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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2018
Components of Income before Income Taxes | The components of income before income taxes and equity in earnings are as follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Domestic |  | $ | 5,455 |  |  | $ | 17,728 |  |  | $ | 22,114 |
Foreign |  |  | (4,946 | ) |  |  | (6,949 | ) |  |  | (112 | )
Total income before income taxes and equity in earnings |  | $ | 509 |  |  | $ | 10,779 |  |  | $ | 22,002 |
Provision for Income Taxes | The provision for income taxes (before equity in earnings) consists of:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 775 |  |  | $ | 7,041 |  |  | $ | 8,000 |
State and local |  |  | 351 |  |  |  | 957 |  |  |  | 498 |
Foreign |  |  | (323 | ) |  |  | 4 |  |  |  | 483 |
Deferred |  |  | 2,086 |  |  |  | 1,030 |  |  |  | (1,951 | )
Income tax provision |  | $ | 2,889 |  |  | $ | 9,032 |  |  | $ | 7,030 |
Significant Components of Deferred Income Tax Assets | Significant components of the Company’s deferred income tax assets and (liabilities) are as follows:
|  | December 31, |
|  | 2018 |  |  | 2017 |
|  | (in thousands) |
Deferred income tax assets: |  |  |  |  |  |  |  |
Deferred rent expense |  | $ | 3,504 |  |  | $ | 2,212 |
Stock options |  |  | 2,982 |  |  |  | 2,903 |
Inventory |  |  | 1,446 |  |  |  | 970 |
Operating loss and non-deductible interest carry-forward |  |  | 7,071 |  |  |  | 4,114 |
Accounts receivable allowances |  |  | 734 |  |  |  | 264 |
Accrued compensation |  |  | 1,026 |  |  |  | 623 |
Depreciation and amortization |  |  | — |  |  |  | 247 |
Other |  |  | 1,753 |  |  |  | 1,882 |
Total deferred income tax assets |  | $ | 18,516 |  |  | $ | 13,215 |
Significant Components of Net Deferred Income Tax Asset (Liability) |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  | $ | (2,540 | ) |  | $ | — |
Intangibles |  |  | (27,534 | ) |  |  | (8,732 | )
Equity in earnings |  |  | — |  |  |  | (56 | )
Total deferred income tax liabilities |  |  | (30,074 | ) |  |  | (8,788 | )
Net deferred income tax (liability) asset |  |  | (11,558 | ) |  |  | 4,427 |
Valuation allowance |  |  | (2,850 | ) |  |  | (3,024 | )
Net deferred income tax (liability) asset |  | $ | (14,408 | ) |  | $ | 1,403 |
Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates | The provision for income taxes (before equity in earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Provision for federal income taxes at the statutory rate |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increases (decreases): |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of Federal income tax benefit |  |  | 97.4 |  |  |  | 6.1 |  |  |  | 3.6 |
Foreign rate differences |  |  | (110.3 | ) |  |  | 7.2 |  |  |  | (7.9 | )
Non-deductible expenses |  |  | 228.5 |  |  |  | 3.7 |  |  |  | 3.4 |
Tax Act- revaluation of net deferred tax assets and other |  |  | 16.8 |  |  |  | 27.7 |  |  |  | — |
Tax Act- transition tax |  |  | 43.0 |  |  |  | 3.1 |  |  |  | — |
Uncertain tax positions |  |  | 302.8 |  |  |  | 0.6 |  |  |  | — |
Research and development credit |  |  | (18.5 | ) |  |  | — |  |  |  | — |
Federal return to provision |  |  | (27.5 | ) |  |  | — |  |  |  | — |
Other |  |  | 14.4 |  |  |  | 0.4 |  |  |  | (2.1 | )
Provision for income taxes |  |  | 567.6 | % |  |  | 83.8 | % |  |  | 32.0 | %
Estimated Values of Gross Uncertain Tax Positions | The estimated values of the Company’s gross uncertain tax positions at December 31, 2018, 2017 and 2016 are liabilities of $2.0 million, $161,000 and $109,000, respectively, and consist of the following:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Balance at January 1 |  | $ | (161 | ) |  | $ | (109 | ) |  | $ | (157 | )
Additions based on tax positions related to the current year |  |  | (626 | ) |  |  | (82 | ) |  |  | — |
Additions based on tax positions related to the prior year |  |  | (1,302 | ) |  |  | — |  |  |  | — |
Reductions for tax position of prior years |  |  | 114 |  |  |  | 30 |  |  |  | — |
Settlements |  |  | — |  |  |  | — |  |  |  | 48 |
Balance at December 31 |  | $ | (1,975 | ) |  | $ | (161 | ) |  | $ | (109 | )

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