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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
INCOME TAXES [Abstract] |
INCOME TAXES | NOTE 10 - INCOME TAXES The components of income before income taxes are as follows (in thousands):
|  | Years Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | 11,079 |  |  | $ | (42,179 | ) |  | $ | (21,349 | )
Foreign |  |  | (1,405 | ) |  |  | 3,259 |  |  |  | (4,207 | )
Total income before taxes |  | $ | 9,674 |  |  | $ | (38,920 | ) |  | $ | (25,556 | )
The provision for income taxes consists of the following (in thousands):
|  | Years Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current - |  |  |  |  |  |  |  |  |
Federal |  | $ | (902 | ) |  | $ | 5,182 |  |  | $ | 24,050 |
State |  |  | 136 |  |  |  | 1,499 |  |  |  | 5,604 |
Foreign |  |  | 602 |  |  |  | 2,493 |  |  |  | 2,150 |
|  |  | (164 | ) |  |  | 9,174 |  |  |  | 31,804 |
Deferred - |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,174 |  |  |  | (7,090 | ) |  |  | (10,544 | )
State |  |  | 120 |  |  |  | - |  |  |  | (1,769 | )
Foreign |  |  | (1,607 | ) |  |  | (1,934 | ) |  |  | 191 |
|  |  | 2,687 |  |  |  | (9,024 | ) |  |  | (12,122 | )
|  | $ | 2,523 |  |  | $ | 150 |  |  | $ | 19,682 |
The difference between income taxes computed at the federal statutory income tax rate (35%) and the provision for income taxes is as follows (in thousands):
|  | Years Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Income taxes computed at federal statutory rate |  | $ | 3,386 |  |  | $ | (13,622 | ) |  | $ | (8,945 | )
State income taxes, net of federal benefit |  |  | 166 |  |  |  | 974 |  |  |  | 2,492 |
Non-tax deductible impairment expense computed at federal statutory rate |  |  | - |  |  |  | 15,765 |  |  |  | 24,444 |
Foreign adjustment |  |  | 140 |  |  |  | 689 |  |  |  | 1,353 |
Meals and entertainment |  |  | 361 |  |  |  | 620 |  |  |  | 801 |
Gain on sale of Vertex |  |  | (1,971 | ) |  |  | - |  |  |  | - |
Domestic Production Activity Deduction |  |  | - |  |  |  | (1,143 | ) |  |  | (1,040 | )
Research and development tax credit |  |  | (886 | ) |  |  | (1,730 | ) |  |  | (587 | )
Foreign tax credit |  |  | (383 | ) |  |  | (921 | ) |  |  | (343 | )
Provision to return adjustments |  |  | 927 |  |  |  | - |  |  |  | - |
Other |  |  | 783 |  |  |  | (482 | ) |  |  | 1,507 |
|  | $ | 2,523 |  |  | $ | 150 |  |  | $ | 19,682 |
The net current and noncurrent components of deferred income tax balances are as follows (in thousands):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Net current assets |  | $ | 9,473 |  |  | $ | 8,996 |
Net non-current liabilities |  |  | (18,986 | ) |  |  | (6,312 | )
Net assets (liabilities) |  | $ | (9,513 | ) |  | $ | 2,684 |
Deferred tax liabilities and assets were comprised of the following (in thousands):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |
Goodwill |  | $ | 4,029 |  |  | $ | 9,136 |
Allowance for doubtful accounts |  |  | 2,469 |  |  |  | 2,692 |
Inventories |  |  | 3,944 |  |  |  | 3,312 |
Accruals |  |  | 1,978 |  |  |  | 2,354 |
Research and development credit carryforward |  |  | 886 |  |  |  | - |
Net operating loss carryforward |  |  | 760 |  |  |  | 730 |
Cumulative translation adjustment |  |  | - |  |  |  | 8,605 |
Capital loss carryforward |  |  | 18,903 |  |  |  | - |
Other |  |  | 309 |  |  |  | 730 |
Total deferred tax assets |  |  | 33,278 |  |  |  | 27,559 |
Less valuation allowance |  |  | (19,633 | ) |  |  | (730 | )
Total deferred tax asset, net of valuation Deferred tax liabilities |  |  | 13,645 |  |  |  | 26,829 |
Intangibles |  |  | (10,042 | ) |  |  | (13,314 | )
Property and equipment |  |  | (12,762 | ) |  |  | (10,824 | )
Unremitted foreign earnings |  |  | (354 | ) |  |  | (259 | )
Other |  |  | - |  |  |  | 252 |
Net deferred tax asset (liability) |  | $ | (9,513 | ) |  | $ | 2,684 |
At December 31, 2016, the Company had $49.9 million of capital loss carryforward and $2.7 million of foreign net operating loss carryforward. The Company has recorded a valuation allowance for 100% of these carryforward amounts. The valuation allowance represents a provision for uncertainty as to the realization of the tax benefits of these carryforwards and the deferred tax assets that may not be realized. Total deferred tax assets at December 31, 2016 were reduced by an $8.6 million charge recorded during the fourth quarter of 2016 to correct errors of $1.3 million, $2.7 million and $4.6 million which were recorded during 2013, 2014 and 2015, respectively, due to the Company improperly recognizing a deferred tax asset related to cumulative translation adjustment losses. The Company evaluated the misstatement of each period and concluded the effects were immaterial. Therefore, the Company decided to correct the accumulated $8.6 million error in the fourth quarter of 2016. We assessed the materiality of this misstatement and concluded the mistatement was not material to the results of operations or financial condition for the years ended December 31, 2016, 2015 and 2014.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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