XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.20.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2020
INCOME TAXES |
INCOME TAXES | NOTE 15—INCOME TAXES The components of income before income taxes for the years ended December 31, 2020 and 2019 consists of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended December 31, | ​
​ |  | 2020 |  | 2019 |
Domestic | ​ | $ | (3,361) | ​ | $ | 1,206 | ​
Foreign | ​ |  | 9,229 | ​ |  | 5,933 | ​
Total income before income taxes | ​ | $ | 5,868 | ​ | $ | 7,139 | ​
​ The components of the 2020 and 2019 income tax provision are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended December 31, | ​
​ |  | 2020 |  | 2019 |
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | (1,368) | ​ | $ | (327) | ​
State | ​ |  | 564 | ​ |  | 603 | ​
Foreign | ​ |  | 3,088 | ​ |  | 2,431 | ​
Total current provision | ​ |  | 2,284 | ​ |  | 2,707 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 365 | ​ |  | (123) | ​
State | ​ |  | (68) | ​ |  | (140) | ​
Foreign | ​ |  | 532 | ​ |  | 1,354 | ​
Total deferred benefit | ​ |  | 829 | ​ |  | 1,091 | ​
Total | ​ | $ | 3,113 | ​ | $ | 3,798 | ​
​ The differences between the effective tax rates reflected in the total provision for income taxes and the U.S. federal statutory rate of 21% for both years ended December 31, 2020 and 2019 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended December 31,
​ |  | 2020 |  | 2019 |
Tax provision computed at 21% |  | $ | 1,232 | ​ | $ | 1,499 | ​
Nondeductible expenses | ​ |  | 718 | ​ |  | 521 | ​
State income taxes, net of federal benefit | ​ |  | 400 | ​ |  | 327 | ​
Tax impact of foreign operations | ​ |  | 339 | ​ |  | 1,347 | ​
Valuation allowances increase (release) | ​ |  | 517 | ​ |  | (141) | ​
Net increase (decrease) of uncertain tax positions | ​ |  | (34) | ​ |  | (34) | ​
Other | ​ |  | (59) | ​ |  | 279 | ​
Income tax provision | ​ | $ | 3,113 | ​ | $ | 3,798 | ​
Effective income tax rates | ​ |  | 53.1 | % |  | 53.2 | %
​ The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |
​ | ​ | 2020 | ​ | 2019 | ​
Noncurrent deferred tax asset | ​ | ​ | ​ | ​ | ​ | ​ | ​
Compensation related expenses | ​ | $ | 2,081 | ​ | $ | 2,279 | ​
Foreign currency translation | ​ |  | 1,697 | ​ |  | 2,458 | ​
U.S. foreign tax credit carryovers | ​ |  | 1,194 | ​ |  | 879 | ​
Foreign net operating loss carryovers | ​ |  | 4,943 | ​ |  | 5,563 | ​
Accruals and reserves | ​ |  | 1,026 | ​ |  | 1,404 | ​
Operating lease right-of-use assets | ​ | ​ | 1,396 | ​ | ​ | 2,034 | ​
Other | ​ |  | 405 | ​ |  | 224 | ​
Valuation allowance for deferred tax assets | ​ |  | (3,707) | ​ |  | (3,989) | ​
Total noncurrent deferred tax asset | ​ |  | 9,035 | ​ |  | 10,852 | ​
Noncurrent deferred tax liability | ​ | ​ | ​ | ​ | ​ | ​ | ​
Depreciable assets | ​ |  | (699) | ​ |  | (510) | ​
Prepaids | ​ |  | (428) | ​ |  | (514) | ​
Intangible assets | ​ |  | (911) | ​ |  | (1,177) | ​
Investment in foreign subsidiaries | ​ |  | (3,664) | ​ |  | (3,323) | ​
Foreign earnings distribution taxes | ​ |  | (851) | ​ |  | (1,741) | ​
Foreign intangibles and reserves | ​ |  | (2,888) | ​ |  | (1,754) | ​
Operating lease liabilities | ​ | ​ | (1,160) | ​ | ​ | (1,716) | ​
Total noncurrent deferred tax liability | ​ |  | (10,601) | ​ |  | (10,735) | ​
Net noncurrent deferred tax (liability) asset | ​ |  | (1,566) | ​ |  | 117 | ​
Net deferred tax (liability) asset | ​ | $ | (1,566) | ​ | $ | 117 | ​
​ A valuation allowance was established at December 31, 2020 and 2019 due to estimates of future utilization of net operating loss carryovers in the U.S. and certain foreign jurisdictions, derived primarily from acquisitions and recorded through purchase accounting. The valuation allowance at December 31, 2020 and 2019 also includes a full valuation for the Company’s foreign tax credit carryovers and foreign taxes on its controlled foreign corporations. As of December 31, 2020, the Company has foreign net operating loss (NOL) carryforwards of approximately $14.3 million. If not utilized, these NOL carryforwards begin to expire in 2021. The Company also has a federal tax credit carryforward of approximately $1.2 million, which will begin to expire in 2026, if not utilized. Uncertain tax positions Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. It is the Company’s policy to accrue for interest and penalties related to its uncertain tax positions within income tax expense. A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​
​ |  | 2020 |  | 2019 |
Balance, beginning of year | ​ | $ | 1,534 | ​ | $ | 1,475 | ​
Additions as a result of tax positions taken during the current period | ​ |  | 69 | ​ |  | 90 | ​
Reductions as a result of tax positions taken during a prior period | ​ |  | (34) | ​ |  | — | ​
Reductions as a result of lapse of statute | ​ |  | — | ​ |  | (31) | ​
Balance, end of year | ​ | $ | 1,569 | ​ | $ | 1,534 | ​
​ We do not expect our unrecognized tax benefits to significantly change in the next twelve months. The Company has recognized through income tax expense approximately $0.9 million of interest and penalties related to uncertain tax positions. The amount of unrecognized tax benefit, if recognized, that would impact the effective tax rate is $1.6 million. With few exceptions, the Company is no longer subject to U.S. federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2013.

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