Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of provision for income taxes charged to operations

The provision for income taxes charged to operations consists of the following for the years ended December 31, (in thousands):


	2018			2019
Current Expense:
Federal	$	31		$	1,709
State		99			803

		130			2,512
Deferred Expense (Benefit):
Federal		(15,955	)		20,576
State		(4,107	)		1,746

		(20,062	)		22,322

Total Income Tax Expense (Benefit)	$	(19,932	)	$	24,834

Schedule of significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, (in thousands):


	2018			2019
Deferred Tax Assets:
Bad debts	$	1,817		$	37
Inventories		1,116			1,632
Accrued warranties		447			599
Accrued compensation		613			843
Contingent Consideration - TRA		4,654			—
Net operating loss		11,169			795
Disallowed interest		4,345			—
Other		589			124

Deferred Tax Assets		24,750			4,030
Valuation allowance		(253	)		(208	)

Deferred Tax Assets, net		24,497			3,822

Deferred Tax Liabilities:
Property, plant, and equipment		(1,217	)		(1,093	)
Intangible assets		(16,811	)		(18,582	)

Deferred Tax Liabilities		(18,028	)		(19,675	)

Deferred Tax Asset (Liability), net	$	6,469		$	(15,853	)

Summary of reconciliation of income tax expense (benefit)

A reconciliation of income tax expense (benefit) computed at the federal statutory rate of 21% for the years ended December 31, 2018 and 2019 to actual income tax expense at the Company’s effective rate is as follows (in thousands):


	2018			2019
Income tax expense (benefit) at federal statutory rate	$	(16,947	)	$	13,562
State income taxes		(3,365	)		2,049
Permanent differences:
Derecognition of tax assets from IRS examination		—			9,284
Equity based compensation		—			168
Contingent consideration		49			134
Credits		—			(284	)
Other nondeductible expenses		48			40
Foreign income benefit		—			(155	)
Change in valuation allowance		253			(45	)
Other		30			81

Total Income Tax Expense (Benefit)	$	(19,932	)	$	24,834