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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Components of the provision for income taxes are as follows:
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal - US | $ | — |  |  | $ | 11,000 |  |  | $ | 1,993,000 |
Foreign | 685,000 |  |  | 1,023,000 |  |  | 613,000 |
State and local | 20,000 |  |  | 14,000 |  |  | 24,000 |
| 705,000 |  |  | 1,048,000 |  |  | 2,630,000 |
Deferred: |  |  |  |  |
Federal | 738,000 |  |  | (1,355,000 | ) |  | (407,000 | )
Foreign | (1,824,000 | ) |  | (289,000 | ) |  | 52,000 |
State and local | 26,000 |  |  | (68,000 | ) |  | 11,000 |
| (1,060,000 | ) |  | (1,712,000 | ) |  | (344,000 | )
Provision (benefit) for income taxes | $ | (355,000 | ) |  | $ | (664,000 | ) |  | $ | 2,286,000 |
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:
| 2019 |  | 2018 |  | 2017
Provision at US federal statutory rate | $ | (3,274,000 | ) |  | $ | (1,145,000 | ) |  | $ | 2,634,000 |
Adjustments for US tax law changes | — |  |  | — |  |  | (185,000 | )
Valuation allowance | 3,267,000 |  |  | — |  |  | — |
Effect of foreign taxes | (209,000 | ) |  | 213,000 |  |  | (58,000 | )
Adoption of ASC 606 | — |  |  | 236,000 |  |  | — |
State and local tax expense | (102,000 | ) |  | (54,000 | ) |  | 35,000 |
Other | (37,000 | ) |  | 86,000 |  |  | (140,000 | )
Provision (benefit) for income taxes | $ | (355,000 | ) |  | $ | (664,000 | ) |  | 2,286,000 |
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%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, created new taxes on certain foreign sourced earnings, provided for acceleration of business asset expensing, and reduced 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. 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 records 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, 2019, 2018 and 2017 were a deficiency of $110,000 and $33,000 and a benefit of $126,000, respectively. The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. Management makes assumptions, judgments, and estimates to determine our current and deferred tax provision and also the deferred tax assets and liabilities. The Company evaluates provisions and deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available evidence. As of December 31, 2019 the Company had a deferred tax asset of $5,293,000 of which $3,267,000 is related to tax positions in the United States, $1,555,000 related to tax positions in Canada and $471,000 related to tax positions in Mexico. During 2019, the Company recorded a valuation allowance against all deferred tax assets in the United States, due to cumulative losses over the last three years and uncertainty related to the Company’s ability to realize net loss carryforwards and other net deferred tax assets in the future. The Company believes that the deferred tax assets associated with the Canadian and Mexican tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income and the Company's ability to carryback losses. Deferred tax assets consist of the following at December 31:
| 2019 |  | 2018
Current asset (liability): |  |  |
Net operating loss carryforwards | $ | 4,928,000 |  |  | $ | 456,000 |
Interest limitation carryforwards | 686,000 |  |  | 394,000 |
Accrued liabilities | 477,000 |  |  | 568,000 |
Accounts receivable | 108,000 |  |  | 521,000 |
Inventory | 587,000 |  |  | 525,000 |
Other, net | (190,000 | ) |  | (446,000 | )
Total current asset | 6,596,000 |  |  | 2,018,000 |
Non-current asset (liability): |  |  |
Property, plant, and equipment | (5,580,000 | ) |  | (3,941,000 | )
Post retirement benefits | 2,090,000 |  |  | 1,848,000 |
Goodwill and finite-lived assets, net | 1,973,000 |  |  | 994,000 |
Other, net | 214,000 |  |  | 234,000 |
Total non-current liability | (1,303,000 | ) |  | (865,000 | )
Valuation allowance for deferred tax assets | (3,267,000 | ) |  | $ | — |
Total deferred tax asset (liability), net | $ | 2,026,000 |  |  | $ | 1,153,000 |
At December 31, 2019, the Company had estimated net operating loss carryforwards and interest limitation carryforwards in the U.S. federal jurisdiction of $17,994,000 and $3,120,000, respectively. Both carryforwards do not expire. At December 31, 2019, the Company had estimated net operating loss carryforwards in Canada of $5,772,000, of which $2,116,000 can be carried back to prior years. The remaining $3,656,000 expire in the year 2039. At December 31, 2019 and 2018 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 2016, not subject to Mexican income tax examinations by Mexican authorities for the years before 2014 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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