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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes [Abstract] |
Income Taxes | Note 14. ﻿ Income Taxes ﻿ (Loss) income before income taxes, as shown in the accompanying consolidated statements of operations, includes the following components: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | 2016 |  | 2015 |  | 2014
﻿ |  |
﻿ |  |  |  |  |  |
﻿Domestic | $ | (151,027) | $ | (55,061) | $ | 30,766
﻿Foreign |  | 3,858 |  | 4,484 |  | 8,294
﻿(Loss) income from operations, before income taxes | $ | (147,169) | $ | (50,577) | $ | 39,060
﻿ Significant components of the provision for income taxes are as follows: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | 2016 |  | 2015 |  | 2014
﻿ |  |
﻿Current: |  |  |  |  |  |
﻿Federal | $ | (9,980) | $ | 5,571 | $ | 11,488
﻿State |  | (487) |  | 1,540 |  | 1,491
﻿Foreign |  | 1,583 |  | 1,339 |  | 3,339
﻿Total current |  | (8,884) |  | 8,450 |  | 16,318
﻿Deferred: |  |  |  |  |  |
﻿Federal |  | 2,555 |  | (12,016) |  | (2,321)
﻿State |  | 706 |  | (2,014) |  | (122)
﻿Foreign |  | 114 |  | (552) |  | (471)
﻿Total deferred |  | 3,375 |  | (14,582) |  | (2,914)
﻿Total income tax (benefit) expense | $ | (5,509) | $ | (6,132) | $ | 13,404
﻿ The reconciliation of income tax computed at statutory rates to income tax (benefit) expense is as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | 2016 | 2015 | 2014
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | Amount |  | Percent | Amount |  | Percent | Amount |  | Percent
﻿Statutory rate | $ | (51,509) |  | 35.0 | % | $ | (17,702) |  | 35.0 | % | $ | 13,671 |  | 35.0 | %
﻿Foreign tax rate differential |  | (485) |  | 0.3 |  |  | (419) |  | 0.8 |  |  | (870) |  | (2.2) |
﻿State income taxes, net of federal benefit |  | (2,893) |  | 2.0 |  |  | (159) |  | 0.3 |  |  | 1,065 |  | 2.7 |
﻿Non-deductible goodwill impairment |  | 11,448 |  | (7.8) |  |  | 12,737 |  | (25.2) |  |  | - |  | - |
﻿Non-deductible expenses |  | 262 |  | (0.2) |  |  | 452 |  | (0.9) |  |  | 708 |  | 1.8 |
﻿Domestic production activities deduction |  | 700 |  | (0.5) |  |  | (507) |  | 1.0 |  |  | (851) |  | (2.2) |
﻿Change in liability for unrecognized tax benefits |  | 42 |  | - |  |  | (198) |  | 0.4 |  |  | (327) |  | (0.8) |
﻿Change in permanent reinvestment assertion |  | 7,932 |  | (5.4) |  |  | - |  | - |  |  | - |  | - |
﻿Change in valuation allowance |  | 29,719 |  | (20.2) |  |  | - |  | - |  |  | - |  | - |
﻿Other |  | (725) |  | 0.5 |  |  | (336) |  | 0.7 |  |  | 8 |  | - |
﻿Total income tax (benefit) expense / Effective rate | $ | (5,509) |  | 3.7 | % | $ | (6,132) |  | 12.1 | % | $ | 13,404 |  | 34.3 | %
﻿ Significant components of the Company’s deferred tax assets and liabilities at December 31, 2016 and 2015 are as follows: ﻿
﻿ |  |  |  |
﻿ |  |  |  |
﻿ |  | 2016 |  | 2015
﻿ |  |
﻿Deferred tax assets: |  |  |  |
﻿Goodwill and other intangibles | $ | 32,699 | $ | 1,354
﻿Pension and post-retirement liability |  | 2,186 |  | 1,801
﻿Warranty reserve |  | 3,633 |  | 3,153
﻿Deferred compensation |  | 1,227 |  | 2,275
﻿Accounts receivable |  | 516 |  | 622
﻿Contingent liabilities |  | 2,336 |  | 2,087
﻿Long-term insurance reserves |  | 567 |  | 655
﻿Net operating loss / tax credit carryforwards |  | 1,384 |  | 1,006
﻿Other |  | 1,107 |  | 949
﻿Total deferred tax assets |  | 45,655 |  | 13,902
﻿Less: valuation allowance |  | (29,719) |  | -
﻿Net deferred tax assets |  | 15,936 |  | 13,902
﻿ |  |  |  |
﻿Deferred tax liabilities: |  |  |  |
﻿Goodwill and other intangibles | $ | (6,087) | $ | (7,155)
﻿Depreciation |  | (10,586) |  | (14,134)
﻿Unremitted earnings of foreign subsidiaries |  | (7,932) |  | -
﻿Inventories |  | (1,506) |  | -
﻿Investment in LB Pipe joint venture |  | (756) |  | (572)
﻿Other |  | (440) |  | (741)
﻿Total deferred tax liabilities |  | (27,307) |  | (22,602)
﻿Net deferred tax liabilites | $ | (11,371) | $ | (8,700)
﻿ Each quarter, management reviews operations and liquidity needs in each jurisdiction to assess the Company’s intent to reinvest foreign earnings outside of the United States. In 2016, management determined that cash balances of its Canadian and United Kingdom subsidiaries exceeded our projected capital needs. As a result, we do not intend for $23,000 of unremitted foreign earnings of our Canadian and United Kingdom subsidiaries to be permanently reinvested outside of the United States and accrued additional deferred U.S. income taxes and foreign withholding taxes of $7,932. ﻿ At December 31, 2016, the Company has not recorded deferred U.S. income taxes or foreign withholding taxes on $34,841 of undistributed earnings of its foreign subsidiaries. It is management’s intent and practice to indefinitely reinvest such earnings outside of the United States. Determination of the amount of any unrecognized deferred income tax liability associated with these undistributed earnings is not practicable because of the complexities of the hypothetical calculation. ﻿ A valuation allowance is required to be established or maintained when, based on currently available information and other factors, it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company has considered all available evidence, both positive and negative, in assessing the need for a valuation allowance in each jurisdiction. ﻿ The negative evidence considered in evaluating U.S. deferred tax assets included cumulative financial losses over the three-year period ended December 31, 2016, the inability to achieve forecasted results in 2016 and 2015, and recent declines in revenue. Positive evidence considered included the composition and reversal patterns of existing taxable and deductible temporary differences between financial reporting and tax, the composition of financial losses, and taxable income available to absorb the carryback of current year taxable losses. Cumulative financial losses over the three-year period ended December 31, 2016 were a significant piece of objective negative evidence, and typically limit a Company’s ability to consider other subjective evidence. Based on our evaluation, a valuation allowance of $29,719 was recorded at December 31, 2016 to recognize only the amount of deferred tax assets more likely than not to be realized. The amount of deferred tax assets considered realizable, however, could be adjusted if objective negative evidence in the form of cumulative financial losses is no longer present, and additional weight is given to subjective evidence such as our projections for growth. At December 31, 2016 and 2015, the tax benefit of net operating loss carryforwards available fo r state income tax purposes was $1,378 and $324, respectively. The state net operating loss carryforwards will expire in various years through 2036. We believe it is more likely than not that the tax benefit from state operating loss carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $1,378 against deferred tax assets related to state operating loss carryforwards at December 31, 2016. ﻿ The Company has foreign tax credit carryforwards in the amount of $244 that will expire in 2022 through 202 4. We believe it is more likely than not that the tax benefit from foreign tax credit carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $244 against deferred tax assets related to foreign tax credit carryforwards at December 31, 2016. In addition, the Company has not accrued tax benefits for unborn foreign tax credits that may be available upon repatriation of excess cash by its Canadian and United Kingdom subsidiaries. ﻿ At December 31, 2016, the Company has foreign net operating loss carryforwards in Brazil and Germany of $311 and $424, respectively, which may be carried forward indefinitely. Both jurisdictions incurred cumulative financial losses over the three-year period ended December 31, 2016 and have projected future taxable losses. We believe it is more likely than not that the tax benefit from these loss carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $274, collectively, against deferred tax assets in Brazil and Germany at December 31, 2016. ﻿ The determination to record or not record a valuation allowance involves management judgement, based on the consideration of positive and negative evidence available at the time of the assessment. Management will continue to assess the realization of its deferred tax assets based upon future evidence, and may record adjustments to valuation allowances against deferred tax assets in future periods, as appropriate, that could materially impact net income. ﻿ The following table provides a reconciliation of unrecognized tax benefits at December 31, 2016 and 2015: ﻿
﻿ |  |  |  |
﻿ |  |  |  |
﻿ |  | 2016 |  | 2015
﻿ |  |
﻿ |  |  |  |
﻿Unrecognized tax benefits at beginning of period: | $ | 582 | $ | 1,013
﻿Increases based on tax positions for prior periods |  | 37 |  | 147
﻿Decreases related to settlements with taxing authorities |  | - |  | (578)
﻿Balance at end of period | $ | 619 | $ | 582
﻿ The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $619 at December 31, 2016. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. At December 31, 2016 and 2015, the Company had accrued interest and penalties related to unrecognized tax benefits of $464 and $443, respectively. At December 31, 2016, the Company does not expect any material increases or decreases to its unrecognized tax benefits within the next 12 months. Ultimate realization of this decrease is dependent upon the occurrence of certain events, including the completion of audits by tax authorities and expiration of statutes of limitations. ﻿ ﻿ The Company files income tax returns in the United States and in various state, local and foreign jurisdictions. The Company is subject to federal income tax examinations for the period 2013 and forward. With respect to the state, local, and foreign filings, certain entities of the Company are subject to income tax examinations for the periods 2012 and forward.

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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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