INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of Components of Income Tax Expense (Benefit)

Our total provision for income taxes consists of the following for the years ended December 31, 2020, 2019, and 2018:

(in thousands)	2020		2019		2018
Current income tax provision:
Federal	$	9,232	$	4,985	$	7,985
State		559		1,212		1,751
Total		9,791		6,197		9,736
Deferred income tax (benefit)/provision:
Federal		(14,125)		(6,274)		(4,630)
State		744		(2,027)		(556)
Foreign		345		1,000		(214)
Total		(13,036)		(7,301)		(5,400)
Change in valuation allowance		(169)		(1,833)		221
Total (benefit)/provision for income taxes	$	(3,414)	$	(2,937)	$	4,557

Schedule of Effective Income Tax Rate Reconciliation

The difference between our expected income tax provision from applying U.S. Federal statutory tax rates to the pre-tax income and actual income tax provision relates primarily to the effect of the following:

	As of December 31,
	2020		2019		2018
US Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal benefit	1.9	%	3.2	%	2.4	%
Foreign taxes	(0.1)	%	0.4	%	26.5	%
Change in valuation allowance	0.7	%	(58.1)	%	(26.5)	%
Stock-based compensation	(2.5)	%	(6.7)	%	(1.8)	%
Non-deductible costs	(3.5)	%	9.1	%	—	%
Change in state apportionment factors, state and foreign rates	(7.3)	%	(28.1)	%	—	%
Research and experimentation and charitable credits	0.9	%	(33.5)	%	—	%
Transfer pricing and other	2.0	%	(0.2)	%	1.1	%
Effective income tax rate	13.1	%	(93.0)	%	22.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Our deferred income tax assets and liabilities consisted of the following:

	As of December 31,
(in thousands)	2020		2019
Deferred tax assets:
Accruals and advances	$	7,174	$	8,586
Stock-based compensation		4,277		3,750
Accruals for chargebacks and returns		13,831		7,603
Inventory		6,101		4,720
Intangible asset		21,911		14,923
Net operating loss carryforwards		4,090		4,767
Other		2,171		1,459
Total deferred tax assets	$	59,555	$	45,808
Deferred tax liabilities:
Depreciation	$	(5,913)	$	(6,029)
Intangible assets		(11)		(13)
Other		(1,664)		(1,008)
Total deferred tax liabilities	$	(7,588)	$	(7,050)
Valuation allowance		(263)		(432)
Deferred tax assets, net of deferred tax liabilities and valuation allowance	$	51,704	$	38,326