INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense consists of the following:

	2019		2018		2017
Current:
Federal	$	17,757	$	18,296	$	20,102
Foreign	1,609		4,060		3,015
State	818		3,880		2,790
Deemed Repatriation	—		(970)		1,389
Deferred:
Federal	(3,707)		(3,788)		(1,302)
Foreign	67		(69)		62
State	263		(952)		(384)
Federal Rate Change	—		—		(27,255)
Total income tax provision	$	16,807	$	20,457	$	(1,583)

Schedule of Income Tax Reconciliation

The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 21% for 2019, 21% for 2018 and 35% for 2017 to earnings before income tax expense due to the following:

	2019		2018		2017
Income tax at Federal statutory rate	$	20,260	$	20,796	30,971
State income taxes, net of Federal income taxes	(244)		2,742		708
Federal Rate Change	—		—		(27,255)
Stock Options	(222)		(1,293)		(2,927)
GILTI	2,507		1,027		—
FDII	(1,922)		—		—
Deemed Repatriation	—		(970)		1,389
Patent Box Decree (related to prior years)	(1,948)		—		—
Foreign Tax Credits	(1,125)		(1,136)		—
Domestic production activities deduction	—		—		(2,382)
Other	(499)		(709)		(2,087)
Total income tax provision	$	16,807	$	20,457	$	(1,583)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 were as follows:

	2019		2018
Deferred tax assets:
Inventories	$	1,844	$	1,260
Restricted stock and stock options	4,097		3,567
Lease liabilities	1,456		—
Currency and interest rate swap	442		—
Other	3,935		2,885
Total deferred tax assets	11,774		7,712
Deferred tax liabilities:
Amortization	$	28,589	$	27,080
Depreciation	37,075		23,837
Prepaid expenses	465		—
Right of use assets	1,461		—
Other	584		1,104
Total deferred tax liabilities	68,174		52,021
Valuation allowance	31		—
Net deferred tax liability	$	56,431	$	44,309

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is included in other long-term obligations on the Company’s consolidated balance sheets, is as follows:

	2019		2018		2017
Balance at beginning of period	$	5,709	$	4,781	$	6,637
Increases for tax positions of prior years	431		1,366		393
Decreases for tax positions of prior years	(1,978)		(1,185)		(2,711)
Increases for tax positions related to current year	600		747		462
Balance at end of period	$	4,762	$	5,709	$	4,781

All of Balchem's unrecognized tax benefits, if recognized in future periods, would impact the Company's effective tax rate in such future periods.