INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of income from continuing operations before provision (benefit) for income taxes

Income (loss) from continuing operations before provision (benefit) for income taxes are taxed under the following jurisdictions (dollar amounts in thousands):

Year Ended December 31,	2019		2018
Domestic	$	1,770	$	(10,069)
Foreign	13,872		13,269
Total	$	15,642	$	3,200

Schedule of components of the provision (benefit) for income taxes

Components of the provision (benefit) for income taxes for each of the two years in the period ended December 31, 2019 are as follows (dollar amounts in thousands):

Year Ended December 31,	2019		2018
Current:
Federal	$	(476)	$	(1,823)
State	94		(70)
Foreign	4,816		6,371
Subtotal	4,434		4,478
Deferred:
Federal	3,044		605
State	475		296
Foreign	760		(977)
Subtotal	4,279		(76)
Total provision for income taxes	$	8,713	$	4,402

Schedule of differences between the statutory U.S. federal income tax rate and the provision (benefit) for income taxes, as a percentage of income before provision for income taxes

The provision (benefit) for income taxes, as a percentage of income from continuing operations before provision (benefit) for income taxes, differs from the statutory U.S. federal income tax rate due to the following:

Year Ended December 31,	2019		2018
Statutory U.S. federal income tax rate	21.0	%	21.0	%
State income taxes, net of U.S. federal income tax benefit	2.9		5.5
U.S. tax impact of foreign operations	12.3		102.5
Valuation allowance change	10.3		(13.9)
Unrecognized tax benefits	(3.3)		(58.7)
Permanent foreign items	4.4		28.6
Withholding tax on royalties	4.2		20.0
Stock compensation	7.1		12.7
Tax return to provision differences	(3.7)		11.7
Elimination of provision on intercompany transactions	(0.6)		4.4
Other	1.1		3.8
Effective income tax rate	55.7	%	137.6	%

Schedule of components of U.S. tax impact of foreign operations

Adjustments relating to the U.S. impact of foreign operations increased the effective tax rate by 12.3 percentage points in 2019 and increased the effective tax rate by 102.5 percentage points in 2018. The components of this calculation were:

Components of U.S. tax impact of foreign operations	2019		2018
Foreign tax credits	(6.3)	%	(17.6)	%
Foreign tax rate differentials	3.6		37.3
Foreign withholding taxes	3.9		27.7
Transfer pricing adjustment	4.6		12.1
Impact of GILTI	6.5		43.0
Total	12.3	%	102.5	%

Schedule of significant components of the deferred tax assets (liabilities)

The significant components of the deferred tax assets (liabilities) are as follows (dollar amounts in thousands):

As of December 31,	2019		2018
Inventory	$	1,013	$	1,252
Accrued liabilities	2,511		4,130
Operating lease liabilities	3,639		—
Deferred compensation	273		307
Equity-based compensation	1,127		2,359
Intangibles assets	161		151
Bad debts	92		114
Net operating losses	7,139		7,730
Foreign tax and withholding credits	14,640		13,300
Health insurance accruals	97		145
Other deferred tax assets	2,178		2,438
Valuation allowance	(21,388)		(20,256)
Total deferred tax assets	11,482		11,670
Other deferred tax liabilities	(1,755)		(2,009)
Accelerated depreciation	(3,168)		(2,161)
Right of use assets	(3,315)		—
Total deferred tax liabilities	(8,238)		(4,170)
Total deferred taxes, net	$	3,244	$	7,500

Schedule of components of deferred tax assets (liabilities), net

The components of deferred tax assets (liabilities), net are as follows (dollar amounts in thousands):

As of December 31,	2019		2018
Net deferred tax assets	$	4,899	$	9,056
Net deferred tax liabilities	(1,655)		(1,556)
Total deferred taxes, net	$	3,244	$	7,500

Schedule of reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties, is as follows for the years (dollar amounts in thousands):

Year Ended December 31,	2019		2018
Unrecognized tax benefits, opening balance	$	1,966	$	2,956
Settlement of liability reclassified as income tax payable	—		—
Payments on liability	(16)		—
Tax positions taken in a prior period
Gross increases	—		—
Gross decreases	(9)		(467)
Tax positions taken in the current period
Gross increases	132		92
Gross decreases	—		—
Lapse of applicable statute of limitations	(686)		(591)
Currency translation adjustments	(2)		(24)
Unrecognized tax benefits, ending balance	$	1,385	$	1,966