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INCOME TAXES | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of income (loss) before income taxes were as follows (as restated) (in thousands):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Restated) |  | (Restated) |  | (Restated)
Domestic | $ | (33,239) |  |  | $ | 42,257 |  |  | $ | 49,905 |
Foreign | (15,074) |  |  | 5,702 |  |  | 2,436 |
Total income before taxes | $ | (48,313) |  |  | $ | 47,959 |  |  | $ | 52,341 |
The provision for income taxes consisted of the following (as restated) (in thousands):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Restated) |  | (Restated) |  | (Restated)
Current - |  |  |  |  |
Federal | $ | (6,348) |  |  | $ | 5,396 |  |  | $ | 8,058 |
State | (240) |  |  | 1,976 |  |  | 2,416 |
Foreign | 2,624 |  |  | 2,982 |  |  | 2,629 |
Total current | $ | (3,964) |  |  | $ | 10,354 |  |  | $ | 13,103 |
Deferred - |  |  |  |  |
Federal | (10,567) |  |  | 2,372 |  |  | 2,389 |
State | (3,126) |  |  | (249) |  |  | 123 |
Foreign | (1,039) |  |  | (1,283) |  |  | (1,508) |
Total deferred | $ | (14,732) |  |  | $ | 840 |  |  | $ | 1,004 |
Total current and deferred taxes | $ | (18,696) |  |  | $ | 11,194 |  |  | $ | 14,107 |
The difference between income taxes computed at the statutory income tax rate and the provision for income taxes is as follows (as restated) (in thousands):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Restated) |  | (Restated) |  | (Restated)
Income taxes computed at federal statutory rate | $ | (10,146) |  |  | $ | 10,029 |  |  | $ | 10,992 |
State income taxes, net of federal benefit | (2,625) |  |  | 1,331 |  |  | 2,010 |
Foreign taxes | (493) |  |  | 311 |  |  | 150 |
Nondeductible expenses | 5,617 |  |  | 1,108 |  |  | 506 |
Enacted rate changes | 670 |  |  | — |  |  | — |
Research and development tax credit | (16,879) |  |  | (2,324) |  |  | (480) |
Foreign tax credit | — |  |  | (57) |  |  | (346) |
Valuation allowance | 16 |  |  | (5) |  |  | — |
Tax reform deferred tax remeasurement | — |  |  | — |  |  | 81 |
Deferred tax liability true up | (551) |  |  | 1,065 |  |  | — |
Uncertain tax positions | 5,057 |  |  | 665 |  |  | 172 |
Other | 638 |  |  | (929) |  |  | 1,022 |
Total income tax expense (benefit) | $ | (18,696) |  |  | $ | 11,194 |  |  | $ | 14,107 |
Deferred tax liabilities and assets were comprised of the following (in thousands):
| December 31,
| 2020 |  | 2019
Deferred tax assets: |  |  | (Restated)
Allowance for doubtful accounts | $ | 1,784 |  |  | $ | 1,657 |
Inventory | 7,072 |  |  | 3,526 |
Research and development credit carryforward | 8,408 |  |  | 1,360 |
Foreign tax credit carryforward | 64 |  |  | 64 |
Net operating loss carryforward | 802 |  |  | 812 |
Capital loss carryforward | 12,813 |  |  | 12,363 |
Deferred compensation | 540 |  |  | — |
Accruals | 5,690 |  |  | 4,077 |
Investment in partnerships | 319 |  |  | 500 |
Other | 312 |  |  | — |
Total deferred tax assets | $ | 37,804 |  |  | $ | 24,359 |
Less valuation allowance | (12,813) |  |  | (12,363) |
Total deferred tax asset, net of valuation deferred tax liabilities : | $ | 24,991 |  |  | $ | 11,996 |
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) |  |  | (70) |
Net deferred tax liability | $ | (1,777) |  |  | $ | (9,602) |
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,
| 2020 |  | 2019 |  | 2018
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 |  | Foreign |  | Expiration
Net operating loss - foreign | $ | — |  |  | $ | 414 |  |  | 2034 - 2040
Net operating loss - federal | 388 |  |  | — |  |  | 2036 - 2040
Capital loss carryforward - foreign | — |  |  | 4 |  |  | Indefinite
Capital loss carryforward - federal | 12,809 |  |  | — |  |  | 2021
Foreign tax credits | 64 |  |  | — |  |  | 2023, 2025
Federal research and development tax credits | 4,467 |  |  | — |  |  | 2026 - 2030
Texas research and development tax credits | 3,702 |  |  | — |  |  | 2037 - 2040
Louisiana research and development tax credits | 239 |  |  | — |  |  | 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)
| 2020 |  | 2019 |  | 2018
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.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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