EEI 2017 Form 10-K

Table of Contents The income tax provision is summarized in the following table. Fiscal Year Ended July 31, 2017 2016 2015 (in thousands) Current: Federal $ (149) $ 1,155 $ 488 State 42 177 80 Foreign 655 730 2,047 Total current 548 2,062 2,615 Deferred: Federal 2,075 587 1,379 State 308 269 172 Foreign (459) 841 (397) Total deferred 1,924 1,697 1,154 Total income tax provision $ 2,472 $ 3,759 $ 3,769 A reconciliation of the income tax provision using the statutory U.S. income tax rate compared with the actual income tax provision reported on the consolidated statements of operations is summarized in the following table. Fiscal Year Ended July 31, 2017 2016 2015 (in thousands) Income tax provision at the U.S. federal statutory income tax rate $ 1,845 $ 1,485 $ 2,709 Foreign dividend income 240 263 508 State taxes, net of federal benefit 200 312 166 Brazil valuation allowance 137 1,582 --- Other permanent differences 54 88 209 Peru non-deductible expenses 53 59 167 Other foreign taxes, net of federal benefit 14 153 161 International rate differences 2 (145) (338) Income from "pass-through" entities taxable to noncontrolling partners (1) (39) 31 Re-evaluation and settlements of tax contingencies (33) --- --- Canada and China valuation allowance (39) 1 156 Income tax provision, as reported on the consolidated statements of operations $ 2,472 $ 3,759 $ 3,769 The significant components of deferred tax assets and liabilities are summarized in the following table. Balance at July 31, 2017 2016 (in thousands) Deferred tax assets: Contract and other reserves $ 520 $ 3,023 Accrued compensation and expenses 752 734 Net operating loss carryforwards 1,470 1,265 Foreign and state income taxes 17 59 Foreign tax credit 296 296 Federal benefit from foreign tax audits --- 157 Other 714 (26) Deferred tax assets 3,769 5,508 Less: valuation allowance (2,020) (2,278) Net deferred tax assets $ 1,749 $ 3,230 Deferred tax liabilities: Federal expense on state deferred taxes $ (73) $ (133) Fixed assets and intangibles (144) (759) Federal expense from foreign accounting differences (332) (213) Net deferred tax liabilities $ (549) $ (1,105) 51