Income Taxes (Tables)

(Loss) income before income tax expense (benefit) consists of the following:


	Years ended December 31,
	2019		2018		2017
Domestic	$	(40,963)	$	(1,723)	$	2,468
Foreign	(20,051)		6,281		3,359
(Loss) Income before income taxes	$	(61,014)	$	4,558	$	5,827

The components of the income tax expense (benefit) for income taxes are as follows:


	Years ended December 31,
	2019		2018		2017
Current:
Federal	$	3,215	$	(1,694)	$	18,951
State	400		120		507
Foreign	3,809		1,394		2,072
Current income tax expense (benefit)	7,424		(180)		21,530
Deferred:
Federal	(7,630)		(486)		1,038
State	(1,667)		(153)		(580)
Foreign	3,006		447		(1,645)
Deferred income tax benefit	(6,291)		(192)		(1,187)
Income tax expense (benefit)	$	1,133	$	(372)	$	20,343

Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax expense (benefit) are summarized below:


	Years ended December 31,
	2019		2018		2017
Tax expense at statutory rate	$	(12,812)	$	956	$	1,981
State income taxes, net of federal benefit	(1,564)		(13)		81
Foreign tax rate difference	(1,954)		(1,003)		(2,057)
Research and development credit	(753)		(919)		(1,037)
Change in valuation allowance	8,485		464		678
Equity based compensation	(25)		(390)		33
Manufacturing credit	—		—		(191)
Permanent impact of non-deductible cost	1,550		727		766
Provision to return adjustments & deferred adjustments	356		(654)		777
Impact of the U.S. Tax Cuts and Jobs Act of 2017	—		—		17,340
Change in enacted tax rates	359		58		2,015
Global intangible low-taxed income (“GILTI”)	1,795		402		—
Intangible & goodwill impairment	4,999		—		—
Other	697		—		(43)
Income tax expense (benefit)	$	1,133	$	(372)	$	20,343

The components of our net deferred income tax assets and liabilities are as follows:


	As of December 31,
	2019		2018
Net deferred income tax asset - Non-current
Warranty cost	$	616	$	533
Inventory reserve	4,820		1,559
Unearned service revenue	11,616		6,684
Employee stock options	4,157		4,222
Tax credits	1,207		485
Loss carryforwards	7,481		7,038
Depreciation	345		—
Other, net	1,760		641
Total deferred tax assets	32,002		21,162
Valuation allowance	(10,419)		(1,924)
Total deferred tax assets net of valuation allowance	21,583		19,238
Net deferred income tax liability - Non-current
Depreciation	—		(2,996)
Intangibles & goodwill	(3,174)		(2,261)
Total deferred tax liabilities	(3,174)		(5,257)
Net deferred tax assets	$	18,409	$	13,981

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Years ended December 31,
	2019		2018		2017
Balance at January 1	$	324	$	324	$	324
Additions based on tax positions related to the current year	314		—		—
Additions for tax positions of prior years	1,675		—		—
Lapse of statute of limitations	(389)		—		—
Balance at December 31	$	1,924	$	324	$	324