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INCOME TAXES
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income (loss) before income taxes were as follows (in thousands):
 Years Ended December 31,
 202020192018
Domestic$(32,440)$41,184 $46,270 
Foreign(15,075)5,485 2,436 
Total income before taxes$(47,515)$46,669 $48,706 

The provision for income taxes consisted of the following (in thousands):
 Years Ended December 31,
 202020192018
Current -   
Federal$(6,179)$4,940 $7,295 
State(154)1,862 2,257 
Foreign2,663 2,982 2,629 
Total current$(3,670)$9,784 $12,181 
Deferred -   
Federal(10,568)2,618 2,389 
State(3,125)(224)123 
Foreign(1,078)(1,284)(1,508)
Total deferred$(14,771)$1,110 $1,004 
Total current and deferred taxes$(18,441)$10,894 $13,185 
The difference between income taxes computed at the statutory income tax rate and the provision for income taxes is as follows (in thousands):
 Years Ended December 31,
 202020192018
Income taxes computed at federal statutory rate$(9,978)$9,801 $10,228 
State income taxes, net of federal benefit(2,591)1,294 1,880 
Foreign taxes(492)311 150 
Nondeductible expenses5,617 1,108 954 
Enacted rate changes670 — — 
Research and development tax credit(16,878)(2,324)(480)
Foreign tax credit— (57)(346)
Valuation allowance16 (5)— 
Tax reform deferred tax remeasurement— — 81 
Deferred tax liability true up(551)1,065 — 
Uncertain tax positions5,057 665 172 
Other689 (964)546 
Total income tax expense (benefit)$(18,441)$10,894 $13,185 

Deferred tax liabilities and assets were comprised of the following (in thousands):
 December 31,
 20202019
Deferred tax assets:  
Allowance for doubtful accounts$1,784 $1,657 
Inventory7,073 3,254 
Research and development credit carryforward8,407 1,361 
Foreign tax credit carryforward64 64 
Net operating loss carryforward802 812 
Capital loss carryforward12,813 12,363 
Deferred compensation540 — 
Accruals5,690 4,077 
Investment in partnerships319 500 
Other312 — 
Total deferred tax assets$37,804 $24,088 
Less valuation allowance(12,813)(12,363)
Total deferred tax asset, net of valuation deferred tax liabilities :$24,991 $11,725 
Goodwill(8,570)(8,459)
Intangibles(8,512)(2,051)
Property and equipment(7,569)(8,319)
ROU asset and liability(323)— 
Unremitted foreign earnings(421)(421)
Deferred compensation— (317)
Method changes(754)(1,961)
Other(619)(69)
Net deferred tax liability$(1,777)$(9,872)

The Company records a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. If the Company was to determine
that it would be able to realize the deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. At December 31, 2020, the valuation allowance primarily relates to federal and foreign capital loss carryforwards.

The following summarizes changes in the balance of valuation allowances on deferred tax assets (in thousands):


  Years Ended December 31,
  202020192018
Balance at January 1$(12,363)$(12,564)$(12,220)
Changes due to federal and foreign capital loss carryforwards(450)201 (344)
Balance at December 31$(12,813)$(12,363)$(12,564)

Tax carryforwards available for use on future income tax returns, prior to valuation allowance, at December 31, 2020, were as follows (in thousands):

  Domestic  ForeignExpiration
Net operating loss - foreign$— $414 2034 - 2040
Net operating loss - federal388 — 2036 - 2040
Capital loss carryforward - foreign— 4 
Indefinite
Capital loss carryforward - federal12,809 — 2021
Foreign tax credits64 — 2023, 2025
Federal research and development tax credits4,467 — 2026 - 2030
Texas research and development tax credits3,700 — 2037 - 2040
Louisiana research and development tax credits239 — 2024 - 2025

Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions were as follows (in thousands):
  Assets (Liabilities)
  202020192018
Balance at January 1$— $— $— 
   Increases related to prior year tax positions(5,057)— — 
   Decreases related to prior year tax positions— — — 
   Increases related to current year tax positions— — — 
   Settlements— — — 
   Lapse of statute of limitations— — — 
Balance at December 31$(5,057)$— $— 

As of December 31, 2020, the Company had recorded a total tax benefit of $16.9 million related to federal and state research and development tax credits. This benefit is partially offset by $5.1 million uncertain tax position due to the uncertainty related to the realizability of the federal research and development tax credits.

To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts are classified as a component of income tax provision (benefit) in the consolidated financial statements consistent with Company's policy. For the year ended December 31, 2020, the Company did not record any tax expense for interest and penalties related to uncertain tax positions.

The Company is subject to taxation in the United States, various states, and foreign jurisdictions. The Company has significant operations in the United States and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally open in the United States for the tax years ended after 2012 and outside the United States for the tax years ended after 2012.