Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of income (loss) from continuing operations before taxes

Income from operations before taxes for the years ended December 31, 2019, 2018, and 2017, consisted of the following:


	For the Years Ended December 31,
	2019		2018		2017

U.S. operations	$	2,502	$	44,236	$	37,850
Foreign operations	3,365		5,293		5,502
Total	$	5,867	$	49,529	$	43,352

Summary of income tax benefit (provision)

Income tax benefits (provision) components for the years ended December 31, 2019, 2018, and 2017, consisted of the following:


		For the Years Ended December 31,
		2019				2018				2017

Current provision:
	Federal	$	(303)			$	(1922)			$	(779)
	State	(906)				(2810)				(532)
	Foreign	(1,062)				(617)				(786)
Total current provision				(2,271)				(5,349)				(2,097)
Deferred benefit (provision):
	Federal	6,018				(5,296)				(25,919)
	State	1,699				184				(345)
	Foreign	2,607				121				109
Total deferred benefit (provision)				10,324				(4,991)				(26,155)
Total benefit (provision)				$	8,053			$	(10,340)			$	(28,252)

Schedule of effective income tax rate reconciliation

The following is a reconciliation of the income taxes computed using the federal statutory rate to the provision for income taxes for the years ended December 31, 2019, 2018, and 2017:


	For the Years Ended December 31,
	2019		2018		2017

Tax at statutory rate (21% for 2019 and 2018, 35% for 2017)	$	(1,232)	$	(10,401)	$	(15,173)
State tax, net of federal tax benefit	1,956		(2,830)		(1,217)
Non-deductible expense and other	(266)		(300)		(830)
Effect of IP shift	8,125		—		—
Restricted stock units	55		833		(831)
Foreign tax rate differential	(532)		615		1,248
Federal/state research	519		—		—
GILTI	(1,244)		(299)		—
Mandatory repatriation of foreign earnings	—		—		(547)
Return to provision adjustment	760		778		(212)
Reserve related to unrecognized tax benefits	330		598		107
Interest and penalties	(6)		(6)		(1)
Effect of federal rate change	—		—		(11,806)
Effect of state rate changes, net of federal tax benefit	(227)		732		1,010
Change in valuation allowance	(185)		(60)		—
Total reconciliation amount	$	8,053	$	(10,340)	$	(28,252)

Summary of deferred tax assets and liabilities

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2019 and 2018, are as follows:


		December 31,
		2019				2018

Deferred income tax assets:
	Allowance for doubtful accounts	$	225			$	141
	Property and equipment	—				145
	ROU asset	3,122				—
	Inventories	4,732				4,672
	Stock-based compensation	785				562
	Sales returns accrual	5,794				5,058
	Acquisition costs, net of amortization	91				107
	Intangible assets	6,434				4,087
	Goodwill	786				926
	HzO investment	1,028				1,048
	Celio investment	157				—
	Capital loss carry-over	—				191
	Net operating loss carryforward	—				19
	Federal and state credit carryforwards	497				2,070
	Other liabilities, including foreign	3,341				1,894
	Total gross deferred tax assets	26,992				20,920
	Valuation allowance	(1,670)				(1,517)
Total deferred income tax assets				25,322				19,403

Deferred income tax liabilities:
	Property and equipment	(355)				—
	Lease liability	(2,310)				—
Total deferred tax liabilities				(2,665)				—

Deferred income tax assets, net				$	22,657			$	19,403

Schedule of unrecognized tax benefits

The tax contingencies, on a gross basis, are reconciled in the table below:


	December 31,
	2019		2018

Unrecognized tax benefits, as of January 1	$	1,398	$	2,278
Gross increases (decreases) – tax positions in current period	127		27

Gross increases (decreases) – lapse of statute	(457)		(907)
Total benefit	$	1,068	$	1,398