Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income before income taxes

The components of income before income taxes is summarized as follows:

	Year Ended December 31,
(in thousands)	2018		2017		2016
U.S.	$	46,945	$	39,559	$	23,736
International	2,603		80		4,558
Income before income taxes	$	49,548	$	39,639	$	28,294

Schedule of income tax expense (benefit)

The income tax expense (benefit) is summarized as follows:

	Year Ended December 31,
(in thousands)	2018			2017			2016
Current
Federal	$	(21	)	$	(58	)	$	(91	)
State	3,424			3,242			1,689
International	(135		)	16			(49		)
	3,268			3,200			1,549
Deferred
Federal	7,821			(71,742		)	—
State	1,411			(15,220		)	—
International	(3,470		)	16			(17		)
	5,762			(86,946		)	(17		)
Income tax expense (benefit)	$	9,030		$	(83,746	)	$	1,532

Schedule of reconciliation of income taxes at the U.S. federal statutory rate to the actual income taxes

The reconciliation of income taxes at the U.S. federal statutory rate to the actual income taxes is as follows:

	Year Ended December 31,
(in thousands)	2018			2017			2016
U.S. statutory rate	$	10,405		$	13,873		$	9,903
Permanent items	505			(1,916		)	(570		)
Write-off of foreign tax and research credits	—			—			7,125
Foreign tax credits	—			—			(319		)
Uncertain tax positions	3,227			3,128			1,529
Other tax credits	(742		)	(175		)	90
State and local taxes	2,125			1,252			433
Impact of rate change on deferred taxes	—			45,129			(383		)
True-up of prior year tax	—			7			(2,751		)
Foreign tax rate differential	30			97			(242		)
Valuation allowance	(4,073		)	(141,094		)	(13,292		)
Benefit of windfall related to stock compensation	(1,760		)	(2,723		)	—
Increase in indemnification deferred tax asset	(731		)	(1,055		)	—
Other	44			(269		)	9
Income tax expense (benefit)	$	9,030		$	(83,746	)	$	1,532

Schedule of components of deferred incomes tax assets (liabilities)

The components of deferred income tax assets (liabilities) are as follows:

	December 31,
(in thousands)	2018			2017
Deferred Tax Assets
Federal benefit of state tax liabilities	$	7,809		$	7,510
Reserves, accruals and other	11,005			9,251
Inventory obsolescence	428			239
Capitalized research and development	7,491			9,941
Amortization of intangibles other than goodwill	2,809			3,903
Net operating loss carryforwards	55,938			63,202
Depreciation	—			972
Deferred tax assets	85,480			95,018
Deferred Tax Liabilities
Reserves, accruals and other	(1,078		)	(1,346		)
Customer relationships	(986		)	(1,294		)
Depreciation	(727		)	—
Deferred tax liability	(2,791		)	(2,640		)
Less: valuation allowance	(1,240		)	(5,368		)
	$	81,449		$	87,010
Recorded in the accompanying consolidated balance sheets as:
Noncurrent deferred tax assets	$	81,449		$	87,010

Schedule of valuation allowance

A summary of the changes in the Company’s valuation allowance is summarized below:

(in thousands)	Amount
Balance, January 1, 2017	$	140,915
Charged to income tax expense (benefit)	2,305
Adoption of ASU 2016-09	2,929
Foreign currency	313
Release valuation allowance	(141,094		)
Balance, December 31, 2017	5,368
Charged to income tax expense (benefit)	(103		)
Foreign currency	(56		)
Release valuation allowance	(3,969		)
Balance, December 31, 2018	$	1,240

Schedule of reconciliation of the Company's changes in uncertain tax positions

A reconciliation of the Company’s changes in uncertain tax positions for 2018 and 2017 is as follows:

(in thousands)	Amount
Balance of uncertain tax positions as of January 1, 2017	$	10,441
Additions related to current year tax positions	—
Reductions related to prior year tax positions	(506		)
Settlements	—
Lapse of statute of limitations	(69		)
Balance of uncertain tax positions as of December 31, 2017	9,866
Additions related to current year tax positions	—
Reductions related to prior year tax positions	(4		)
Settlements	—
Lapse of statute of limitations	(74		)
Balance of uncertain tax positions as of December 31, 2018	$	9,788