INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

expense (benefit) for income taxes consists of the following for the years ended December 31:


(in thousands)	2023		2022		2021
Current income tax provision
Federal	$	9,117	$	152	$	1,296
State	3,534		249		1,320
Foreign	26		66		691
Total	12,677		467		3,307
Deferred income tax benefit
Federal	(7,601)		(13,382)		(12,163)
State	(3,946)		(1,722)		(5,122)
Foreign	(29)		(128)		336
Total	(11,576)		(15,232)		(16,949)
Change in valuation allowance	(8)		(4)		187
Total expense (benefit) for income taxes	$	1,093	$	(14,769)	$	(13,455)

Schedule of Effective Income Tax Rate Reconciliation

The difference between expected income tax expense (benefit) from applying U.S. Federal statutory tax rates to the pre-tax income (loss) and actual income tax expense (benefit) relates primarily to the effect of the following:


	As of December 31,
	2023		2022		2021
US Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal benefit	4.8	%	3.2	%	3.3	%
Foreign taxes	0.0%		0.1	%	(1.0)	%
Change in valuation allowance	0.0%		—	%	(0.3)	%
Stock-based compensation	10.8	%	(1.4)	%	(1.7)	%
Non-deductible costs	2.1	%	(0.5)	%	(0.8)	%
Change in state apportionment factors, state and foreign rates	(11.8)	%	(0.1)	%	5.5	%
Research and experimentation and charitable credits	(19.0)	%	1.4	%	0.9	%
Transfer pricing and other	(2.4)	%	(0.1)	%	(2.9)	%
Effective income tax rate	5.5	%	23.6	%	24.0	%

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. Deferred income tax assets and liabilities consisted of the following:


	As of December 31,
(in thousands)	2023		2022
Deferred tax assets:
Accruals and advances	$	12,470	$	9,233
Stock-based compensation	6,013		6,041
Accruals for chargebacks and returns	17,358		15,344
Inventories	4,569		5,292
Intangible assets	40,193		33,431
Net operating loss carryforwards	2,900		5,994
Capitalized research expenditures	11,294		4,708
Other	7,450		11,840
Total deferred tax assets	$	102,247	$	91,883
Deferred tax liabilities:
Depreciation	$	(5,658)	$	(5,776)
Other liabilities	(5,440)		(4,298)
Total deferred tax liabilities	$	(11,098)	$	(10,074)
Valuation allowance	(438)		(446)
Deferred tax assets, net of deferred tax liabilities and valuation allowance	$	90,711	$	81,363