Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
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, 2018, 2017 and 2016 are as follows (in thousands):
 
2018
 
2017
 
2016
Current
 
 
 
 
 
Federal
$
9,667

 
$
14,149

 
$
13,648

State
1,758

 
2,511

 
2,379

Foreign
140

 
—

 
—

 
11,565

 
16,660

 
16,027

Deferred
 

 
 

 
 

Federal
(1,114
)
 
(10,645
)
 
(983
)
State
(347
)
 
110

 
(163
)
Foreign
64

 
(136
)
 
—

 
(1,397
)
 
(10,671
)
 
(1,146
)
Provision for income taxes
$
10,168

 
$
5,989

 
$
14,881

Effective Income Tax Reconciliation
The differences between the amount of tax computed at the federal statutory rate of 21% in 2018 and 35% in 2017 and 2016, and the provision for income taxes from continuing operations for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands):
 
2018
 
2017
 
2016
Tax at statutory federal income tax rate
$
9,502

 
$
15,780

 
$
14,586

Increases (decreases) in tax resulting from:
 

 
 

 
 

State taxes, net of federal tax benefit
1,861

 
1,732

 
1,599

Permanent differences, net
367

 
(275
)
 
(545
)
Impact of Tax Act
(795
)
 
(10,556
)
 
—

Other provision adjustments
(767
)
 
(692
)
 
(759
)
Provision for income taxes
$
10,168

 
$
5,989

 
$
14,881


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, 2018 and 2017 are as follows (in thousands):
 
2018
 
2017
Gross deferred tax assets
 
 
 
Deferred compensation and accrued paid leave
$
5,794

 
$
5,594

Accrued expenses
1,310

 
1,013

Stock-based compensation
819

 
772

Reserve for contract disallowances
120

 
84

Acquisition-related expenses
151

 
—

Capitalized inventory
742

 
916

State operating loss carryforward
24

 
263

Tax credit carryforward
47

 
178

Foreign country operating loss carryforward
157

 
136

Foreign country valuation allowance
(107
)
 
—

  Total gross deferred tax assets
9,057

 
8,956

 
 
 
 
Gross deferred tax liabilities
 
 
 
Interest rate swaps
(49
)
 
(74
)
Depreciation
(1,739
)
 
(2,439
)
Deferred revenues
(2,164
)
 
(1,875
)
Goodwill and intangible assets
(23,395
)
 
(23,854
)
Prepaid expenses
(120
)
 
—

Total gross deferred tax liabilities
(27,467
)
 
(28,242
)
 
 
 
 
Net deferred tax liabilities
$
(18,410
)
 
$
(19,286
)