Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

ncome (loss) from continuing operations before income taxes was as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
U.S.	$	68,555	$	(102,004)	$	19,109
Non-U.S.	4,180		172		1,892
Income (loss) from continuing operations before income taxes	$	72,735	$	(101,832)	$	21,001

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) from continuing operations was as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Current:
U.S. federal	$	9,465	$	164	$	1,750
U.S. state	3,834		419		477
Non-U.S.	1,065		453		435
Total current	14,364		1,036		2,662
Deferred:
U.S. federal	(517)		(9,431)		2,235
U.S. state	(1,629)		(540)		1,059
Non-U.S.	(20)		(602)		(65)
Total deferred	(2,166)		(10,573)		3,229
Income tax expense (benefit)	$	12,198	$	(9,537)	$	5,891

Schedule of Effective Income Tax Rate Reconciliation

Following is a reconciliation of the U.S. statutory federal income tax rate with our effective income tax rate for continuing operations:

	Year Ended December 31,
	2020		2019		2018
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%
State tax, net of U.S. federal tax benefit	3.8		3.8		5.7
Non-U.S. income taxes	0.4		—		0.1
Nondeductible operating expenses	0.2		(0.4)		3.1
Research and development credit	(1.0)		0.5		(3.1)
Change in deferred tax measurement rate	(5.5)		(0.1)		0.1
Change in uncertain tax positions	0.2		0.1		0.8
Excess tax benefits from stock plans	(1.5)		(0.2)		(0.7)
Change in valuation allowance	34.3		(1.5)		1.8
Impairment of intangibles	—		(13.6)		—
Capital losses	(34.8)		—		—
Other	(0.3)		(0.2)		(0.7)
Effective income tax rate	16.8	%	9.4	%	28.1	%

Schedule of Deferred Tax Assets and Liabilities

Individually significant components of deferred income tax assets and liabilities were as follows (in thousands):

	As of December 31,
	2020		2019
Deferred income tax assets:
Accrued liabilities	$	4,113	$	2,152
Allowance for doubtful accounts	83		10
Inventory valuation	260		509
Capitalized indirect inventory costs	649		299
Stock-based compensation expense	978		548
Deferred rent	5,408		5,548
Net operating loss carryforward	1,427		7,580
Basis difference on long-lived assets	1,216		1,228
Credit carryforward	276		1,221
Capital losses	26,126		—
Other	105		426
Gross deferred income tax assets	40,641		19,521
Valuation allowance	(26,985)		(2,743)
Deferred income tax assets, net of valuation allowance	13,656		16,778
Deferred income tax liabilities:
Prepaid advertising	(134)		(320)
Other prepaids	(923)		(858)
Basis difference of long-lived assets	(5,275)		(11,628)
Deferred rent	(4,867)		(5,070)
Other	(31)		(55)
Deferred income tax liabilities	(11,230)		(17,931)
Net deferred income tax assets (liabilities)	$	2,426	$	(1,153)

Our net deferred income tax assets (liabilities) were recorded on our consolidated balance sheets as follows (in thousands):

	As of December 31,
	2020		2019
Deferred income tax assets, non-current	$	2,426	$	630
Deferred income tax liabilities, non-current	—		(1,783)
Net deferred income tax assets (liabilities)	$	2,426	$	(1,153)

Summary of Income Tax Carryforwards

As of December 31, 2020, we had the following income tax carryforwards (in millions):

	Amount		Expires in
Net operating loss carryforwards
U.S. state	$	19.0	2021 - 2039
Capital loss carryforwards
U.S federal and state	$	103.9	2025
Income tax credit carryforwards
U.S. state	$	0.4	2021 - 2022

Schedule of Reconciliatin of Gross Unrecognized Tax Benefits From Uncertain Tax Positions Roll Forward

Following is a reconciliation of gross unrecognized tax benefits from uncertain tax positions, excluding the impact of penalties and interest (in thousands):

	2020		2019		2018
Balance, January 1	$	2,338	$	2,330	$	2,194
Additions for tax positions taken in prior years	4		44		41
Reductions for tax positions taken in prior years	—		(81)		(4)
Additions for tax positions related to the current year	109		87		116
Lapses of statutes of limitations	(20)		(42)		(12)
Other	(108)		—		(5)
Balance, December 31	$	2,323	$	2,338	$	2,330