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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign

For the years ended December 31, 2021, 2020 and 2019, income (loss) before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands):

    

2021

    

2020

    

2019

Domestic

$

21,328

$

(32,216)

$

(37,277)

Foreign

 

32,589

 

18,985

 

39,470

Total

$

53,917

$

(13,231)

$

2,193

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the years ended December 31, 2021, 2020 and 2019, consisted of the following (in thousands):

    

2021

    

2020

    

2019

Current expense (benefit):

 

  

 

  

 

  

Federal

$

808

$

(937)

$

479

State

 

806

 

437

 

662

Foreign

 

8,480

 

8,407

 

8,037

Total current expense (benefit)

 

10,094

 

7,907

 

9,178

Deferred expense (benefit):

 

  

 

  

 

  

Federal

 

(468)

 

(2,688)

 

(8,111)

State

 

(1,845)

 

(4,524)

 

(3,523)

Foreign

 

(2,318)

 

(4,083)

 

(802)

Total deferred expense (benefit)

 

(4,631)

 

(11,295)

 

(12,436)

Total income tax expense (benefit)

$

5,463

$

(3,388)

$

(3,258)

Schedule of Effective Income Tax Rate Reconciliation

The difference between the income tax expense (benefit) reported and amounts computed by applying the statutory federal rate of 21.0% to pretax income (loss) for the years ended December 31, 2021, 2020 and 2019, consisted of the following (in thousands):

    

2021

    

2020 (1)

    

2019 (1)

Computed federal income tax expense (benefit) at applicable statutory rate of 21%

$

11,323

$

(2,778)

$

461

State income tax benefit

 

(283)

 

(1,448)

 

(2,241)

Tax credits

 

(2,507)

 

(2,391)

 

(1,064)

Tax effect of international items

 

(281)

 

4,705

 

1,325

Uncertain tax positions

 

401

 

(455)

 

(574)

Deferred compensation insurance assets

 

(413)

 

(290)

 

(493)

Stock-based compensation

 

(5,571)

 

(1,822)

 

(1,659)

Valuation allowance

1,257

DOJ settlement

1,890

Remeasurement of state deferred taxes

(526)

(1,765)

Non-deductible expenses

2,455

1,077

1,320

Remeasurement of contingent consideration liabilities

733

(1,185)

(87)

Other — including the effect of graduated rates

 

132

 

(183)

 

(246)

Total income tax expense (benefit)

$

5,463

$

(3,388)

$

(3,258)

(1) Amounts for the years ended December 31, 2020 and 2019 in the table above have been updated for presentation and comparative purposes

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31, 2021 and 2020, consisted of the following temporary differences and carry-forward items (in thousands):

    

2021

    

2020 (1)

Deferred income tax assets:

 

  

 

  

Allowance for credit losses on trade receivables

$

1,494

$

1,198

Accrued compensation expense

 

11,063

 

9,694

Inventory differences

 

4,887

 

3,161

Net operating loss carryforwards

 

14,833

 

18,622

Stock-based compensation expense

 

6,388

 

7,360

Operating lease assets

13,431

15,182

Federal R&D tax credit

5,003

3,607

UT R&D Credit

4,126

3,484

Other

 

9,939

 

11,126

Total deferred income tax assets

 

71,164

 

73,434

Deferred income tax liabilities:

 

  

 

  

Prepaid expenses

 

(1,047)

 

(1,078)

Property and equipment

 

(20,797)

 

(20,671)

Intangible assets

 

(42,888)

 

(47,178)

Foreign withholding tax

 

(5,575)

 

(5,358)

Operating lease liabilities

(11,938)

(13,855)

Other

 

(3,556)

 

(3,796)

Total deferred income tax liabilities

 

(85,801)

 

(91,936)

Valuation allowance

 

(10,786)

 

(10,213)

Net deferred income tax liabilities

$

(25,423)

$

(28,715)

Reported as:

 

  

 

  

Deferred income tax assets

$

6,080

$

4,597

Deferred income tax liabilities

 

(31,503)

 

(33,312)

Net deferred income tax liabilities

$

(25,423)

$

(28,715)

(1)Amounts for the year ended December 31, 2020 in the table above have been updated for presentation and comparative purposes
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, 2021, 2020 and 2019, consisted of the following (in thousands):

    

2021

    

2020

    

2019

Unrecognized tax benefits, opening balance

$

1,674

$

2,161

$

2,947

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

 

82

 

115

 

(244)

Gross increases in tax positions taken in the current year

 

316

 

283

 

229

Lapse of applicable statute of limitations

 

(437)

 

(885)

 

(771)

Unrecognized tax benefits, ending balance

$

1,635

$

1,674

$

2,161