Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of components of income tax expense (benefit)

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



	2020		2019		2018
Current Expense:
Federal	$	17,248	$	1,709	$	31
State	4,196		803		99
	21,444		2,512		130
Deferred Expense (Benefit):
Federal	(2,799)		20,576		(15,955)
State	60		1,746		(4,107)
	(2,739)		22,322		(20,062)
Total Income Tax Expense (Benefit)	$	18,705	$	24,834	$	(19,932)

Schedule of deferred tax assets and liabilities

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



	2020		2019
Deferred Tax Assets:
Bad debts	$	156	$	37
Inventories	2,050		1,632
Accrued warranties	841		599
Accrued compensation	271		843
Accrued settlement	524		—

Net operating loss	506		795
Equity-based compensation	154		—
Other	239		124
Deferred Tax Assets	4,741		4,030
Valuation allowance	(208)		(208)
Deferred Tax Assets, net	4,533		3,822
Deferred Tax Liabilities:
Property, plant, and equipment	(1,043)		(1,093)
Intangible assets	(16,604)		(18,582)
Deferred Tax Liabilities	(17,647)		(19,675)
Deferred Tax Asset (Liability), net	$	(13,114)	$	(15,853)

Schedule of effective income tax rate reconciliation

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



	2020		2019		2018
Income tax rate reconciliation
Income tax expense (benefit) at U.S. statutory rate	$	16,333	$	13,562	$	(16,947)
State income taxes	3,375		2,049		(3,365)
Permanent differences:
Derecognition of tax assets from IRS examination	—		9,284		—
Equity-based compensation	852		168		—
Contingent consideration	5,553		134		49
Credits	(79)		(284)		—
Other nondeductible expenses	437		40		48
Effect of CARES Act	(6,608)		—		—
Foreign income benefit	(1,201)		(155)		—
Change in valuation allowance	—		(45)		253
Other	43		81		30
Total Income Tax Expense (Benefit)	$	18,705	$	24,834	$	(19,932)