Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Summary of income (loss) from continuing operations before taxes

Income (loss) from continuing operations before taxes for the years ended December 31, 2017, 2016, and 2015 consisted of the following:



	2017		2016			2015
US operations	$	37,850	$	(22,220	)	$	26,852
Foreign operations	5,502		(1,339		)	(1,154		)
Total	$	43,352	$	(23,559	)	$	25,698

Summary of income tax benefit (provision)

The components of income tax benefit (provision) for the years ended December 31, 2017, 2016 and 2015, are:



	2017			2016			2015
Current benefit (provision):
Federal	$	(779	)	$	(89	)	$	(9,429	)
State	(532		)	138			(1,783		)
Foreign	(786		)	(31		)	(61		)
Total current	(2,097		)	18			(11,273		)
Deferred benefit (provision):
Federal	(25,919		)	7,612			973
State	(345		)	342			189
Foreign	109			—			—
Total deferred	(26,155		)	7,954			1,162
Total benefit (provision)	$	(28,252	)	$	7,972		$	(10,111	)

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, 2017, 2016 and 2015:



	2017		2016		2015
Tax at statutory rate (35%)	(15,173	)	8,246		(8,994	)
State tax, net of federal tax benefit	(1,217	)	1,041		(1,089	)
Non-deductible expense and other	(830	)	333		116
Restricted stock units	(831	)	—		—
Foreign tax rate differential	1,248		(491	)	(464	)
Domestic production activities deduction	—		—		459
Mandatory repatriation of foreign earnings	(547	)	—		—
Return to provision adjustment	(212	)	(36	)	126
Reserve related to unrecognized tax benefits	107		(452	)	(264	)
Interest and penalties	(1	)	(14	)	(1	)
Effect of federal rate change	(11,806	)	—		—
Effect of state rate changes, net of federal tax benefit	1,010		(655	)	—
	(28,252	)	7,972		(10,111	)

Summary of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities are as follows:



	2017			2016
Deferred tax assets:
Allowance for doubtful accounts	$	146		$	286
Property and equipment	396			—
Deferred revenue	11			27
Inventories	7,265			12,724
Stock-based compensation	790			1,857
Sales returns accrual	4,343			7,788
Acquisition costs, net of amortization	116			191
Intangible assets	2,230			77
Goodwill	1,009			1,663
HzO investment	1,007			1,483
Capital loss carry-over	184			271
Reserve on note receivable	—			328
Net operating loss carryforward	3,338			21,313
Federal and state credit carryforwards	3,440			2,816
Other liabilities	1,586			1,619
Total gross deferred tax assets	25,861			52,443
Valuation allowance	(1,458		)	(1,753		)
Total deferred tax assets	$	24,403		$	50,690

Deferred tax liabilities:
Property and equipment	$	—		$	323
Other	—			4
Total gross deferred tax liabilities	—			327
Net deferred tax assets	$	24,403		$	50,363

Schedule of unrecognized tax benefits

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



	2017			2016
Unrecognized tax benefits, as of January 1	$	2,230		$	1,265
Unrecognized tax benefits assumed in acquisition	—			513
Gross increases (decreases) – tax positions in current period	444			479
Gross increases (decreases) – prior year tax positions	58			—
Gross increases (decreases) – lapse of statute	(454		)	(27		)
Total benefit	$	2,278		$	2,230