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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of Income before Income Taxes | The components of income before income taxes and equity in earnings are as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (in thousands)
Domestic | $ | 18,012 |  |  | $ | (21,311) |  |  | $ | 5,455 |
Foreign | (12,463) |  |  | (22,462) |  |  | (4,946) |
Total income (loss) before income taxes and equity in earnings | $ | 5,549 |  |  | $ | (43,773) |  |  | $ | 509 |
Provision for Income Taxes | The provision for income taxes (before equity in earnings) consists of:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (in thousands)
Current: |  |  |  |  |
Federal | $ | 8,522 |  |  | $ | 906 |  |  | $ | 775 |
State and local | 2,540 |  |  | 884 |  |  | 351 |
Foreign | 665 |  |  | 392 |  |  | (323) |
Deferred | (1,861) |  |  | (1,073) |  |  | 2,086 |
Income tax provision | $ | 9,866 |  |  | $ | 1,109 |  |  | $ | 2,889 |
Significant Components of Net Deferred Income Tax Asset (Liability) | Significant components of the Company’s deferred income tax assets and (liabilities) are as follows:
| December 31,
| 2020 |  | 2019
| (in thousands)
Deferred income tax assets: |  |  |
Operating lease liabilities | $ | 27,502 |  |  | $ | 29,126 |
Stock options | 2,178 |  |  | 2,660 |
Inventory | 2,438 |  |  | 2,351 |
Operating loss carryforwards | 9,894 |  |  | 8,041 |
Accounts receivable allowances | 1,461 |  |  | 777 |
Accrued compensation | 1,839 |  |  | 846 |
Deferred compensation | 1,310 |  |  | 1,123 |
Other | 3,061 |  |  | 911 |
Total deferred income tax assets | $ | 49,683 |  |  | $ | 45,835 |
Deferred income tax liabilities: |  |  |
Operating lease right-of-use assets | $ | (23,127) |  |  | $ | (25,084) |
Fixed assets | (1,920) |  |  | (2,431) |
Intangibles | (28,447) |  |  | (27,782) |
Total deferred income tax liabilities | (53,494) |  |  | (55,297) |
Net deferred income tax liability | (3,811) |  |  | (9,462) |
Valuation allowance | (6,903) |  |  | (4,223) |
Net deferred income tax liability | $ | (10,714) |  |  | $ | (13,685) |
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,
| 2020 |  | 2019 |  | 2018
Federal income taxes at the statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (decreases): |  |  |  |  |
State and local income taxes, net of Federal income tax benefit | 38.9 |  |  | (1.7) |  |  | 97.4 |
Foreign rate differences | (43.9) |  |  | 2.1 |  |  | (76.1) |
Impairment of goodwill (1) | 65.5 |  |  | (20.8) |  |  | 98.6 |
Non-deductible expenses | 16.4 |  |  | (1.2) |  |  | 129.9 |
Tax Act- revaluation of net deferred tax assets and other | — |  |  | — |  |  | 16.8 |
Tax Act- transition tax | — |  |  | — |  |  | 43.0 |
Uncertain tax positions | 4.0 |  |  | (0.3) |  |  | 302.8 |
Research and development credit | (7.2) |  |  | 1.4 |  |  | (18.5) |
Federal return to provision | 6.8 |  |  | 0.4 |  |  | (27.5) |
Loss of Filament pre-acquisition attributes due to CARES Act | 8.6 |  |  | — |  |  | — |
Equity-based compensation | 19.4 |  |  | — |  |  | — |
Valuation Allowance | 48.3 |  |  | (3.1) |  |  | (34.2) |
Other | — |  |  | (0.3) |  |  | 14.4 |
Provision for income taxes | 177.8 | % |  | (2.5) | % |  | 567.6 | %
(1)In 2019, the rate for the impairment of goodwill was (20.8)% due to a pretax loss position.
Estimated Values of Gross Uncertain Tax Positions | The estimated values of the Company’s gross uncertain tax positions at December 31, 2020, 2019 and 2018 are liabilities of $1.6 million, $1.5 million and $2.0 million, respectively, and consist of the following:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (in thousands)
Balance at January 1 | $ | (1,508) |  |  | $ | (1,975) |  |  | $ | (161) |
Additions based on tax positions related to the current year | (149) |  |  | (29) |  |  | (626) |
Additions based on tax positions related to the prior year | — |  |  | — |  |  | (1,302) |
Reductions for tax position of prior years | 9 |  |  | 496 |  |  | 114 |
Balance at December 31 | $ | (1,648) |  |  | $ | (1,508) |  |  | $ | (1,975) |

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