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Note 9 - Income Taxes | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 9 - Income Taxes Our income tax provision consists of:
|  | Years Ended December 31, |
|  | 201 6 |  |  | 201 5 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (70 | ) |  | $ | 4 |
State |  |  | 20 |  |  |  | 15 |
Foreign |  |  | 13 |  |  |  | 111 |
|  |  | (37 | ) |  |  | 130 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 220 |  |  |  | 169 |
State |  |  | - |  |  |  | - |
Foreign |  |  | (85 | ) |  |  | 11 |
|  |  | 135 |  |  |  | 180 |
Total income tax provision |  | $ | 98 |  |  | $ | 310 |
The deferred income tax provision is primarily due to the recognition of deferred tax liabilities relating to goodwill and certain intangible assets that cannot be predicted to reverse for book purposes during our loss carry-forward periods offset by the deferred tax benefit of the amortization of certain intangible assets of Accutronics (U.K.). The current income tax provision is primarily due to the income reported for Accutronics (U.K.) while the remaining expense is primarily due to state taxes. The benefit associated with the current income tax provision is primarily related to an excess accrual of income taxes in prior years. In 2015, the deferred provision was reduced by a deferred tax benefit amounting to $51 relating to our $150 impairment of a trademark. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Significant components of our deferred tax liabilities and assets are as follows:
|  | Years Ended December 31, |
|  | 201 6 |  |  | 201 5 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Property, Plant and Equipment |  | $ | - |  |  | $ | - |
Intangible Assets |  |  | 5,471 |  |  |  | 4,631 |
Total Deferred Tax Liabilities |  |  | 5,471 |  |  |  | 4,631 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Property, Plant and Equipment |  |  | 77 |  |  |  | 288 |
Net Operating Loss Carry-Forwards |  |  | 27,127 |  |  |  | 27,283 |
Tax Credit Carry-Forwards |  |  | 1,704 |  |  |  | 1,596 |
Intangible Assets |  |  | 2,923 |  |  |  | 3,391 |
Accrued Expenses, Reserves and Other |  |  | 1,527 |  |  |  | 2,127 |
Total Deferred Tax Assets |  |  | 33,358 |  |  |  | 34,685 |
Valuation Allowance for Deferred Tax Assets |  |  | (33,331 | ) |  |  | (34,593 | )
Net Deferred Tax Assets |  |  | 27 |  |  |  | 92 |
Net Deferred Tax Liabilities |  | $ | 5,444 |  |  | $ | 4,539 |
Net deferred tax liabilities are comprised of the following balance sheet amounts:
|  | Years Ended December 31, |
|  | 201 6 |  |  | 201 5 |
Current Deferred Tax Assets |  | $ | 94 |  |  | $ | 92 |
Non-Current Deferred Tax Liabilities |  |  | (5,538 | ) |  |  | (4,631 | )
|  | $ | (5,444 | ) |  | $ | (4,539 | )
The valuation allowance for deferred tax assets decreased by $1,262 and increased by $6,642 in the years ended December 31, 2016 and 2015, respectively. The 2016 decrease in the valuation allowance was due to the reduction of deferred tax assets due to the Company’s pretax income in 2016. The 2015 increase in the valuation allowance included an increase of $7,296 relating to the release of our unrecognized tax benefit during 2015 (see below). Excluding the effect of the release of the unrecognized tax benefit during 2015, the valuation allowance would have decreased by $654. In 2016 and 2015, in the U.S. and certain operations in the U.K., we continue to report a valuation allowance for our deferred tax assets that cannot be offset by reversing temporary differences. We continue to conclude that, based on historical factors, it is more likely than not that we will not fully utilize our U.S. and U.K. NOLs that have accumulated over time. The recognition of a valuation allowance on our deferred tax assets results from our evaluation of all available evidence, both positive and negative. The assessment of the realizability of the NOLs is based on a number of factors including, our history of net operating losses, the volatility of our earnings, our historical operating volatility, our historical inability to accurately forecast earnings for future periods and the continued uncertainty of the general business climate as of the end of 2016. We believe that these historical factors represent negative evidence sufficient to conclude that we should record a full valuation allowance against our deferred tax assets. In both 2016 and 2015, we have not recorded a valuation allowance against our other foreign deferred tax assets as we believe that it is more likely than not that they will be realized. We continually assess the carrying value of this asset based on relevant accounting standards. As of December 31, 2016, we have domestic and foreign NOLs totaling approximately $70,976 and $12,760, respectively, and domestic tax credits of approximately $1,704, available to reduce future taxable income. Included in our NOL carry-forward are foreign loss carry-forwards of approximately $12,760, nearly all of which can be carried forward indefinitely. The domestic NOL carry-forward of $70,976 expires beginning in 2019, through 2034. The domestic NOL carry-forward includes approximately $3,223 for which a benefit will be recorded in capital in excess of par value when realized. At December 31, 2016, the undistributed earnings of the Company's foreign operations were indefinitely reinvested in those operations. For financial reporting purposes, income (loss) from continuing operations before income taxes is as follows:
|  | Years Ended December 31, |
|  | 201 6 |  |  | 201 5 |
United States |  | $ | 2,803 |  |  | $ | 2,582 |
Foreign |  |  | 777 |  |  |  | 568 |
|  | $ | 3,580 |  |  | $ | 3,150 |
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income (loss) from continuing operations before income taxes as follows:
|  | Years Ended December 31, |
|  | 201 6 |  |  | 201 5 |
Statutory Income Tax Rate |  |  | 34.0 | % |  |  | 34.0 | %
(Increase) Decrease in Tax Provision Resulting From: |  |  |  |  |  |  |  |
Equity Compensation |  |  | 9.6 |  |  |  | 2.2 |
Income Tax Credits |  |  | (6.2 | ) |  |  | (4.5 | )
Foreign Tax Rates |  |  | (2.2 | ) |  |  | (2.2 | )
Release of Unrecognized Tax Benefits |  |  | - |  |  |  | (231.6 | )
Valuation Allowance |  |  | (30 | ) |  |  | 210.9 |
Excess Accrual |  |  | (5.2 | ) |  |  | - |
Other |  |  | 2.7 |  |  |  | 1.0 |
Effective Income Tax Rate |  |  | 2.7 | % |  |  | 9.8 | %
Accounting for Uncertainty in Income Taxes Our unrecognized tax benefits related to uncertain tax positions at December 31, 2014 related to Federal and various state jurisdictions. We recorded the release of uncertain tax positions in 2015 relating to the conclusion of a federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carry-forward. The following table summarizes the activity related to our unrecognized tax benefits:
|  | Years Ended December 31, |
|  | 201 6 |  |  | 201 5 |
Balance – beginning of year |  | $ | - |  |  | $ | 7,296 |
Increases related to current year tax positions |  |  | - |  |  |  | - |
Increases related to prior year tax positions |  |  | - |  |  |  | - |
Decreases related to prior year tax positions |  |  | - |  |  |  | - |
Expiration of statute of limitations for assessment of taxes |  |  | - |  |  |  | - |
Settlements of examinations |  |  | - |  |  |  | (7,296 | )
Balance – end of year |  | $ | - |  |  | $ | - |
The total unrecognized tax benefit balances at January 1, 2015 of $7,296 was comprised of tax benefits that, if recognized, would result in a deferred tax asset and a corresponding increase in our valuation allowance. As a result, because the benefit would be offset by an increase in the valuation allowance, there would be no net effect on our effective tax rate or income tax provision. We recorded the release of this unrecognized tax benefit amount during 2015 upon the conclusion of a of a federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carry-forward. There were no unrecognized tax benefits at December 31, 2016. We are not required to accrue interest and penalties as the unrecognized tax benefits have been recorded as a decrease in our NOL. Interest and penalties would begin to accrue in the period in which the NOLs related to the uncertain tax positions are utilized. We do not expect our unrecognized tax benefits to change significantly over the next twelve months. As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for the years 2001 through 2016 remain subject to examination by the Internal Revenue Service (“IRS”) due to our NOL carry-forwards. Our U.S. tax matters for the years 2001 through 2016 remain subject to examination by various state and local tax jurisdictions due to our NOL carry-forwards. Our tax matters for the years 2009 through 2016 remain subject to examination by the respective foreign tax jurisdiction authorities.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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