INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 2021, and 2020:

(in thousands)	2022		2021		2020
Current income tax provision:
Federal	$	152	$	1,296	$	9,232
State		249		1,320		559
Foreign		66		691		—
Total		467		3,307		9,791
Deferred income tax benefit
Federal		(13,382)		(12,163)		(14,125)
State		(1,722)		(5,122)		744
Foreign		(128)		336		345
Total		(15,232)		(16,949)		(13,036)
Change in valuation allowance		(4)		187		(169)
Total benefit for income taxes	$	(14,769)	$	(13,455)	$	(3,414)

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,
	2022		2021		2020
US Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal benefit	3.2	%	3.3	%	1.9	%
Foreign taxes	0.1	%	(1.0)	%	(0.1)	%
Change in valuation allowance	—	%	(0.3)	%	0.7	%
Stock-based compensation	(1.4)	%	(1.7)	%	(2.5)	%
Non-deductible costs	(0.5)	%	(0.8)	%	(3.5)	%
Change in state apportionment factors, state and foreign rates	(0.1)	%	5.5	%	(7.3)	%
Research and experimentation and charitable credits	1.4	%	0.9	%	0.9	%
Transfer pricing and other	(0.1)	%	(2.9)	%	2.0	%
Effective income tax rate	23.6	%	24.0	%	13.1	%

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)	2022		2021
Deferred tax assets:
Accruals and advances	$	9,233	$	10,149
Stock-based compensation		6,041		5,108
Accruals for chargebacks and returns		15,344		18,371
Inventory		5,292		5,983
Intangible asset		33,431		23,470
Net operating loss carryforwards		5,994		6,038
Other		16,548		8,758
Total deferred tax assets	$	91,883	$	77,877
Deferred tax liabilities:
Depreciation	$	(5,776)	$	(6,601)
Intangible assets		—		(11)
Other		(4,298)		(2,879)
Total deferred tax liabilities	$	(10,074)	$	(9,491)
Valuation allowance		(446)		(450)
Deferred tax assets, net of deferred tax liabilities and valuation allowance	$	81,363	$	67,936