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]  
Components of Provision for Income Taxes The components of the provision for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):
  2020 2019 2018
Current
Federal $ 4,086  $ 7,739  $ 9,667 
State 1,262  1,344  1,758 
Foreign 144  825  140 
  5,492  9,908  11,565 
Deferred      
Federal (78) (66) (1,114)
State 163  (490) (347)
Foreign 21  51  64 
  106  (505) (1,397)
Provision for income taxes $ 5,598  $ 9,403  $ 10,168 
Effective Income Tax Reconciliation
The differences between the amount of tax computed at the federal statutory rate of 21% in 2020, 2019 and 2018, and the provision for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):
  2020 2019 2018
Tax at statutory federal income tax rate $ 89  $ 9,749  $ 9,502 
Increases (decreases) in tax resulting from:      
State taxes, net of federal tax benefit (52) 1,805  1,861 
Permanent differences, net (1,406) (195) 367 
Impact of Tax Act —  —  (795)
Tax credits (195) (612) (375)
Prior year true-up adjustment 397  (1,274) (113)
Valuation allowance 6,716  (137) 107 
Other provision adjustments 49  67  (386)
Provision for income taxes $ 5,598  $ 9,403  $ 10,168 
Certain amounts from the prior years have been reclassified to conform to the current year presentation.
Deferred Tax Assets and Liabilities
The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (in thousands):
  2020 2019
Gross deferred tax assets
Deferred compensation and accrued paid leave $ 6,302  $ 7,498 
Operating lease liabilities 6,984  7,009 
Stock-based compensation 605  678 
Interest rate swaps 400  367 
Reserve for contract disallowance 195  145 
Capitalized inventory 573  — 
US operating and capital loss carryforward 5,989  24 
Tax credit carryforward 1,412  1,547 
Foreign country operating loss carryforward 583  — 
23,043  17,268 
Valuation allowance (a) (7,926) (1,165)
  Total gross deferred tax assets 15,117  16,103 
Gross deferred tax liabilities
Depreciation (3,061) (2,498)
Deferred revenues (1,816) (1,681)
Goodwill and intangible assets (19,470) (23,383)
Operating lease right-of-use assets (5,384) (5,323)
Capitalized inventory —  (240)
Other (283) (823)
Total gross deferred tax liabilities (30,014) (33,948)
Net deferred tax liabilities $ (14,897) $ (17,845)
(a) A valuation allowance was provided against US capital loss in connection with the stock sale of Prime Turbines, certain state tax credit and foreign tax loss deferred tax assets arising from carryforwards of unused tax benefits.
(b) Certain amounts from prior year have been reclassified to conform with current year presentation.