INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018, and 2017:

(in thousands)	2019		2018		2017
Current income tax provision:
Federal	$	4,985	$	7,985	$	13,175
State		1,212		1,751		690
Total		6,197		9,736		13,865
Deferred income tax (benefit)/provision:
Federal		(6,274)		(4,630)		4,065
State		(2,027)		(556)		(556)
Foreign		1,000		(214)		—
Total		(7,301)		(5,400)		3,509
Change in valuation allowance		(1,833)		221		51
Total (benefit)/provision for income taxes	$	(2,937)	$	4,557	$	17,425

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,
	2019		2018		2017
US Federal statutory rate	21.0	%	21.0	%	35.0	%
State taxes, net of Federal benefit	3.2	%	2.4	%	2.0	%
Foreign taxes	0.4	%	26.5	%	—	%
Impact of Tax Cuts and Jobs Act	—	%	—	%	81.9	%
Domestic production activities deduction	—	%	—	%	(8.8)	%
Change in valuation allowance	(58.1)	%	(26.5)	%	—	%
Stock-based compensation	(6.7)	%	(1.8)	%	0.8	%
Non-deductible costs	9.1	%	—	%	0.5	%
Change in state apportionment factors, state and foreign rates	(28.1)	%	—	%	—	%
Research and experimentation and charitable credits	(33.5)	%	—	%	(2.5)	%
Transfer pricing and other	(0.2)	%	1.1	%	(2.3)	%
Total income tax (benefit)/provision	(93.0)	%	22.7	%	106.6	%

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)	2019		2018
Deferred tax assets:
Accruals and advances	$	8,586	$	7,748
Stock-based compensation		3,750		—
Bond hedge		—		3,019
Accruals for chargebacks and returns		7,603		7,132
Inventory		4,720		1,228
Intangible asset		14,923		9,393
Net operating loss carryforwards		4,767		5,604
Other		1,459		4,682
Total deferred tax assets	$	45,808	$	38,806
Deferred tax liabilities:
Depreciation	$	(6,029)	$	(4,437)
Debt discount		—		(1,316)
Intangible assets		(13)		(11)
Other		(1,008)		(2,813)
Total deferred tax liabilities	$	(7,050)	$	(8,577)
Valuation allowance		(432)		(2,265)
Deferred tax assets, net of deferred tax liabilities and valuation allowance	$	38,326	$	27,964