INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020, and 2019:

(in thousands)	2021		2020		2019
Current income tax provision:
Federal	$	1,296	$	9,232	$	4,985
State		1,320		559		1,212
Foreign		691		—		—
Total		3,307		9,791		6,197
Deferred income tax benefit
Federal		(12,163)		(14,125)		(6,274)
State		(5,122)		744		(2,027)
Foreign		336		345		1,000
Total		(16,949)		(13,036)		(7,301)
Change in valuation allowance		187		(169)		(1,833)
Total benefit for income taxes	$	(13,455)	$	(3,414)	$	(2,937)

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,
	2021		2020		2019
US Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal benefit	3.3	%	1.9	%	3.2	%
Foreign taxes	(1.0)	%	(0.1)	%	0.4	%
Change in valuation allowance	(0.3)	%	0.7	%	(58.1)	%
Stock-based compensation	(1.7)	%	(2.5)	%	(6.7)	%
Non-deductible costs	(0.8)	%	(3.5)	%	9.1	%
Change in state apportionment factors, state and foreign rates	5.5	%	(7.3)	%	(28.1)	%
Research and experimentation and charitable credits	0.9	%	0.9	%	(33.5)	%
Transfer pricing and other	(2.9)	%	2.0	%	(0.3)	%
Effective income tax rate	24.0	%	13.1	%	(93.0)	%

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)	2021		2020
Deferred tax assets:
Accruals and advances	$	10,149	$	7,174
Stock-based compensation		5,108		4,277
Accruals for chargebacks and returns		18,371		13,831
Inventory		5,983		6,101
Intangible asset		23,470		21,911
Net operating loss carryforwards		6,038		4,090
Other		8,758		2,171
Total deferred tax assets	$	77,877	$	59,555
Deferred tax liabilities:
Depreciation	$	(6,601)	$	(5,913)
Intangible assets		(11)		(11)
Other		(2,879)		(1,664)
Total deferred tax liabilities	$	(9,491)	$	(7,588)
Valuation allowance		(450)		(263)
Deferred tax assets, net of deferred tax liabilities and valuation allowance	$	67,936	$	51,704