Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
Provision for Income Tax Expense |
Our provision for income tax expense is comprised of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31,
|
|
(in thousands)
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
1,148 |
|
|
$ |
887 |
|
|
$ |
536 |
|
State
|
|
|
14 |
|
|
|
157 |
|
|
|
(68 |
) |
International
|
|
|
57 |
|
|
|
175 |
|
|
|
223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,219 |
|
|
|
1,219 |
|
|
|
691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
— |
|
|
|
— |
|
|
|
22,418 |
|
State
|
|
|
— |
|
|
|
— |
|
|
|
1,538 |
|
International
|
|
|
— |
|
|
|
— |
|
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
24,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax expense
|
|
$ |
1,219 |
|
|
$ |
1,219 |
|
|
$ |
24,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Components of Income Taxes |
The components of our income taxes consisted of the following:
|
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|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
Income tax expense from continuing operations
|
|
$ |
1,219 |
|
|
$ |
1,369 |
|
|
$ |
25,974 |
|
Income tax (benefit) expense from discontinued operations
|
|
|
— |
|
|
|
(150 |
) |
|
|
209 |
|
Income tax benefit from loss on disposal of discontinued
operations
|
|
|
— |
|
|
|
— |
|
|
|
(1,463 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax expense
|
|
$ |
1,219 |
|
|
$ |
1,219 |
|
|
|
24,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variations from Federal Statutory Rate |
Variations from the federal statutory rate are as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
Expected federal income tax expense (benefit) at statutory rate of
34%
|
|
$ |
785 |
|
|
$ |
(2,631 |
) |
|
$ |
898 |
|
Effect of 2008 State NOL’s and option forfeitures
|
|
|
— |
|
|
|
— |
|
|
|
49 |
|
Effect of permanent other differences
|
|
|
103 |
|
|
|
37 |
|
|
|
213 |
|
Effect of repatriation and nondeductible foreign losses
|
|
|
422 |
|
|
|
— |
|
|
|
— |
|
State income tax (benefit) expense, net of federal benefit
|
|
|
— |
|
|
|
(150 |
) |
|
|
24 |
|
Establishment of valuation allowance on net deferred tax assets
|
|
|
(103 |
) |
|
|
4,071 |
|
|
|
23,153 |
|
Other
|
|
|
14 |
|
|
|
(70 |
) |
|
|
278 |
|
Effect of differences between U.S. taxation and foreign
taxation
|
|
|
(2 |
) |
|
|
(38 |
) |
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax expense
|
|
$ |
1,219 |
|
|
$ |
1,219 |
|
|
|
24,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net Accumulated Deferred Income Tax Assets |
and the amounts used for income tax purposes. The components of the
net accumulated deferred income tax assets as of December 31,
2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(in thousands)
|
|
2015 |
|
|
2014 |
|
Deferred tax assets (liabilities):
|
|
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
|
|
|
Provision for doubtful accounts
|
|
$ |
318 |
|
|
$ |
1,211 |
|
Inventory-related expense
|
|
|
573 |
|
|
|
483 |
|
Accrued liabilities
|
|
|
714 |
|
|
|
1,420 |
|
Nonqualified stock options
|
|
|
1,723 |
|
|
|
1,221 |
|
Worthless stock deduction
|
|
|
207 |
|
|
|
206 |
|
Other
|
|
|
597 |
|
|
|
263 |
|
Exit activity accruals
|
|
|
803 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Total current deferred tax assets
|
|
|
4,935 |
|
|
|
4,804 |
|
Valuation allowance
|
|
|
(4,935 |
) |
|
|
(4,804 |
) |
|
|
|
|
|
|
|
|
|
Total current deferred tax assets, net of valuation allowance
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$ |
(1,896 |
) |
|
$ |
(1,506 |
) |
Section 181 qualified production expense
|
|
|
(3,563 |
) |
|
|
(2,770 |
) |
Net operating loss carryforward
|
|
|
30,727 |
|
|
|
26,966 |
|
Charitable carryforward
|
|
|
1,899 |
|
|
|
1,414 |
|
Loss from change in financial statement carrying value of
investment, net
|
|
|
48 |
|
|
|
48 |
|
Gain from foreign business acquisition
|
|
|
(103 |
) |
|
|
(347 |
) |
Impairment of intangibles
|
|
|
367 |
|
|
|
367 |
|
Spin-off and capitalized legal costs
|
|
|
587 |
|
|
|
— |
|
Tax credits
|
|
|
922 |
|
|
|
921 |
|
Other
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
Total non-current deferred tax assets
|
|
|
28,985 |
|
|
|
25,090 |
|
Valuation allowance
|
|
|
(28,985 |
) |
|
|
(25,090 |
) |
|
|
|
|
|
|
|
|
|
Total non-current deferred tax assets, net of valuation
allowance
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Total net deferred tax assets
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Sources of Income (Loss) Before Income Taxes |
$16.6 million for federal and state, respectively. The sources of
income (loss) before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
Domestic
|
|
$ |
2,109 |
|
|
$ |
(4,947 |
) |
|
$ |
5,503 |
|
International
|
|
|
201 |
|
|
|
686 |
|
|
|
373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,310 |
|
|
$ |
(4,261 |
) |
|
$ |
5,876 |
|
|
|
|
|
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|