INCOME TAXES

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

8. INCOME TAXES

The Tax Cuts and Jobs Act (TCJA), among other changes, reduced the corporate tax rate from a top rate of 35% to a flat rate of 21%, effective January 1, 2018. At December 31, 2017, because of the implementation of the TCJA, the Company recognized a $1,102 liability in noncurrent taxes payable on its consolidated balance sheets related to the income tax from the deemed repatriation of its cumulative foreign earnings. During the first three months of 2018, the Company gathered additional information which demonstrated that the Company would owe additional amounts related to this tax. Due to the inherent complexity of the calculation for the deemed repatriation tax, the Company followed elective guidance in SEC Staff Accounting Bulletin (SAB) 118, which allows for measurement period adjustments to be reflected in the current reporting period, and expensed an additional $233 for this tax during the first quarter of 2018. However, after further analysis, the Company reduced the expense related to this item by $710 during the three months ended September 30, 2018.

Subsequent to December 31, 2017, the Internal Revenue Service issued additional guidance requiring income tax overpayments to first be applied to the balance of the repatriation tax liability. While the Company made the installment election to pay the deemed repatriation tax over an eight year period on their 2017 income tax filing, based on the guidance issued by the IRS they believe their overpayment will be used to first satisfy the entire deemed repatriation tax in its entirety. Therefore, during the nine months ended September 30, 2018, the Company applied its overpayment to the liability, which reduced the balance to $0 at September 30, 2018. As of September 30, 2018, the Company had no federal operating loss carryforwards. As of September 30, 2018, the Company had a state net operating loss carryforward of $849, which will expire between 2019 and 2025.