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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Taxes [Abstract] |
Income Taxes | 18. Income Taxes The income tax provision (benefit) consists of the following (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current: |  |  |  |  |  |  |  |  |
Domestic |  | $ | 14,632 |  |  | $ | 26,821 |  |  | $ | 30,742 |
Foreign |  |  | 3,019 |  |  |  | 3,180 |  |  |  | 3,139 |
Total current |  |  | 17,651 |  |  |  | 30,001 |  |  |  | 33,881 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | 4,677 |  |  |  | (10,132 | ) |  |  | 18,833 |
Foreign |  |  | 417 |  |  |  | 108 |  |  |  | 98 |
Total deferred |  |  | 5,094 |  |  |  | (10,024 | ) |  |  | 18,931 |
Total income tax provision |  | $ | 22,745 |  |  | $ | 19,977 |  |  | $ | 52,812 |
In December 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which included a broad range of tax reform affecting businesses, including the reduction of the federal corporate tax rate from 35% to 21%, changes in the deductibility of certain business expenses, and the manner in which international operations are taxed in the U.S. In connection with the enactment of the Act, our income tax provision for the fourth quarter of 2017 included an increase of $17.5 million, reflecting an increase of $16.1 million for the remeasurement of our net deferred tax assets and an increase in tax of $1.4 million due to the deemed repatriation of earnings of our foreign subsidiaries. As related to the deemed repatriation of earnings of foreign subsidiaries, the Act includes a mandatory one-time tax on accumulated earnings of foreign subsidiaries. As a result, all previously unremitted earnings for which no U.S. deferred tax liability had been accrued are now subject to U.S. tax. In accordance with the guidelines provided in the Act, as of December 31, 2017 we aggregated our estimated foreign earnings and profits, and utilized participating deductions and available foreign tax credits. The gross repatriation tax was $2.3 million, which was offset by $0.9 million of foreign tax credits for a net repatriation tax charge of $1.4 million. During 2018, we refined and updated our calculation of the gross repatriation tax to $2.7 million, which was paid to the U.S. Treasury. The difference in the refined and updated repatriation tax and what was previously recorded in the fourth quarter of 2017 was reflected in the 2018 tax provision. Notwithstanding the U.S. taxation of these amounts, we intend to continue to invest most or all of these earnings indefinitely outside of the U.S., and do not expect to incur any significant additional taxes related to such amounts. Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
U.S. Federal income tax rate of 21% in 2019 and 2018, and 35% in 2017 |  | $ | 19,277 |  |  | $ | 16,135 |  |  | $ | 33,755 |
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 3,328 |  |  |  | 2,781 |  |  |  | 3,138 |
Income tax (tax benefits) attributable to foreign income |  |  | 191 |  |  |  | 1,598 |  |  |  | (149 | )
Other non-deductible items, net |  |  | (409 | ) |  |  | (559 | ) |  |  | (1,319 | )
Impact of Tax Cuts and Jobs Act |  |  | — |  |  |  | — |  |  |  | 17,515 |
Change in valuation allowance |  |  | 358 |  |  |  | 22 |  |  |  | (128 | )
Provision for income taxes |  | $ | 22,745 |  |  | $ | 19,977 |  |  | $ | 52,812 |
The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |
Inventories |  | $ | 12,077 |  |  | $ | 12,798 |
Allowance for customer returns |  |  | 11,969 |  |  |  | 16,836 |
Postretirement benefits |  |  | 50 |  |  |  | 58 |
Allowance for doubtful accounts |  |  | 1,262 |  |  |  | 1,371 |
Accrued salaries and benefits |  |  | 9,826 |  |  |  | 9,147 |
Tax credit carryforwards |  |  | 609 |  |  |  | 272 |
Accrued asbestos liabilities |  |  | 13,132 |  |  |  | 11,872 |
Other |  |  | 148 |  |  |  | 127 |
|  |  | 49,073 |  |  |  | 52,481 |
Valuation allowance |  |  | (757 | ) |  |  | (399 | )
Total deferred tax assets |  |  | 48,316 |  |  |  | 52,082 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | 7,706 |  |  |  | 7,755 |
Other |  |  | 3,338 |  |  |  | 1,993 |
Total deferred tax liabilities |  |  | 11,044 |  |  |  | 9,748 |
Net deferred tax assets |  | $ | 37,272 |  |  | $ | 42,334 |
In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, carryback and carryforward periods, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. We also consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings. Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business. The valuation allowance of $0.8 million as of December 31, 2019 is intended to provide for uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we would realize the benefit of the net deferred tax asset of $37.3 million as of December 31, 2019, which is net of the remaining valuation allowance. At December 31, 2019, we have foreign tax credit carryforwards of approximately $0.6 million that will expire in varying amounts by 2028. In accordance with generally accepted accounting practices, we recognize in our financial statements only those tax positions that meet the more-likely-than-not recognition threshold. We establish tax reserves for uncertain tax positions that do not meet this threshold. During the years ended December 31, 2019, 2018 and 2017, we did not establish a liability for uncertain tax positions. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2019, the Company is no longer subject to U.S. Federal tax examinations for years before 2016. We remain subject to examination by state and local tax authorities for tax years 2015 through 2018. Foreign jurisdictions have statutes of limitations generally ranging from 2 to 6 years. Years still open to examination by foreign tax authorities in major jurisdictions include Canada (2015 onward), Hong Kong (2014 onward), Mexico (2015 onward) and Poland (2014 onward). We do not presently anticipate that our unrecognized tax benefits will significantly increase or decrease over the next 12 months; however, actual developments in this area could differ from those currently expected.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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