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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Taxes [Abstract] |
Income Taxes | 11. INCOME TAXES Income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 | ​ | 2017
Current | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 11,024 | ​ | $ | 16,398 | ​ | $ | 12,448
State | ​ | ​ | 1,825 | ​ | ​ | 1,048 | ​ | ​ | 780
Total current | ​ | ​ | 12,849 | ​ | ​ | 17,446 | ​ | ​ | 13,228
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | 2,323 | ​ | ​ | (2,393) | ​ | ​ | (667)
State | ​ | ​ | (729) | ​ | ​ | (89) | ​ | ​ | (63)
Foreign | ​ | ​ | 4 | ​ | ​ | (205) | ​ | ​ | 107
Total deferred | ​ | ​ | 1,598 | ​ | ​ | (2,687) | ​ | ​ | (623)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Provision for income taxes | ​ | $ | 14,447 | ​ | $ | 14,759 | ​ | $ | 12,605
​ The total provision for income taxes for the years ended December 31, 2019, 2018 and 2017 was $14.5 million, $14.8 million and $12.7 million, respectively. Those amounts have been allocated to the following financial statement items:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 | ​ | 2017
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income from operations | ​ | $ | 14,447 | ​ | $ | 14,759 | ​ | $ | 12,605
Stockholders' equity, unrealized losses on | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
investment securities & foreign currency | ​ | ​ | 75 | ​ | ​ | 43 | ​ | ​ | 52
Total provision for income taxes | ​ | $ | 14,522 | ​ | $ | 14,802 | ​ | $ | 12,657
​ Significant components of the Company’s deferred tax assets (liabilities) consisted of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2019 | ​ | December 31, 2018
​ | ​ | ​ | ​ | ​ | ​ | ​
Reserves on inventory and sales | ​ | $ | 745 | ​ | $ | 647
Credit and loss carryforwards | ​ | ​ | 1,269 | ​ | ​ | 681
Stock compensation | ​ | ​ | 756 | ​ | ​ | 812
Accrued expenses and deferred costs | ​ | ​ | 2,639 | ​ | ​ | 2,473
Inventory capitalization | ​ | ​ | 307 | ​ | ​ | 275
Unrealized gain on investments | ​ | ​ | - | ​ | ​ | 65
Total deferred tax assets | ​ | ​ | 5,716 | ​ | ​ | 4,953
​ | ​ | ​ | ​ | ​ | ​ | ​
Unrealized loss on investments | ​ | ​ | (10) | ​ | ​ | -
Prepaid expenses | ​ | ​ | (1,034) | ​ | ​ | (774)
Depreciation | ​ | ​ | (3,365) | ​ | ​ | (1,199)
Total deferred tax liabilities | ​ | ​ | (4,409) | ​ | ​ | (1,973)
​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax assets | ​ | $ | 1,307 | ​ | $ | 2,980
​ The reconciliation of the United States federal statutory tax provision to the Company’s provision for income taxes for the years ended December 31, 2019, 2018 and 2017 (in thousands, except percentages):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 | ​ | 2017
Statutory federal tax | ​ | $ | 19,396 | ​ | 21.0% | ​ | $ | 14,815 | ​ | 21.0% | ​ | $ | 14,114 | ​ | 35.0%
State income taxes, net of federal benefit | ​ | ​ | 864 | ​ | 0.9% | ​ | ​ | 769 | ​ | 1.1% | ​ | ​ | 446 | ​ | 1.1%
Foreign taxes | ​ | ​ | 4 | ​ | 0.0% | ​ | ​ | 174 | ​ | 0.3% | ​ | ​ | (77) | ​ | -0.2%
Domestic manufacturer deduction | ​ | ​ | - | ​ | 0.0% | ​ | ​ | - | ​ | 0.0% | ​ | ​ | (870) | ​ | -2.2%
Share-based compensation | ​ | ​ | (6,424) | ​ | -7.0% | ​ | ​ | (1,852) | ​ | -2.6% | ​ | ​ | (1,191) | ​ | -3.0%
Other permanent differences | ​ | ​ | 1,004 | ​ | 1.1% | ​ | ​ | 615 | ​ | 0.8% | ​ | ​ | 147 | ​ | 0.4%
Research and development and jobs credits | ​ | ​ | (579) | ​ | -0.6% | ​ | ​ | (85) | ​ | -0.1% | ​ | ​ | - | ​ | 0.0%
Effect of Federal tax law change | ​ | ​ | - | ​ | 0.0% | ​ | ​ | - | ​ | 0.0% | ​ | ​ | (222) | ​ | -0.6%
Other | ​ | ​ | 182 | ​ | 0.2% | ​ | ​ | 323 | ​ | 0.4% | ​ | ​ | 258 | ​ | 0.8%
Provision for income taxes | ​ | $ | 14,447 | ​ | 15.6% | ​ | $ | 14,759 | ​ | 20.9% | ​ | $ | 12,605 | ​ | 31.3%
​ On December 22, 2017, the President of the United States signed into law the TCJA. It amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the TCJA reduces the corporate federal tax rate from a maximum of 35% to a flat 21% rate. The rate reduction took effect on January 1, 2018. As a result of the reduction in the corporate income tax rate from 35% to 21% under the TCJA, the Company revalued its net deferred tax liability resulting in a reduction of approximately $0.4 million, which had been recorded as a reduction of income tax expense in the Company’s consolidated statements of income for the year ended December 31, 2017. The impact to the Company’s 2017 earnings per common share was an increase of approximately $0.04 per share. In addition, the 2019, 2018 and 2017 effective tax rate was impacted by the excess tax benefit from share-based compensation activity which is reflected as a reduction of the provision for income taxes. In 2019 and 2018, the effective tax rate was also impacted by the Company’s research and development credits. However, the 2017 effective tax rate was not impacted by the Company’s research and development credits. The Company has separate state and foreign net operating loss carry forwards totaling $18.0 million that start expiring in 2030. The company continues to utilize the net operating loss carry forward in 2020.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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