INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income before Income Taxes

The components of income before income taxes, equity in earnings and extraordinary item are as follows:

	Year Ended December 31,
	2016			2015			2014
	(in thousands)
Domestic	$	22,114		$	22,096		$	10,251
Foreign		(112	)		(3,765	)		3,611
Total income before income taxes and equity in earnings	$	22,002		$	18,331		$	13,862

Provision for Income Taxes

The provision for income taxes (before equity in earnings) consists of:

	Year Ended December 31,
	2016			2015			2014
				(in thousands)
Current:
Federal	$	8,000		$	5,584		$	4,709
State and local		498			1,879			1,284
Foreign		483			604			1,691
Deferred		(1,951	)		(1,440	)		(1,859	)
Income tax provision	$	7,030		$	6,627		$	5,825

Significant Components of Deferred Income Tax Assets

Significant components of the Company’s deferred income tax assets are as follows:

	December 31,
	2016		2015
	(in thousands)
Deferred income tax assets:
Deferred rent expense	$	3,706	$	4,028
Stock options		4,593		4,179
Inventory		1,190		1,298
Operating loss carry-forward		2,568		2,213
Accounts receivable allowances		463		217
Accrued compensation		944		867
Other		2,784		2,820
Total deferred income tax assets	$	16,248	$	15,622

Significant Components of Net Deferred Income Tax Asset (Liability)

Significant components of the Company’s net deferred income tax asset (liability) are as follows:

	December 31,
	2016			2015
	(in thousands)
Deferred income tax liabilities:
Depreciation and amortization	$	(1,268	)	$	(3,121	)
Intangibles		(9,815	)		(12,380	)
Equity in earnings		24			(154	)
Total deferred income tax liabilities		(11,059	)		(15,655	)
Net deferred income tax asset (liability)		5,189			(33	)
Valuation allowance		(2,396	)		(2,077	)
Net deferred income tax asset (liability)	$	2,793		$	(2,110	)

Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates

The provision for income taxes (before equity in earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows:    

	Year Ended December 31,
	2016			2015			2014
Provision for federal income taxes at the statutory rate		35.0	%		35.0	%		35.0	%
Increases (decreases):
State and local income taxes, net of Federal income tax benefit		3.6			5.3			4.9
Foreign rate differences		(7.9	)		(8.6	)		(2.7	)
Non-deductible expenses		3.4			5.5			6.4
Other		(2.1	)		(1.0	)		(1.6	)
Provision for income taxes		32.0	%		36.2	%		42.0	%

Estimated Values of Gross Uncertain Tax Positions

The estimated values of the Company’s gross uncertain tax positions at December 31, 2016, 2015 and 2014 are liabilities of $109,000, $157,000 and $572,000, respectively, and consist of the following:

	Year Ended December 31,
	2016			2015			2014
	(in thousands)
Balance at January 1	$	(157	)	$	(572	)	$	(351	)
Additions based on tax positions related to the current year		—			(15	)		—
Additions for tax positions of prior years		—			—			(221	)
Settlements		48			430			—
Balance at December 31	$	(109	)	$	(157	)	$	(572	)