 106
|  | 2,052 |  | 1,328 |  | 2,620
Total income taxes |  | $ | 21,045 |  | $ | 38,052 |  | $ | 22,144
Schedule of Effective Income Tax Rate Reconciliation | The difference between income tax expense (benefit) for financial statement purposes and the amount of income tax expense computed by applying the domestic statutory income tax rate of 21% in 2018 and 35% in 2017 and 2016 to income before income taxes consists of the following:
|  | December 31, |  |  |  |
(in thousands) |  | 2018 |  | 2017 |  | 2016
Income tax expense at statutory rates |  | $ | 19,851 |  | $ | 28,828 |  | $ | 21,766
Increase (reduction) from: |  |  |  |  |  |
Jurisdictional rate differences |  | 719 |  | (1,863) |  | (1,936)
Valuation allowance |  | (267) |  | 308 |  | 1,731
Stock based compensation |  | (205) |  | (778) |  | 275
U.S. state taxes |  | 3,917 |  | 2,463 |  | 1,295
Domestic production deduction |  | — |  | (1,039) |  | (618)
R&D credit |  | (531) |  | (500) |  | (329)
GILTI |  | 673 |  | — |  | —
Other, net |  | 219 |  | 397 |  | (40)
Provision for income taxes before tax reform |  | $ | 24,376 |  | $ | 27,816 |  | $ | 22,144
Effective tax rate before effects of tax reform |  | 26 | % |  | 34 | % |  | 36 | %
Tax Reform: |  |  |  |  |  |
Rate change of deferreds |  | 1,200 |  | (3,334) |  | —
Transition tax on deemed repatriation |  | (4,531) |  | 13,104 |  | —
Other |  | — |  | 466 |  | —
Impact of tax reform |  | $ | (3,331) |  | $ | 10,236 |  | $ | —
Provision for income tax |  | $ | 21,045 |  | $ | 38,052 |  | $ | 22,144
Effective tax rate |  | 22 | % |  | 46 | % |  | 36 | %
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred income tax assets and liabilities consist of the following:
|  | December 31, |  |
(in thousands) |  | 2018 |  | 2017
Deferred income tax assets: |  |  |  |
Inventory basis difference |  | $ | 1,825 |  | $ | 571
Accounts receivable reserve |  | 251 |  | 310
Rental equipment and Property, plant and equipment |  | 56 |  | 4
Stock based compensation |  | 672 |  | 549
Pension liability |  | 3,204 |  | 2,859
Employee benefit accrual |  | 1,911 |  | 2,193
Product liability and warranty reserves |  | 1,294 |  | 1,211
Foreign net operating loss |  | 4,164 |  | 4,266
State net operating loss |  | 148 |  | 286
Foreign tax credit |  | — |  | 4,106
Other |  | (156) |  | 216
Total deferred income tax assets |  | $ | 13,369 |  | $ | 16,571
Less: Valuation allowance |  | (3,696) |  | (8,519)
Net deferred income tax assets |  | $ | 9,673 |  | $ | 8,052
Deferred income tax liabilities: |  |  |  |
Rental equipment and Property, plant and equipment |  | (9,928) |  | (7,477)
Intangible assets |  | (8,944) |  | (7,064)
Expenses not currently deductible for book purposes |  | (749) |  | (887)
Total deferred income tax liabilities |  | $ | (19,621) |  | $ | (15,428)
Net deferred income taxes |  | $ | (9,948) |  | $ | (7,376)
Schedule of Unrecognized Tax Benefits Roll Forward | We do not expect our unrecognized tax benefits disclosed above to change significantly over the next 12 months.
Unrecognized Tax Benefits |  |  |  |
|  | December 31, |  |
|  | 2018 |  | 2017
Balance as of beginning of year |  | $ | 234,000 |  | $ | 235,000
Additions for tax positions related to the current year |  | 63,000 |  | 62,000
Additions for tax positions related to prior years |  | — |  | —
Reduction due to lapse of statute of limitations |  | (61,000) |  | (63,000)
Balance as of end of year |  | $ | 236,000 |  | $ | 234,000

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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