Astronics Corporation Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The provision (benefit) for income taxes consists of the following:

The effective tax rates differ from the statutory federal income tax rate as follows:



	2017		2016		2015
Statutory Federal Income Tax Rate	35.0	%	35.0	%	35.0	%
Permanent Items
Non-deductible Stock Compensation Expense	1.1	%	1.1	%	0.6	%
Domestic Production Activity Deduction	(4.7	)%	(3.3	)%	(2.9	)%
Other	0.5	%	0.2	%	0.2	%
Foreign Tax Benefits	(5.6	)%	(1.1	)%	(1.1	)%
State Income Tax, Net of Federal Income Tax Effect	4.5	%	1.8	%	0.9	%
Research and Development Tax Credits	(11.5	)%	(3.7	)%	(2.7	)%
Tax Expense on Deemed Repatriation of Foreign Earnings	5.6	%	—	%	—	%
Revaluation of Deferred Taxes for Federal Tax Rate Change	(3.5	)%	—	%	—	%
Other	(0.1	)%	(0.4	)%	(1.2	)%
Effective Tax Rate	21.3	%	29.6	%	28.8	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of asset

The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:



(In thousands)	2017			2016
Other Assets — Long-term	$	2,816		$	2,644
Deferred Tax Liabilities — Long-term	(5,121		)	(11,297		)
Net Deferred Tax Liabilities	$	(2,305	)	$	(8,653	)

A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties which are insignificant, is as follows:



(in thousands)	2017		2016		2015
Balance at Beginning of the Year	$	—	$	—	$	181
Decreases as a Result of Tax Positions Taken in Prior Years	—		—		(181		)
Increases as a Result of Tax Positions Taken in the Current Year	—		—		—
Balance at End of the Year	$	—	$	—	$	—