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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense | The components of income tax expense are as follows:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (27 | ) |  | $ | 4,423 |  |  | $ | 6,020 |
State |  |  | 88 |  |  |  | 1,038 |  |  |  | 507 |
Foreign |  |  | 1,548 |  |  |  | 626 |  |  |  | 3,159 |
|  |  | 1,609 |  |  |  | 6,087 |  |  |  | 9,686 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (4,730 | ) |  |  | 1,961 |  |  |  | 17,034 |
State |  |  | 506 |  |  |  | (73 | ) |  |  | 643 |
Foreign |  |  | 108 |  |  |  | 275 |  |  |  | (470 | )
|  |  | (4,116 | ) |  |  | 2,163 |  |  |  | 17,207 |
Total income tax expense (benefit) |  | $ | (2,507 | ) |  | $ | 8,250 |  |  | $ | 26,893 |
Income before Tax | The income before tax is comprised of the following:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Domestic operations |  | $ | (7,087 | ) |  | $ | 49,089 |  |  | $ | 57,079 |
Foreign operations |  | $ | 6,490 |  |  | $ | 4,257 |  |  | $ | 2,723 |
Income Before Provision for Income Taxes | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended December 31, 2019 and 2018, and 35% for years ended December 31, 2017 to income before provision for income taxes as follows:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Federal income tax provision at statutory rate |  | $ | (125 | ) |  | $ | 11,203 |  |  | $ | 20,931 |
State taxes, net of federal effect |  |  | 113 |  |  |  | 747 |  |  |  | 573 |
Foreign taxes, net of federal effect |  |  | (1,277 | ) |  |  | 17 |  |  |  | (238 | )
Domestic manufacturing benefit |  |  | — |  |  |  | — |  |  |  | (1,569 | )
Foreign Derived Intangible Income ("FDII") Deduction |  |  | (2,278 | ) |  |  | (2,217 | ) |  |  | — |
Global Intangible Low-Taxes Income ("GILTI") inclusion |  |  | 1,786 |  |  |  | 113 |  |  |  | — |
Non-deductible officer's compensation |  |  | 826 |  |  |  | 526 |  |  |  | — |
Research & development tax credit |  |  | (2,126 | ) |  |  | (2,298 | ) |  |  | (1,559 | )
Remeasurement of deferred tax balances, related to the Tax Act |  |  | — |  |  |  | (33 | ) |  |  | 8,020 |
Transition tax on foreign earnings, related to the Tax Act |  |  | — |  |  |  | 138 |  |  |  | (106 | )
Other |  |  | 574 |  |  |  | 54 |  |  |  | 841 |
Provision (benefit) for income taxes |  | $ | (2,507 | ) |  | $ | 8,250 |  |  | $ | 26,893 |
Effective tax rate |  |  | 420 | % |  |  | 15 | % |  |  | 45 | %
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are comprised of the following:
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Reserves and accruals |  | $ | 8,254 |  |  | $ | 4,880 |
Deferred revenue |  |  | 1,219 |  |  |  | 1,201 |
Share-based compensation |  |  | 2,955 |  |  |  | 1,259 |
Tax credit carryforward |  |  | 11,307 |  |  |  | 2,484 |
Net operating losses |  |  | 6,008 |  |  |  | 1,692 |
Depreciation and amortization |  |  | 7,151 |  |  |  | 4,298 |
Operating lease right-of-use assets (1) |  |  | 4,965 |  |  |  | — |
Other |  |  | 1,128 |  |  |  | 777 |
Gross deferred tax assets |  |  | 42,987 |  |  |  | 16,591 |
Less: valuation allowance |  |  | (14,160 | ) |  |  | (3,172 | )
Total deferred tax assets after valuation allowance |  |  | 28,827 |  |  |  | 13,419 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (89,286 | ) |  |  | (609 | )
Operating lease liabilities (1) |  |  | (4,709 | ) |  |  | — |
Other |  |  | (416 | ) |  |  | — |
Gross deferred tax liabilities |  |  | (94,411 | ) |  |  | (609 | )
Net deferred tax assets (liabilities) |  | $ | (65,584 | ) |  | $ | 12,810 |
(1) As discussed in Note 7 to the Consolidated Financial Statements, in 2019, the Company adopted an updated accounting standard that resulted in the recognition of operating right-of-use assets and lease liabilities. The Company adopted this standard using a transition method that does not require application to periods prior to adoption.
Unrecognized Tax Benefits | The total amount of unrecognized tax benefits are as follows:
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Balance, beginning of the period |  | $ | 5,528 |  |  | $ | 4,880 |  |  | $ | 4,827 |
Gross increases—tax positions in prior period |  |  | 9,989 |  |  |  | 496 |  |  |  | 171 |
Gross decreases—tax positions in prior period |  |  | (932 | ) |  |  | (61 | ) |  |  | (362 | )
Gross increases—current-period tax positions |  |  | 558 |  |  |  | 213 |  |  |  | 244 |
Lapse of statute of limitations |  |  | — |  |  |  | — |  |  |  | — |
Balance, end of the period |  | $ | 15,143 |  |  | $ | 5,528 |  |  | $ | 4,880 |

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