INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

	2020		2019		2018
Domestic	$	(17,689)	$	(15,661)	$	28,917
Foreign		17,782		21,733		24,825
Total	$	93	$	6,072	$	53,742

Schedule of reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense

The following is a reconciliation from the tax computed at statutory income tax rates to the Company’s income tax expense for the years ended December 31, 2020, 2019, and 2018 (in thousands):

	2020		2019		2018
Tax computed at statutory US federal income tax rates	$	20	$	1,275	$	11,286
Non-controlling interest		(851)		(648)		(1,114)
Foreign tax rate differential		1,866		(1,769)		(2,662)
Over (under) provided in prior periods		(520)		(244)		(4,683)
Nondeductible expenses		1,504		3,781		1,610
Benefit Attributable CARES Act		(3,064)		—		—
Capitalized transactions costs		—		19		62
Change in tax reserves		2,148		3,883		10,657
State Taxes, net of federal benefit		(409)		(429)		1,674
Change in valuation allowance		33		(35)		1,539
Investment Tax Credit		84		(1,215)		—
Refund Claim for Domestic Production Deduction		—		—		235
Tax Cuts and Jobs Act of 2017		—		—		(148)
Capital loss		—		—		15
Deferred income tax revaluation		(10)		(513)		—
Other, net		—		—		399
Total Income Tax Expense	$	801	$	4,105	$	18,870

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

\
	2020		2019		2018
Current:
United States—Federal	$	504	$	(1,559)	$	24,546
United States—State		3		(336)		4,506
Foreign		7,611		8,192		13,060
Total current income tax expense	$	8,118	$	6,297	$	42,112
Deferred:
United States—Federal	$	(6,527)	$	(1,805)	$	(17,947)
United States—State		(413)		(93)		(2,832)
Foreign		(377)		(294)		(2,463)
Total deferred income tax expense (benefit)	$	(7,317)	$	(2,192)	$	(23,242)
Consolidated:
United States—Federal	$	(6,023)	$	(3,364)	$	6,599
United States—State		(410)		(429)		1,674
Foreign		7,234		7,898		10,597
Total income tax expense (benefit)	$	801	$	4,105	$	18,870

Schedule of significant components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities are as follows as of December 31, 2020 and 2019 (in thousands):

	2020		2019
Deferred tax assets:
Accounts receivable and inventory allowances	$	1,972	$	1,603
Basis in investments		7,512		6,937
Accrued expenses		4,701		5,923
Deferred revenue		3,141		2,864
Employee benefits		4,363		3,559
Other, net		744		—
Net operating losses		26,582		40,491
Tax Credits		1,997		2,726
Operating lease liability		14,648		15,869
Total deferred tax asset		65,660		79,972
Deferred tax liabilities:
Acquired intangible assets, property and equipment		26,736		30,419
Right-of-use asset		14,594		15,869
Prepaid expense		209		181
Other, net		—		195
Total deferred tax liabilities		41,539		46,664
Valuation allowance		(31,014)		(39,406)
Net deferred tax liabilities	$	(6,893)	$	(6,098)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands):

	2020		2019
Deferred tax assets:
Long term	$	3,782	$	2,582
Total deferred tax asset	$	3,782	$	2,582
Deferred tax liabilities:
Long term	$	(10,675)	$	(8,680)
Total deferred tax liabilities	$	(10,675)	$	(8,680)
Net deferred tax liabilities	$	(6,893)	$	(6,098)

Schedule of activity related to unrecognized tax benefits

The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2020 (in thousands):

Gross unrecognized uncertain tax benefits at December 31, 2017		20,961
Increase in unrecognized tax benefits taken during a prior period		7,293
Increase in unrecognized tax benefits taken during the current period		3,408
Lapse in statute of limitations		(1,430)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2018		30,232
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		3,383
Lapse in statute of limitations		(933)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2019	$	32,682
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		2,964
Lapse in statute of limitations		(1,768)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2020	$	33,878