INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Domestic and Foreign Components of Income Before Tax for Operations

The domestic and foreign components of income (loss) before taxes for our operations consist of the following for the years ended December 31:


	2020		2019		2018
Domestic	$	(7,103)	$	33,837	$	9,399
Foreign	5,143		22,865		25,208
Total (loss) income before income taxes	$	(1,960)	$	56,702	$	34,607

Schedule of Components of the Provision for Income Taxes

The components of the (benefit) provision for income taxes consist of the following for the years ended December 31:


	2020		2019		2018
Current – Federal	$	162	$	4,543	$	444
Current – State	196		557		371
Current – Foreign	1,407		13,272		6,972
Current income tax expense	1,765		18,372		7,787

Deferred – Federal	(1,997)		1,770		98
Deferred – State	156		(290)		—
Deferred -– Foreign	(472)		2,809		(3,751)
Deferred income tax (benefit) expense	(2,313)		4,289		(3,653)
Income tax (benefit) provision	$	(548)	$	22,661	$	4,134

Schedule of Deferred Tax Assets and Liabilities

Our deferred tax assets and liabilities consist of the following at December 31:


	2020		2019
Deferred tax assets:
Net operating loss carryforward	$	8,715	$	9,138
Inventory differences	644		721
Equity compensation	1,357		1,203
Investment in subsidiaries	—		2,300
Restructuring	103		7
Purchased goodwill	1,308		1,807
Accrued employee compensation and benefits	3,562		2,945
Lease liabilities	2,792		2,259
Other, net	753		134
Gross deferred tax assets	19,234		20,514
Less valuation allowances	(8,566)		(9,680)
Total deferred tax assets	10,668		10,834

Deferred tax liabilities:
Purchased intangible assets and goodwill	(373)		(987)
Depreciation and amortization	(4,878)		(7,366)
Right of use assets	(2,550)		(1,997)
Other, net	(539)		(434)
Total deferred tax liabilities	(8,340)		(10,784)

Net deferred tax assets	$	2,328	$	50

Schedule of Reconciliation of Income Tax Provision

A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 21% to income before taxes is as follows for the years ended December 31:


	2020		2019		2018
Statutory U.S. federal income tax	$	(412)	$	11,907	$	7,268
U.S. state income tax, net of federal benefit	(24)		492		430
U.S. TCJA - net impact	—		—		(604)
Foreign rate differential	1,223		4,257		3,054

Tax audit adjustments	—		—		(11)

Equity compensation	(715)		(1,469)		(156)
Deemed repatriation of foreign earnings	—		187		281
German legal entity structuring	1,161		—		—




Non-deductible penalties	—		—		1,686
DynaEnergetics Siberia shut down	324		6,193		—
Other	(460)		561		1,046
Change in valuation allowances	(1,645)		533		(8,860)

Income tax (benefit) provision	$	(548)	$	22,661	$	4,134