INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense consists of the following:

	2020		2019		2018
Current:
Federal	$	19,249	$	17,757	$	18,296
Foreign	3,399		1,609		4,060
State	3,590		818		3,880
Deemed Repatriation	—		—		(970)
Deferred:
Federal	(3,017)		(3,707)		(3,788)
Foreign	167		67		(69)
State	(1,594)		263		(952)
Total income tax provision	$	21,794	$	16,807	$	20,457

Schedule of Income Tax Reconciliation

The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 21% for 2020, 2019, and 2018 to earnings before income tax expense due to the following:

	2020		2019		2018
Income tax at Federal statutory rate	$	22,348	$	20,260	$	20,796
State income taxes, net of Federal income taxes	2,288		(244)		2,742
Stock Options	(1,529)		(222)		(1,293)
GILTI	—		2,507		1,027
FDII	(1,400)		(1,922)		—
Deemed Repatriation	—		—		(970)
Patent Box Decree (related to prior years)	—		(1,948)		—
Foreign Tax Credits	—		(1,125)		(1,136)
Other	87		(499)		(709)
Total income tax provision	$	21,794	$	16,807	$	20,457

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, 2020 and 2019 were as follows:

	2020		2019
Deferred tax assets:
Inventories	$	1,470	$	1,844
Restricted stock and stock options	3,862		4,097
Lease liabilities	1,641		1,456
Currency and interest rate swap	2,831		442
Other	3,308		3,935
Total deferred tax assets	13,112		11,774
Deferred tax liabilities:
Amortization	$	32,872	$	28,589
Depreciation	27,897		37,075
Prepaid expenses	915		465
Right of use assets	1,926		1,461
Other	731		584
Total deferred tax liabilities	64,341		68,174
Valuation allowance	130		31
Net deferred tax liability	$	51,359	$	56,431

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:

	2020		2019		2018
Balance at beginning of period	$	4,762	$	5,709	$	4,781
Increases for tax positions of prior years	267		431		1,366
Decreases for tax positions of prior years	(391)		(1,978)		(1,185)
Increases for tax positions related to current year	697		600		747
Balance at end of period	$	5,335	$	4,762	$	5,709

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