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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign

For the years ended December 31, 2019, 2018 and 2017, income before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands):

    

2019

    

2018

    

2017

Domestic

$

(37,277)

$

21,084

$

14,531

Foreign

 

39,470

 

28,435

 

21,350

Total

$

2,193

$

49,519

$

35,881

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the years ended December 31, 2019, 2018 and 2017, consisted of the following (in thousands):

    

2019

    

2018

    

2017

Current expense (benefit):

 

  

 

  

 

  

Federal

$

479

$

(1,132)

$

3,849

State

 

662

 

582

 

645

Foreign

 

8,037

 

6,000

 

5,168

Total current expense

 

9,178

 

5,450

 

9,662

Deferred expense (benefit):

 

  

 

  

 

  

Federal

 

(8,111)

 

4,400

 

(314)

State

 

(3,523)

 

(667)

 

(216)

Foreign

 

(802)

 

(1,681)

 

(774)

Total deferred (benefit) expense

 

(12,436)

 

2,052

 

(1,304)

Total income tax expense (benefit)

$

(3,258)

$

7,502

$

8,358

Schedule of Effective Income Tax Rate Reconciliation

The difference between the income tax expense reported and amounts computed by applying the statutory federal rate of 21.0% to pretax income for years ended December 31, 2019 and 2018, and 35% for the year ended December 31, 2017, consisted of the following (in thousands):

    

2019

    

2018

    

2017

Computed federal income tax expense at applicable statutory rate

$

461

$

10,399

$

12,559

State income taxes

 

(2,241)

 

(59)

 

279

Tax credits

 

(1,567)

 

(1,734)

 

(1,377)

Foreign tax rate differential

 

(1,536)

 

(1,361)

 

(3,329)

Uncertain tax positions

 

(794)

 

267

 

(19)

Deferred compensation insurance assets

 

(503)

 

186

 

(479)

Transaction-related expenses

 

154

 

223

 

90

U.S. transition tax

 

 

(3,271)

 

10,612

TCJA remeasurement of deferred taxes

 

 

(71)

 

(8,383)

Stock-based payments

 

(1,654)

 

(4,278)

 

(2,264)

Bargain purchase gain

 

 

 

(1,570)

In-process research and development

 

 

 

1,486

Net GILTI

 

1,861

 

347

 

Foreign withholding tax

 

638

 

5,590

 

Other — including the effect of graduated rates

 

1,923

 

1,264

 

753

Total income tax expense (benefit)

$

(3,258)

$

7,502

$

8,358

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31, 2019 and 2018, consisted of the following temporary differences and carry-forward items (in thousands):

    

2019

    

2018

Deferred income tax assets:

 

  

 

  

Allowance for uncollectible accounts receivable

$

693

$

606

Accrued compensation expense

 

9,244

 

7,414

Inventory differences

 

2,207

 

1,269

Net operating loss carryforwards

 

21,187

 

20,226

Deferred revenue

 

552

 

46

Stock-based compensation expense

 

4,672

 

2,833

Operating lease assets

16,838

Federal R&D Tax Credits

1,376

Other

 

6,189

 

9,243

Total deferred income tax assets

 

62,958

 

41,637

Deferred income tax liabilities:

 

  

 

  

Prepaid expenses

 

(1,128)

 

(1,142)

Property and equipment

 

(21,242)

 

(20,045)

Intangible assets

 

(53,933)

 

(58,883)

Foreign withholding tax

 

(5,240)

 

(5,590)

Operating lease liabilities

(15,847)

Other

 

(2,372)

 

(4,350)

Total deferred income tax liabilities

 

(99,762)

 

(90,010)

Valuation allowance

 

(4,644)

 

(4,989)

Net deferred income tax liabilities

$

(41,448)

$

(53,362)

Reported as:

 

  

 

  

Deferred income tax assets

$

3,788

$

3,001

Deferred income tax liabilities

 

(45,236)

 

(56,363)

Net deferred income tax liabilities

$

(41,448)

$

(53,362)

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits for the years ended December 31, 2019, 2018 and 2017, consisted of the following (in thousands):

    

2019

    

2018

    

2017

Unrecognized tax benefits, opening balance

$

2,947

$

2,749

$

2,549

Gross increases (decreases) in tax positions taken in a prior year

 

(244)

 

35

 

80

Gross increases in tax positions taken in the current year

 

229

 

586

 

403

Lapse of applicable statute of limitations

 

(771)

 

(423)

 

(283)

Unrecognized tax benefits, ending balance

$

2,161

$

2,947

$

2,749