Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes
The provision (benefit) for income taxes at December 31 consists of the following:
(In thousands) 2019 2018 2017
Current
U.S. Federal $ 23,798    $ 7,540    $ 8,436   
State 4,471    (504)   2,054   
Foreign 2,402    1,123    316   
Current 30,671    8,159    10,806   
Deferred
U.S. Federal (16,250)   (1,799)   (3,850)  
State 727    (1,584)   (326)  
Foreign 1,138    703    (1,318)  
Deferred (14,385)   (2,680)   (5,494)  
Total $ 16,286    $ 5,479    $ 5,312   
Effective Tax Rates Differ from Statutory Federal Income Tax Rate
The effective tax rates differ from the statutory federal income tax rate as follows:
2019 2018 2017
Statutory Federal Income Tax Rate 21.0  % 21.0  % 35.0  %
Permanent Items
Stock Compensation Expense (0.5) % (0.9) % 1.1  %
Domestic Production Activity Deduction —  % —  % (4.7) %
Other 0.5  % 0.4  % 0.5  %
Foreign Tax Rate Differential 1.4  % 0.5  % (5.6) %
State Income Tax, Net of Federal Income Tax Effect 6.0  % 2.8  % 4.5  %
Revised State Filing Tax Benefit, Net of Federal Income Tax Effect, Net of Reserve —  % (6.7) % —  %
Research and Development Tax Credits (4.6) % (6.2) % (11.5) %
Change in Valuation Allowance 1.1  % —  % —  %
Net GILTI and FDII Tax Expense (Benefit) (1.2) % 0.2  % —  %
Tax Expense (Benefit) on Deemed Repatriation of Foreign Earnings —  % (0.8) % 5.6  %
Revaluation of Deferred Taxes for Federal Tax Rate Change —  % (0.1) % (3.5) %
Other 0.1  % 0.3  % (0.1) %
Effective Tax Rate 23.8  % 10.5  % 21.3  %
Significant Components of Company's Deferred Tax Assets and Liabilities
Significant components of the Company’s deferred tax assets and liabilities at December 31, are as follows:
(In thousands) 2019 2018
Deferred Tax Assets:
Asset Reserves $ 17,071    $ 8,808   
Deferred Compensation 6,427    5,628   
State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax 854    1,066   
Customer Advanced Payments and Deferred Revenue 3,472    875   
Net Operating Loss Carryforwards and Other 8,212    7,407   
ASC 606 Revenue Recognition 2,612    1,641   
Lease Liabilities 7,466    1,743   
Other 3,170    —   
Total Gross Deferred Tax Assets 49,284    27,168   
Valuation Allowance for Foreign Tax Credit, State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax (13,303)   (8,098)  
Deferred Tax Assets 35,981    19,070   
Deferred Tax Liabilities:
Depreciation 10,060    10,783   
Goodwill and Intangible Assets 4,683    4,438   
ASC 606 Revenue Recognition - Section 481(a) Adjustment 496    767   
Lease Assets 6,377    904   
Other 751    3,812   
Deferred Tax Liabilities 22,367    20,704   
Net Deferred Tax Assets (Liabilities) $ 13,614    $ (1,634)  
Components of Net Deferred Tax Assets and Liabilities The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:
(In thousands) 2019 2018
Other Assets — Long-term $ 17,536    $ 3,999   
Assets Held for Sale —    (1,528)  
Deferred Tax Liabilities — Long-term (3,922)   (3,199)  
Liabilities Held for Sale —    (906)  
Net Deferred Tax Assets (Liabilities) $ 13,614    $ (1,634)  
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties
(in thousands) 2019 2018 2017
Balance at Beginning of the Year $ 2,197    $ —    $ —   
Decreases as a Result of Tax Positions Taken in Prior Years —    —    —   
Increases as a Result of Tax Positions Taken in the Current Year 368    2,197    —   
Balance at End of the Year 2,565    $ 2,197    $ —