XML 27 R13.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | (3) Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rate, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. A company may select between one of three scenarios to determine a reasonable estimate arising from the Tax Reform Act. Those scenarios are (i) a final estimate which effectively closes the measurement window; (ii) a reasonable estimate leaving the measurement window open for future revisions; and (iii) no estimate as the law is still being analyzed. The Company was able to provide a reasonable estimate for the revaluation of deferred taxes and the effects of the repatriation undistributed foreign subsidiary earnings and profits. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Reform Act, the Company revalued its net deferred tax liabilities at December 31, 2017, resulting in a $4,683 benefit included in the provision for income taxes for the year ended December 31, 2017. The Tax Reform Act also provided for a one-time deemed mandatory repatriation of Post-1986 E&P through the year ended December 31, 2017. As a result, the Company recognized a provisional $1,250 charge in the provision for income taxes for the year ended December 31, 2017 related to the deemed mandatory repatriation. The Company continues to evaluate the various provisions of Tax Reform Act, including, the global intangible low-taxed income (“GILTI”) and the foreign derived intangible income (“FDII”) provisions. The ultimate impact of the Tax Reform Act may differ from these amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and any related actions the Company may take. The measurement period begins in the reporting period that includes the enactment date and ends when an entity has obtained, prepared, and analyzed the information that was needed in order to complete the accounting requirements under ASC Topic 740. The provisions for income taxes are:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,124 |  |  | $ | 5,136 |  |  | $ | 573 |
State |  |  | 1,347 |  |  |  | (122 | ) |  |  | 417 |
Foreign |  |  | 570 |  |  |  | 655 |  |  |  | 991 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 160 |  |  |  | (1,345 | ) |  |  | (319 | )
State |  |  | 242 |  |  |  | 1,216 |  |  |  | 347 |
|  | $ | 4,443 |  |  | $ | 5,540 |  |  | $ | 2,009 |
Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 35.0% to income before income tax expense as a result of the following:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Computed tax expense at statutory federal rates |  | $ | 8,651 |  |  | $ | 6,415 |  |  | $ | 3,010 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal income tax benefit |  |  | 988 |  |  |  | 820 |  |  |  | 639 |
Domestic production deduction |  |  | (150 | ) |  |  | (1,272 | ) |  |  | (179 | )
Impact of the enactment of the Tax Cuts and Jobs Act (net) |  |  | (3,433 | ) |  |  | — |  |  |  | — |
Income tax credits |  |  | (431 | ) |  |  | (335 | ) |  |  | (662 | )
Foreign tax rate differential |  |  | (1,503 | ) |  |  | (1,587 | ) |  |  | (1,590 | )
Subpart F income |  |  | 3 |  |  |  | 14 |  |  |  | 9 |
Loss on equity investment |  |  | 62 |  |  |  | 123 |  |  |  | 223 |
Stock based compensation |  |  | 262 |  |  |  | 208 |  |  |  | 244 |
Tax interest |  |  | (22 | ) |  |  | 920 |  |  |  | — |
Other |  |  | 16 |  |  |  | 234 |  |  |  | 315 |
|  | $ | 4,443 |  |  | $ | 5,540 |  |  | $ | 2,009 |
Income before provision for income taxes and losses on equity investment are:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Domestic |  | $ | 18,931 |  |  | $ | 12,513 |  |  | $ | 1,589 |
Foreign |  |  | 5,922 |  |  |  | 6,404 |  |  |  | 7,373 |
|  | $ | 24,853 |  |  | $ | 18,917 |  |  | $ | 8,962 |
Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2017 and 2016 relate to the following:
|  | 2017 |  |  | 2016 |
Deferred tax asset |  |  |  |  |  |  |  |
Inventories |  | $ | 3,213 |  |  | $ | 5,359 |
State income taxes |  |  | 330 |  |  |  | 213 |
Program accrual |  |  | 7,381 |  |  |  | 12,318 |
Vacation pay accrual |  |  | 600 |  |  |  | 818 |
Accrued bonuses |  |  | 1,073 |  |  |  | 2,072 |
Bad debt expense |  |  | 12 |  |  |  | 6 |
Stock compensation |  |  | 822 |  |  |  | 1,614 |
NOL carryforward |  |  | 54 |  |  |  | 351 |
Tax credit |  |  | 778 |  |  |  | 14 |
Other |  |  | 381 |  |  |  | 2,707 |
Deferred tax asset |  | $ | 14,644 |  |  | $ | 25,472 |
Deferred tax liability |  |  |  |  |  |  |  |
Plant and equipment, principally due to differences in depreciation and capitalized interest |  | $ | 29,986 |  |  | $ | 30,636 |
Prepaid expenses |  |  | 942 |  |  |  | 1,542 |
Deferred tax liability |  |  | 30,928 |  |  |  | 32,178 |
Total net deferred tax liability |  | $ | 16,284 |  |  | $ | 6,706 |
The following is a roll-forward of the Company’s total gross unrecognized tax liabilities, not including interest and penalties, for the years ended December 31, 2017 and 2016:
|  | 2017 |  |  | 2016 |
Balance at beginning of year |  | $ | 1,893 |  |  | $ | 2,007 |
Additions for tax positions related to the current year |  |  | 77 |  |  |  | 65 |
Additions for tax positions related to the prior year |  |  | — |  |  |  | 86 |
Additions for tax positions related to new acquired businesses |  |  | 1,766 |  |  |  | — |
Reduction for tax positions related to the prior year |  |  | (1,618 | ) |  |  | (265 | )
Balance at end of year |  | $ | 2,118 |  |  | $ | 1,893 |
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. For the years ended December 31, 2017, 2016, and 2015 the Company had recognized approximately $2,257, $408, and $335 respectively in interest and penalties related to unrecognized tax benefits accrued. It is expected that the amount of unrecognized tax benefits will change within the next 12 months; however we do not expect the change to have a significant impact on our consolidated financial statements. At this time, an estimate of the range of the reasonable possible outcomes cannot be made. The Company believes it is more likely than not that the deferred tax assets detailed in the table above will be realized in the normal course of business. It is the intent of the Company that undistributed earnings of foreign subsidiaries are permanently reinvested and, accordingly, no deferred liability for federal and state income taxes has been recorded. The amount of undistributed earnings was $35,084 as of December 31, 2017. Upon distribution of earnings in the form of dividends or otherwise, the Company may still be subject to state income taxes and withholding taxes payable to the various foreign countries. Determination of the unrecognized deferred tax liability is not practical due to the complexities of a hypothetical calculation. The Company has effectively settled its examination with the Internal Revenue Service (“IRS”) for the tax years ended December 31, 2012 through 2014. The Company’s 2015 and 2016 federal income tax returns are still subject to IRS examination. The Company has other state and foreign income tax returns that are subject to examination.

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/presentationRef -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