INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Our total provision from income taxes consists of the following for the years ended December 31, 2017, 2016, and 2015:

(in thousands)	2017		2016		2015
Current income tax provision:
Federal	$	13,175	$	11,717	$	7,264
State		690		1,321		611
Total		13,865		13,038		7,875
Deferred income tax provision/(benefit):
Federal		4,065		(8,387)		(1,468)
State		(556)		(658)		(409)
Total		3,509		(9,045)		(1,877)
Change in valuation allowance		51		134		-
Excess tax benefit from stock-based compensation awards		-		617		360
Total provision for income taxes	$	17,425	$	4,744	$	6,358

Schedule of Effective Income Tax Rate Reconciliation

The difference between our expected income tax provision from applying 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,
	2017			2016			2015
US Federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of Federal benefit		2.0	%		2.1	%		2.1	%
Impact of Tax Cuts and Jobs Act		81.9	%		-	%		-	%
International tax structure impacts		-	%		23.3	%		-	%
Domestic production activities deduction		(8.8)	%		(14.4)	%		(5.3)	%
Change in valuation allowance		-	%		1.6	%		-	%
Stock-based compensation – no windfall tax benefits		1.0	%		5.7	%		1.1	%
Stock-based compensation – windfall tax benefit		(0.2)	%		-	%		(0.1)	%
Change in tax rates and other		(4.3)	%		1.4	%		(3.5)	%
Total income tax provision/(benefit)		106.6	%		54.7	%		29.3	%

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)	2017		2016
Deferred tax assets:
Accruals and advances	$	5,254	$	3,002
Bond hedge		5,617		10,921
Accruals for chargebacks and returns		4,927		7,137
Inventory		857		1,255
Intangible asset		6,355		6,302
Net operating loss carryforward		3,029		5,095
Other		3,030		1,680
Total deferred tax assets	$	29,069	$	35,392
Deferred tax liabilities:
Depreciation	$	(1,110)	$	(857)
Debt discount		(3,256)		(7,664)
Intangible assets		(11)		(353)
Other		(1,699)		(16)
Total deferred tax liabilities	$	(6,076)	$	(8,890)
Valuation allowance		(326)		(275)
Total deferred tax asset, net	$	22,667	$	26,227