L. INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income or loss from operations before income taxes

The sources of the Company’s income from operations before income taxes were as follows (in thousands):

	Year ended December 31,
	2017		2016		2015
Domestic	$	17,497	$	10,047	14,062
Foreign		67,029		10,956	(2,894)
Total income before income taxes	$	84,526	$	21,003	11,168

Provision for income tax expense

The provision for income tax expense (benefit) for the years ended December 31, was as follows (in thousands):

Current:	2017		2016		2015
Federal	$	—	$	(15)	$	168
State		(292)		256		207
Foreign		10,965		962		—
Total	$	10,673	$	1,203	$	375
Deferred:
Federal	$	2,015	$	(10,794)	$	—
State		(1,669)		(130)		—
Foreign		(444)		(510)		—
Total	$	(98)	$	(11,434)	$	—
Income tax (benefit) expense	$	10,575	$	(10,231)	$	375

Net deferred tax assets and liabilities

At December 31, the net deferred tax assets and liabilities are comprised of the following approximate amounts (in thousands):

	2017		2016
NOL carryforward	$	7,739	$	12,866
Inventory reserves		837		869
AMT credit		345		424
Unrealized gains and losses		92		(6)
Share-based compensation		732		1,453
Foreign tax credit		2,018		—
Research and development credits		4,626		—
Other		573		255
Deferred tax assets		16,962		15,861
Less valuation allowance		—		(1,663)
Deferred tax assets, net		16,962		14,198
Depreciation and amortization		(4,161)		(2,777)
Deferred tax liabilities		(4,161)		(2,777)
Deferred tax assets, net	$	12,801	$	11,421

Reconciliation of the U.S. federal income tax rate

A reconciliation of the U.S. federal income tax rate of 35% for the years ended December 31, to the Company’s effective income tax rate follows (in thousands):

	2017		2016		2015
Expected taxes	$	29,584	$	7,351	$	3,797
Non-deductible/non-taxable items		1,212		565		157
Foreign rate differences		(11,656)		(654)		(1,267)
Foreign permanent differences		416		(1,005)		—
Increase (decrease) in valuation allowance		(1,700)		(13,063)		2,052
Share-based compensation		(10,348)		—		—
Section 382 limitation		—		(3,065)		(4,382)
Changes in tax rates		2,768		(361)		—
Repatriation tax, net of foreign tax credit		5,067		—		—
Research and development credits		(2,821)		—		—
Uncertain tax positions		(1,616)		—		—
Other, net		(331)		1		18
Tax (benefit) expense	$	10,575	$	(10,231)	$	375

Schedule of unrecognized tax benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):

	2017		2016		2015
Unrecognized tax benefits — January 1	$	1,797	$	1,797	$	1,659
Gross increases — tax positions in prior period				—		332
Gross decreases — tax positions in prior period		(1,616)		—		(194)
Unrecognized tax benefits — December 31	$	181	$	1,797	$	1,797