Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
Income Tax Disclosure [Abstract] |
|
Components of Income Before Provision for Income Taxes |
The components of the Company’s income before provision for income taxes are as follows:
|
|
Years ended December 31, |
|
(amounts in thousands) |
|
2018 |
|
|
2017 |
|
|
2016 |
|
United States |
|
$ |
40,245 |
|
|
$ |
29,121 |
|
|
$ |
22,725 |
|
Foreign |
|
|
210 |
|
|
|
535 |
|
|
|
— |
|
Income before provision for income taxes |
|
$ |
40,455 |
|
|
$ |
29,656 |
|
|
$ |
22,725 |
|
|
Components of Provisions for Income Taxes |
The provision for income taxes consists of the following:
|
|
Years ended December 31, |
|
(amounts in thousands) |
|
2018 |
|
|
2017 |
|
|
2016 |
|
Current tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
245 |
|
|
$ |
451 |
|
State |
|
|
(40 |
) |
|
|
240 |
|
|
|
776 |
|
Foreign |
|
|
171 |
|
|
|
206 |
|
|
|
— |
|
Total current tax expense |
|
|
131 |
|
|
|
691 |
|
|
|
1,227 |
|
Deferred tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
(9,774 |
) |
|
|
8,709 |
|
|
|
1,357 |
|
State |
|
|
(1,630 |
) |
|
|
92 |
|
|
|
590 |
|
Foreign |
|
|
(117 |
) |
|
|
(71 |
) |
|
|
— |
|
Total deferred tax expense (benefit) |
|
|
(11,521 |
) |
|
|
8,730 |
|
|
|
1,947 |
|
Tax benefit for change in valuation allowance |
|
|
— |
|
|
|
(767 |
) |
|
|
(968 |
) |
Total deferred tax expense (benefit), net |
|
|
(11,521 |
) |
|
|
7,963 |
|
|
|
979 |
|
Income tax expense (benefit) |
|
$ |
(11,390 |
) |
|
$ |
8,654 |
|
|
$ |
2,206 |
|
|
Components of Deferred Tax Assets and Liabilities |
The components of deferred tax assets and liabilities consist of the following:
|
|
As of December 31, |
|
(amounts in thousands) |
|
2018 |
|
|
2017 |
|
Deferred tax assets (liabilities) |
|
|
|
|
|
|
|
|
Accrued expenses |
|
$ |
8,033 |
|
|
$ |
5,669 |
|
Net operating loss and credit carryforward |
|
|
19,805 |
|
|
|
10,378 |
|
Allowance, reserves and other |
|
|
3,490 |
|
|
|
3,301 |
|
Stock-based compensation |
|
|
3,253 |
|
|
|
2,598 |
|
Deferred tax assets |
|
|
34,581 |
|
|
|
21,946 |
|
Property, plant, and equipment |
|
|
(4,683 |
) |
|
|
(3,658 |
) |
Total |
|
$ |
29,898 |
|
|
$ |
18,288 |
|
|
Reconciliation of the Federal Statutory Income Tax Rate to the Effective Income Tax Rate |
Reconciliation of the federal statutory income tax rate to the effective income tax rate for the last three years is as follows:
|
|
Years ended December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
U.S. Statutory rate |
|
|
21.00 |
% |
|
|
34.00 |
% |
|
|
34.00 |
% |
State income taxes, net of federal benefit |
|
|
(3.73 |
) |
|
|
0.37 |
|
|
|
0.88 |
|
Stock-based compensation |
|
|
(45.01 |
) |
|
|
(30.40 |
) |
|
|
(23.74 |
) |
Change in valuation allowance |
|
|
— |
|
|
|
(2.59 |
) |
|
|
(4.26 |
) |
R&D credit, net of reserve |
|
|
(1.39 |
) |
|
|
(1.43 |
) |
|
|
(1.75 |
) |
Expiration of net operating losses |
|
|
— |
|
|
|
2.76 |
|
|
|
4.51 |
|
Effect of U.S tax law change |
|
|
— |
|
|
|
25.55 |
|
|
|
— |
|
Other |
|
|
0.98 |
|
|
|
0.92 |
|
|
|
0.07 |
|
Effective income tax rate |
|
(28.15)% |
|
|
|
29.18 |
% |
|
|
9.71 |
% |
|
Summary of Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:
|
|
December 31, |
|
(amounts in thousands) |
|
2018 |
|
|
2017 |
|
|
2016 |
|
Reconciliation of liability for unrecognized tax benefits |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
1,062 |
|
|
$ |
934 |
|
|
$ |
773 |
|
Additions based on tax positions related to current year |
|
|
232 |
|
|
|
128 |
|
|
|
161 |
|
Balance at end of period |
|
$ |
1,294 |
|
|
$ |
1,062 |
|
|
$ |
934 |
|
|