Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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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 |
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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) |
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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
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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 |
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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 |
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