Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes
The provision (benefit) for income taxes at December 31 consists of the following:
(In thousands) 2020 2019 2018
Current
U.S. Federal $ (8,679) $ 23,798  $ 7,540 
State (4,539) 4,471  (504)
Foreign 1,036  2,402  1,123 
Current (12,182) 30,671  8,159 
Deferred
U.S. Federal 17,044  (16,250) (1,799)
State (92) 727  (1,584)
Foreign (1,399) 1,138  703 
Deferred 15,553  (14,385) (2,680)
Total $ 3,371  $ 16,286  $ 5,479 
Effective Tax Rates Differ from Statutory Federal Income Tax Rate
The effective tax rates differ from the statutory federal income tax rate as follows:
2020 2019 2018
Statutory Federal Income Tax Rate 21.0  % 21.0  % 21.0  %
Permanent Items
Stock Compensation Expense (0.3) % (0.5) % (0.9) %
Non Deductible Goodwill Impairment (10.2) % —  % —  %
Other —  % 0.5  % 0.4  %
Foreign Tax Rate Differential (1.0) % 1.4  % 0.5  %
State Income Tax, Net of Federal Income Tax Effect 3.3  % 6.0  % 2.8  %
Revised State Filing Tax Benefit, Net of Federal Income Tax Effect, Net of Reserve —  % —  % (6.7) %
Research and Development Tax Credits 2.2  % (4.6) % (6.2) %
Change in Valuation Allowance (19.2) % 1.1  % —  %
Net GILTI and FDII Tax (Benefit) Expense —  % (1.2) % 0.2  %
Tax Expense (Benefit) on Deemed Repatriation of Foreign Earnings —  % —  % (0.8) %
Revaluation of Deferred Taxes for Federal Tax Rate Change —  % —  % (0.1) %
Tax Rate Change on 2020 Federal Net Operating Loss (“NOL”) 1.3  % —  % —  %
Other (0.1) % 0.1  % 0.3  %
Effective Tax Rate (3.0) % 23.8  % 10.5  %
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) 2020 2019
Deferred Tax Assets:
Asset Reserves $ 18,189  $ 17,071 
Deferred Compensation 7,564  6,427 
State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax 866  854 
Customer Advanced Payments and Deferred Revenue 2,216  3,472 
Net Operating Loss Carryforwards and Other 11,244  8,212 
Goodwill and Intangible Assets 2,069  — 
ASC 606 Revenue Recognition 2,311  2,612 
Lease Liabilities 5,545  7,466 
Other 2,300  3,170 
Total Gross Deferred Tax Assets 52,304  49,284 
Valuation Allowance for Foreign Tax Credit, State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax (37,168) (13,303)
Deferred Tax Assets 15,136  35,981 
Deferred Tax Liabilities:
Depreciation 10,166  10,060 
Goodwill and Intangible Assets —  4,683 
ASC 606 Revenue Recognition - Section 481(a) Adjustment 928  496 
Lease Assets 4,506  6,377 
Other 1,186  751 
Deferred Tax Liabilities 16,786  22,367 
Net Deferred Tax (Liabilities) Assets $ (1,650) $ 13,614 
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) 2020 2019
Other Assets — Long-term $ 1,259  $ 17,536 
Deferred Tax Liabilities — Long-term (2,909) (3,922)
Net Deferred Tax (Liabilities) Assets $ (1,650) $ 13,614 
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:
(in thousands) 2020 2019 2018
Balance at Beginning of the Year $ 2,565  $ 2,197  $ — 
Decreases as a Result of Tax Positions Taken in Prior Years (775) —  — 
Increases as a Result of Tax Positions Taken in the Current Year 100  368  2,197 
Balance at End of the Year $ 1,890  $ 2,565  $ 2,197