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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Components of the provision for income taxes are as follows:
| 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal - US | $ | 11,000 |  |  | $ | 1,993,000 |  |  | $ | 3,408,000 |
Foreign | 1,023,000 |  |  | 613,000 |  |  | — |
State and local | 14,000 |  |  | 24,000 |  |  | 2,000 |
| 1,048,000 |  |  | 2,630,000 |  |  | 3,410,000 |
Deferred: |  |  |  |  |
Federal | (1,355,000 | ) |  | (407,000 | ) |  | 490,000 |
Foreign | (289,000 | ) |  | 52,000 |  |  | (86,000 | )
State and local | (68,000 | ) |  | 11,000 |  |  | 22,000 |
| (1,712,000 | ) |  | (344,000 | ) |  | 426,000 |
Provision (benefit) for income taxes | $ | (664,000 | ) |  | $ | 2,286,000 |  |  | $ | 3,836,000 |
A reconciliation of the income tax provision based on the federal statutory income tax rate to the Company's income tax provision for the years ended December 31 is as follows:
| 2018 |  | 2017 |  | 2016
Provision at US federal statutory rate | $ | (1,145,000 | ) |  | $ | 2,634,000 |  |  | $ | 3,823,000 |
Adjustments for US tax law changes | — |  |  | (185,000 | ) |  | — |
Excess tax liability (benefit) — equity transactions | 33,000 |  |  | (126,000 | ) |  | — |
Effect of foreign taxes | 213,000 |  |  | (58,000 | ) |  | 34,000 |
Adoption of ASC 606 | 236,000 |  |  | — |  |  | — |
State and local tax expense | (54,000 | ) |  | 35,000 |  |  | 24,000 |
Other | 53,000 |  |  | (14,000 | ) |  | (45,000 | )
Provision (benefit) for income taxes | $ | (664,000 | ) |  | $ | 2,286,000 |  |  | $ | 3,836,000 |
The Tax Cuts and Jobs Act (“the “Act”) was enacted on December 22, 2017. The Act reduced the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, creates new taxes on certain foreign sourced earnings, provides for acceleration of business asset expensing, and reduces the amount of executive pay that may qualify as a tax deduction, among other changes. FASB ASC 740 required the recognition of the effects of tax law changes in 2017. However, due to the complexities of the new tax legislation, the SEC issued SAB 118 which allowed for the recognition of provisional amounts during a measurement period. During 2017, the Company recorded a net benefit charge related to the re-measurement of the deferred tax balance of $484,000. Additionally, the Company recorded a provisional charge related to the transition tax, net of estimated foreign tax credits, of $299,000. The Company has since finalized the analysis and filed the 2017 United States income tax return. The actual impact of the one-time transition tax was materially consistent with the provisional amount booked at December 31, 2017. During first quarter 2017, the Company adopted Accounting Standards Update 2016-09, Compensation - Stock Compensation. The new standard provided for changes to accounting for stock compensation, including recording excess tax benefits and tax deficiencies related to share based payment awards in income tax expense in the reporting period in which they occurred. Tax benefits and deficiencies for the years ended December 31, 2018 and 2017 were a deficiency of $33,000 and a benefit of $126,000, respectively. Tax benefits and tax deficiencies before this update were recorded in additional paid in capital. For the year ended December 31, 2016, the Company recorded a tax deficiency of $16,000. In October 2016, the Internal Revenue Service entered into a unilateral agreement with the Large Taxpayer Division of Mexico's Servicio de Administracion Tributaria (SAT) to provide for a Fast Track methodology to resolve all pending Advanced Pricing Agreements (APA) for the Maquiladora industry. The Company's Mexican subsidiary filed an APA and qualifies for and has adopted this methodology. The Company performs an analysis to evaluate the balance of deferred tax assets that will be realized. The analysis is based on the premise that the deferred tax benefits will be realized through the generation of future taxable income. Based on the analysis, the Company has not recorded a valuation allowance on the deferred tax assets as of December 31, 2018 and 2017. Deferred tax assets consist of the following at December 31:
| 2018 |  | 2017
Current asset (liability): |  |  |
Net operating loss carryforwards | $ | 456,000 |  |  | $ | — |
Interest limitation carryforwards | 394,000 |  |  | — |
Accrued liabilities | 568,000 |  |  | 608,000 |
Accounts receivable | 521,000 |  |  | 156,000 |
Inventory | 525,000 |  |  | 371,000 |
Other, net | (446,000 | ) |  | (292,000 | )
Total current asset | 2,018,000 |  |  | 843,000 |
Non-current asset (liability): |  |  |
Property, plant, and equipment | (3,941,000 | ) |  | (3,345,000 | )
Post retirement benefits | 1,848,000 |  |  | 2,060,000 |
Goodwill and finite-lived assets, net | 994,000 |  |  | (78,000 | )
Other, net | 234,000 |  |  | 125,000 |
Total non-current liability | (865,000 | ) |  | (1,238,000 | )
Total deferred tax asset (liability) - net | $ | 1,153,000 |  |  | $ | (395,000 | )
At December 31, 2018. the Company had estimated net operating loss carryforwards and interest limitation carryforwards in the U.S. federal jurisdiction of $2,072,000 and $1,792,000, respectively. Both carryforwards do not expire. At December 31, 2018 and 2017 the Company had no liability for unrecognized tax benefits under guidance relating to tax uncertainties. The Company does not anticipate that the unrecognized tax benefits will significantly change within the next twelve months. The Company files income tax returns in the U.S. federal jurisdiction, Mexico, Canada and various state and local jurisdictions. The Company is not subject to U.S. federal and state income tax examinations by tax authorities for the years before 2015, not subject to Mexican income tax examinations by Mexican authorities for the years before 2013 and not subject to Canadian income tax examinations by Canadian authorities for the years before 2018.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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