XML 37 R24.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 14. Income Taxes Income from continuing operations before income taxes, as shown in the accompanying Consolidated Statements of Operations, includes the following components for the years ended December 31, 2021 and 2020:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  |
Domestic |  | $ | 2,772 |  |  | $ | 9,618 |  |  |
Foreign |  | 1,818 |  |  | 4,364 |  |  |
Income from continuing operations, before income taxes |  | $ | 4,590 |  |  | $ | 13,982 |  |  |
Significant components of the provision for income taxes for the years ended December 31, 2021 and 2020 were as follows:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  |
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | (9,506) |  |  |
State |  | (237) |  |  | 130 |  |  |
Foreign |  | 1,217 |  |  | 1,852 |  |  |
Total current |  | 980 |  |  | (7,524) |  |  |
Deferred: |  |  |  |  |  |
Federal |  | (675) |  |  | (292) |  |  |
State |  | 1,450 |  |  | (3,458) |  |  |
Foreign |  | (636) |  |  | (567) |  |  |
Total deferred |  | 139 |  |  | (4,317) |  |  |
Total income tax expense (benefit) |  | $ | 1,119 |  |  | $ | (11,841) |  |  |
The reconciliation of income tax computed at statutory rates to income tax expense for the years ended December 31, 2021 and 2020 is as follows:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  |
|  | Amount |  | Percent |  | Amount |  | Percent |  |  |  |
Statutory rate |  | $ | 964 |  |  | 21.0 | % |  | $ | 2,936 |  |  | 21.0 | % |  |  |  |
Foreign tax rate differential |  | 20 |  |  | 0.4 |  |  | 65 |  |  | 0.5 |  |  |  |  |
State income taxes, net of federal benefit |  | 132 |  |  | 2.9 |  |  | 1,003 |  |  | 7.2 |  |  |  |  |
Non-deductible expenses |  | 153 |  |  | 3.3 |  |  | 181 |  |  | 1.3 |  |  |  |  |
Tax benefits related to disposition of the Test and Inspection Services business |  | (2,130) |  |  | (46.4) |  |  | (16,282) |  |  | (116.4) |  |  |  |  |
U.S. taxation of foreign income, net of tax credits |  | 32 |  |  | 0.7 |  |  | 621 |  |  | 4.4 |  |  |  |  |
Income tax credits |  | (227) |  |  | (4.9) |  |  | (1,357) |  |  | (9.7) |  |  |  |  |
Nondeductible executive compensation |  | 17 |  |  | 0.4 |  |  | 132 |  |  | 0.9 |  |  |  |  |
Change in income tax rates |  | 379 |  |  | 8.3 |  |  | 138 |  |  | 1.0 |  |  |  |  |
Tax on unremitted foreign earnings |  | (68) |  |  | (1.5) |  |  | 174 |  |  | 1.2 |  |  |  |  |
Change in valuation allowance |  | 1,807 |  |  | 39.4 |  |  | 731 |  |  | 5.2 |  |  |  |  |
Other |  | 40 |  |  | 0.9 |  |  | (183) |  |  | (1.3) |  |  |  |  |
Total income tax expense (benefit) / Effective rate |  | $ | 1,119 |  |  | 24.4 | % |  | $ | (11,841) |  |  | (84.7) | % |  |  |  |
Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows:
|  | December 31,
|  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Goodwill and other intangibles |  | $ | 7,047 |  |  | $ | 7,857 |
Accrued settlement |  | 6,000 |  |  | 8,112 |
Deferred compensation |  | 2,165 |  |  | 2,351 |
Contingent liabilities |  | 644 |  |  | 649 |
Net operating loss / tax credit carryforwards |  | 28,932 |  |  | 25,123 |
Pension and post-retirement liability |  | 1,218 |  |  | 1,696 |
Inventories |  | 500 |  |  | 1,529 |
Warranty reserve |  | 248 |  |  | 297 |
Accounts receivable |  | 129 |  |  | 214 |
Interest deduction carryforward |  | 161 |  |  | — |
Other |  | 767 |  |  | 709 |
Total deferred tax assets |  | 47,811 |  |  | 48,537 |
Less: valuation allowance |  | (3,290) |  |  | (1,483) |
Net deferred tax assets |  | 44,521 |  |  | 47,054 |
Deferred tax liabilities: |  |  |  |
Goodwill and other intangibles |  | (3,814) |  |  | (4,116) |
Depreciation |  | (6,919) |  |  | (7,140) |
Inventory § 481(a) adjustment |  | — |  |  | (1,027) |
Unremitted earnings of foreign subsidiaries |  | (220) |  |  | (200) |
Other |  | (79) |  |  | (175) |
Total deferred tax liabilities |  | (11,032) |  |  | (12,658) |
Net deferred tax assets |  | $ | 33,489 |  |  | $ | 34,396 |
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act of 2020 (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act contains several corporate income tax provisions, including providing for a five-year carryback of net operating losses (“NOL”) generated in tax years 2018 through 2020, removing the 80% taxable income limitation on utilization of those NOLs if carried back to prior tax years or utilized in tax years beginning before 2021, making remaining alternative minimum tax (“AMT”) credits immediately refundable, and temporarily relaxing the interest deductibility rules by raising the adjusted taxable income limitation from 30% to 50% for tax years 2019 and 2020. As of December 31, 2021, the Company has recorded an income tax receivable of $8,500 to reflect expected tax refunds of federal taxes paid within the five year NOL carryback period. 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. As of December 31, 2021, the positive evidence considered in evaluating U.S. deferred tax assets included cumulative domestic financial income over the three-year period ended December 31, 2021, as well as the composition and reversal patterns of existing taxable and deductible temporary differences between financial reporting and tax. Based on its evaluation, the Company believed it was appropriate to rely on forecasted future taxable income to support its U.S. deferred tax assets. The amount of deferred tax assets considered realizable; however, could be adjusted if negative evidence outweighs additional subjective evidence such as the Company’s projections for growth. As of December 31, 2021, the Company has a federal NOL carryforward of $90,321, which is limited to 80% of taxable income annually, but may be carried forward indefinitely. The Company also has federal research tax credit carryforwards in the amount of $1,376 that will expire at various times from 2036 through 2041. The Company believes it is more likely than not that the tax benefits from the federal loss carryforwards and research tax credit carryforwards will be realized. As of December 31, 2021 and 2020, the tax benefit of NOL carryforwards available for state income tax purposes was $9,643 and $8,320, respectively. Many state NOL carryforwards will expire in various years through 2041, while some may be carried forward indefinitely. The Company believes it is more likely than not that a portion of the tax benefit from state operating loss carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $2,430, net of federal benefit, against deferred tax assets related to state operating loss carryforwards as of December 31, 2021. As of December 31, 2021, the Company has NOL carryforwards in certain foreign jurisdictions of $2,921, which may be carried forward indefinitely. The foreign jurisdictions have incurred cumulative financial losses over the three-year period ended December 31, 2021 and have projected future taxable losses. The Company believes it is more likely than not that the tax benefit from these loss carryforwards will not be realized. In recognition of this risk, it has provided a valuation allowance of $860, collectively, against deferred tax assets in foreign jurisdictions as of December 31, 2021. The determination to record or not record a valuation allowance involves management judgment, 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. Each quarter, management reviews operations and liquidity needs in each jurisdiction to assess the Company’s intent to reinvest foreign earnings outside of the U.S. As of December 31, 2021, management determined that cash balances of its Canadian and United Kingdom subsidiaries exceeded projected capital needs by $4,400. Management does not intend for such amounts to be permanently reinvested outside of the U.S. and has therefore accrued foreign withholding taxes of $220 as of December 31, 2021. It is management’s intent and practice to indefinitely reinvest other undistributed earnings outside of the U.S. 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. The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2021 and 2020:
|  | December 31,
|  | 2021 |  | 2020
Unrecognized tax benefits at beginning of period: |  | $ | 409 |  |  | $ | 414 |
Decreases based on tax positions for prior periods |  | (44) |  |  | (5) |
Balance at end of period |  | $ | 365 |  |  | $ | 409 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $365 as of December 31, 2021. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. As of December 31, 2021 and 2020, the Company had accrued interest and penalties related to unrecognized tax benefits of $333 and $333, respectively. As of December 31, 2021, the Company did not expect any material increases or decreases to its unrecognized tax benefits within the next 12 months. Ultimate realization of these tax benefits 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 U.S. and in various state, local, and foreign jurisdictions. The Company is subject to federal income tax examinations for the 2018 period and thereafter. With respect to the state, local, and foreign filings, certain entities of the Company are subject to income tax examinations for the 2017 period and thereafter.

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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration