XML 58 R22.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income (loss) before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows:
| 2019 |  | 2018
Income (loss) before income tax provision (benefit) |  |  |
Domestic | $ | 40,742 |  |  | $ | 45,170 |
Foreign | 2,657 |  |  | (3,007 | )
| $ | 43,399 |  |  | $ | 42,163 |
Income tax provision (benefit) |  |  |
Current income tax provision (benefit): |  |  |
Federal | $ | (6,473 | ) |  | $ | (2,296 | )
State | 939 |  |  | 393 |
Foreign | 603 |  |  | — |
Total current | (4,931 | ) |  | (1,903 | )
Deferred income tax provision: |  |  |
Federal | 8,125 |  |  | 8,585 |
State | 573 |  |  | 696 |
Total deferred | 8,698 |  |  | 9,281 |
| $ | 3,767 |  |  | $ | 7,378 |
The Company made income tax payments of $1.0 million and $0.5 million during 2019 and 2018, respectively. During the same periods, income tax refunds totaled $2.6 million and $0.1 million, respectively. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:
| 2019 |  | 2018
Income before income tax provision | $ | 43,399 |  |  | $ | 42,163 |
Statutory taxes at 21.0% | $ | 9,114 |  |  | $ | 8,854 |
State and local income taxes | 1,129 |  |  | 1,241 |
Non-deductible expenses | 736 |  |  | 663 |
Percentage depletion | (4,451 | ) |  | (4,199 | )
R&D and other federal credits | (255 | ) |  | (37 | )
Settlements | (2,377 | ) |  | 323 |
Other, net | (129 | ) |  | 533 |
Income tax provision | $ | 3,767 |  |  | $ | 7,378 |
Effective income tax rate | 8.7 | % |  | 17.5 | %
Income tax expense for the year ended December 31, 2019 included a net discrete tax benefit of $2.5 million primarily resulting from effective settlement of certain items from on-going examinations and changes in prior year estimates. Income tax expense for the year ended December 31, 2018 included $1.2 million of discrete tax expense primarily related to an additional valuation allowance provided against deferred tax assets in India as the Company had previously determined that such deferred tax assets do not meet the more likely than not standard for realization. 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
| 2019 |  | 2018
Deferred tax assets |  |  |
Lease liabilities | $ | 30,875 |  |  | $ | — |
Tax carryforwards | 16,305 |  |  | 19,058 |
Inventories | 1,704 |  |  | 2,041 |
Accrued liabilities | 10,020 |  |  | 9,860 |
Employee benefits | 4,853 |  |  | 4,892 |
Other | 9,005 |  |  | 9,347 |
Total deferred tax assets | 72,762 |  |  | 45,198 |
Less: Valuation allowance | 12,296 |  |  | 14,219 |
| 60,466 |  |  | 30,979 |
Deferred tax liabilities |  |  |
Lease right-of-use assets | 30,875 |  |  | — |
Depreciation and depletion | 28,061 |  |  | 27,299 |
Partnership investment - development costs | 9,949 |  |  | 5,146 |
Accrued pension benefits | 3,919 |  |  | 1,380 |
Total deferred tax liabilities | 72,804 |  |  | 33,825 |
Net deferred liability | $ | (12,338 | ) |  | $ | (2,846 | )
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, 2019
| Net deferred tax asset |  | Valuation allowance |  | Carryforwards expire during:
State net operating loss | $ | 16,531 |  |  | $ | 13,668 |  |  | 2020-2039
Federal research credit | 1,455 |  |  | — |  |  | 2034-2038
Federal foreign tax credit | 463 |  |  | 463 |  |  | 2029
Alternative minimum tax credit | 1,596 |  |  | — |  |  | (1)
Total | $ | 20,045 |  |  | $ | 14,131 |  |  |
| 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 net operating loss | 16,624 |  |  | 13,182 |  |  | 2019-2038
Federal research credit | 1,198 |  |  | — |  |  | 2034-2038
Alternative minimum tax credit | 2,310 |  |  | — |  |  | (1)
Total | $ | 22,472 |  |  | $ | 15,522 |  |  |
(1) This credit is refundable in 2021, if not fully utilized prior to 2021. The Company has a valuation allowance for certain state and foreign deferred tax assets. Based upon the review of historical earnings and the relevant expiration of carryforwards, including utilization limitations in the various state taxing jurisdictions, the Company believes the valuation allowances are appropriate and does not expect to release valuation allowances within the next twelve months that would have a significant effect on the Company's financial position or results of operations. The tax returns of the Company and certain of its subsidiaries are under routine examination by various taxing authorities. The Company has not been informed of any material assessment for which an accrual has not been previously provided and the Company would vigorously contest any material assessment. Management believes any potential adjustment would not materially affect the Company's financial condition or results of operations. In general, the Company operates in taxing jurisdictions that provide a statute of limitations period ranging from three to five years for the taxing authorities to review the applicable tax filings. The examination of the 2013-2016 U.S. federal tax returns is ongoing. The Company does not have any material taxing jurisdictions in which the statute of limitations has been extended beyond the applicable time frame allowed by law. 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, 2019 and 2018. Approximately $2.3 million and $1.1 million of these gross amounts as of December 31, 2019 and 2018, 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.
| 2019 |  | 2018
Balance at January 1 | $ | 1,280 |  |  | $ | 997 |
Additions based on tax positions related to prior years | 1,172 |  |  | 283 |
Additions based on tax positions related to the current year | 408 |  |  | — |
Balance at December 31 | $ | 2,860 |  |  | $ | 1,280 |
The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized net expense of less than $0.1 million in interest and penalties related to uncertain tax positions during 2019 and 2018, respectively. The total amount of interest and penalties accrued was $0.1 million and $0.1 million as of December 31, 2019 and 2018, respectively. The Company expects the amount of unrecognized tax benefits will change within the next 12 months; however, the change in unrecognized tax benefits, which is reasonably possible within the next 12 months, is not expected to have a significant effect on the Company's financial position, results of operations or cash flows.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration