| Components of Provision for Income Taxes |
The components of the provision for income taxes from continuing operations for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2021 |
|
2020 |
|
2019 |
| Current: |
|
|
|
|
|
| Federal |
$ |
3,919 |
|
|
$ |
4,086 |
|
|
$ |
7,739 |
|
| State |
856 |
|
|
1,262 |
|
|
1,344 |
|
| Foreign |
1,066 |
|
|
144 |
|
|
825 |
|
| |
5,841 |
|
|
5,492 |
|
|
9,908 |
|
| Deferred: |
|
|
|
|
|
| Federal |
(3,318) |
|
|
(78) |
|
|
(66) |
|
| State |
(1,038) |
|
|
163 |
|
|
(490) |
|
| Foreign |
— |
|
|
21 |
|
|
51 |
|
| |
(4,356) |
|
|
106 |
|
|
(505) |
|
| Provision for income taxes |
$ |
1,485 |
|
|
$ |
5,598 |
|
|
$ |
9,403 |
|
|
| Effective Income Tax Reconciliation |
The differences between the amount of tax computed at the federal statutory rate of 21% in 2021, 2020 and 2019, and the provision for income taxes from continuing operations for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2021 |
|
2020 |
|
2019 |
| Tax at statutory federal income tax rate |
$ |
1,985 |
|
|
$ |
89 |
|
|
$ |
9,749 |
|
| Increases (decreases) in tax resulting from: |
|
|
|
|
|
| State taxes, net of federal tax benefit |
383 |
|
|
(52) |
|
|
1,805 |
|
| Permanent differences, net |
(839) |
|
|
(1,406) |
|
|
(195) |
|
|
|
|
|
|
|
| Tax credits |
(434) |
|
|
(195) |
|
|
(612) |
|
| Prior year true-up adjustment |
83 |
|
|
397 |
|
|
(1,274) |
|
| Valuation allowance |
331 |
|
|
6,716 |
|
|
(137) |
|
| Other provision adjustments |
(24) |
|
|
49 |
|
|
67 |
|
| Provision for income taxes |
$ |
1,485 |
|
|
$ |
5,598 |
|
|
$ |
9,403 |
|
Certain amounts from 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, 2021 and 2020 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
| |
2021 |
|
2020 |
| Gross deferred tax assets |
|
|
|
| Deferred compensation and accrued paid leave |
$ |
5,422 |
|
|
$ |
6,302 |
|
| Inventory reserve |
12,465 |
|
|
432 |
|
| Operating lease liabilities |
7,805 |
|
|
6,984 |
|
| Stock-based compensation |
775 |
|
|
605 |
|
| Interest rate swaps |
58 |
|
|
400 |
|
| Reserve for contract disallowance |
114 |
|
|
195 |
|
| Capitalized inventory |
900 |
|
|
573 |
|
| US operating and capital loss carryforward |
6,045 |
|
|
5,989 |
|
| Tax credit carryforward |
1,411 |
|
|
1,412 |
|
| Foreign country operating loss carryforward |
892 |
|
|
583 |
|
|
35,887 |
|
|
23,475 |
|
Valuation allowance(a)
|
(8,257) |
|
|
(7,926) |
|
|
|
|
|
|
|
|
|
| Total gross deferred tax assets |
27,630 |
|
|
15,549 |
|
|
|
|
|
| Gross deferred tax liabilities |
|
|
|
|
|
|
|
| Depreciation |
(3,895) |
|
|
(3,061) |
|
| Deferred revenues |
(1,358) |
|
|
(1,816) |
|
| Goodwill and intangible assets |
(24,836) |
|
|
(19,470) |
|
| Operating lease right-of-use assets |
(6,375) |
|
|
(5,384) |
|
| Other |
(274) |
|
|
(715) |
|
| Total gross deferred tax liabilities |
(36,738) |
|
|
(30,446) |
|
|
|
|
|
| Net deferred tax liabilities |
$ |
(9,108) |
|
|
$ |
(14,897) |
|
(a) A valuation allowance was provided against US capital loss in connection with the stock sale of Prime Turbines, certain state net operating loss, 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.
|