INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Before Income Taxes and Components of Income Tax Provision

Income (loss) before income taxes and the components of the income tax provision (benefit) consisted of the following for the years ended December 31, 2020, 2019, and 2018 (in thousands):


	Year Ended December 31,
	2020		2019		2018
Income (loss) from operations before income taxes:
United States	$	9,182	$	4,311	$	(1,940)
Foreign	3,252		(1,786)		(7,463)
Total income (loss) from operations before income taxes	$	12,434	$	2,525	$	(9,403)
Provision for (Benefit from) income taxes:
Current tax expense (benefit):
Federal	$	—	$	(4)	$	(1)
State	133		58		59
Foreign benefit of net operating losses	(883)		(462)		(206)
Other foreign	1,295		1,632		1,372
Total current tax expense	545		1,224		1,224
Deferred tax (benefit) expense:

Federal	—		—		—
Other foreign	827		(6,300)		47
Total deferred tax (benefit) expense	827		(6,300)		47
Total provision for (benefit from) income taxes	$	1,372	$	(5,076)	$	1,271

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2020 and 2019 (in thousands):


	December 31,
	2020		2019
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	254,745	$	267,049
Allowances for bad debts	47		69
Difference in accounting for:
Revenues	6,659		2,651
Costs and expenses	23,217		19,400
Inventories	1,466		2,282
Acquired intangible assets	62		187

Long-term lease liabilities	7,432		7,605
Gross deferred tax assets	293,628		299,243
Valuation allowance	(278,785)		(281,568)
Deferred tax assets after valuation allowance	14,843		17,675
Deferred tax liabilities:
Difference in accounting for:
Revenues	—		(1,052)
Costs and expenses	(626)		(1,527)
Inventories	(92)		—
Basis difference convertible notes	—		(326)
Right of use asset	(7,324)		(7,291)
Gross deferred tax liabilities	(8,042)		(10,196)
Net deferred tax assets	$	6,801	$	7,479
Recorded as:

Deferred tax assets, net	6,801		7,479

Deferred tax liabilities, net	—		—
Net deferred tax assets	$	6,801	$	7,479

Reconciliation of Income Tax Provision to Statutory Rate

The following table sets forth a reconciliation of our income tax provision (benefit) to the statutory U.S. federal tax amount for the years ended December 31, 2020, 2019, and 2018:


	Year Ended December 31,
	2020		2019		2018
Statutory tax	$	2,611	$	530	$	(1,975)
Tax credits utilized and expired	1,356		815		1,277
Foreign operations	981		921		1,854
Change in uncertain tax positions	(474)		11,185		58
Non-deductible expenses and other	425		2,474		301


Change in valuation allowance	(3,527)		(21,001)		(244)
Provision for (benefit from) income taxes	$	1,372	$	(5,076)	$	1,271

Reconciliation of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019, and 2018 (in thousands):


Unrecognized tax benefits at January 1, 2018	$	1,841
Decreases for tax positions taken during a prior period	(78)
Unrecognized tax benefits at December 31, 2018	1,763
Increases for tax positions taken during a prior period	11,248
Unrecognized tax benefits at December 31, 2019	13,011
Decreases for tax positions taken during a prior period	(818)
Unrecognized tax benefits at December 31, 2020	$	12,193