Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Components of Income Before Provision for Income Taxes

The components of the Company’s income before provision for income taxes are as follows:

 

 

 

Years ended December 31,

 

(amounts in thousands)

 

2019

 

 

2018

 

 

2017

 

United States

 

$

22,553

 

 

$

40,245

 

 

$

29,121

 

Foreign

 

 

1,719

 

 

 

210

 

 

 

535

 

Income before provision for income taxes

 

$

24,272

 

 

$

40,455

 

 

$

29,656

 

Components of Provisions for Income Taxes

The provision for income taxes consists of the following:

 

 

 

Years ended December 31,

 

(amounts in thousands)

 

2019

 

 

2018

 

 

2017

 

Current tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(330

)

 

$

 

 

$

245

 

State

 

 

136

 

 

 

(40

)

 

 

240

 

Foreign

 

 

560

 

 

 

171

 

 

 

206

 

Total current tax expense

 

 

366

 

 

 

131

 

 

 

691

 

Deferred tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

3,497

 

 

 

(9,774

)

 

 

8,709

 

State

 

 

(396

)

 

 

(1,630

)

 

 

92

 

Foreign

 

 

(145

)

 

 

(117

)

 

 

(71

)

Total deferred tax expense (benefit)

 

 

2,956

 

 

 

(11,521

)

 

 

8,730

 

Tax benefit for change in valuation allowance

 

 

 

 

 

 

 

 

(767

)

Total deferred tax expense (benefit), net

 

 

2,956

 

 

 

(11,521

)

 

 

7,963

 

Income tax expense (benefit)

 

$

3,322

 

 

$

(11,390

)

 

$

8,654

 

Components of Deferred Tax Assets and Liabilities

 

The components of deferred tax assets and liabilities consist of the following:

 

(amounts in thousands)

 

As of December 31,

 

Deferred tax assets (liabilities)

 

2019

 

 

2018

 

Accrued expenses

 

$

7,981

 

 

$

8,033

 

Net operating loss and credit carryforward

 

 

20,087

 

 

 

19,805

 

Allowance, reserves and other

 

 

1,984

 

 

 

3,490

 

Stock-based compensation

 

 

3,257

 

 

 

3,253

 

Lease liability

 

 

1,627

 

 

 

 

Deferred tax assets

 

 

34,936

 

 

 

34,581

 

Property, plant, and equipment

 

 

(2,961

)

 

 

(4,683

)

Intangible amortization

 

 

(16,192

)

 

 

 

Right-of-use asset

 

 

(1,418

)

 

 

 

Deferred tax liabilities

 

 

(20,571

)

 

 

(4,683

)

Total

 

$

14,365

 

 

$

29,898

 

Reconciliation of the Federal Statutory Income Tax Rate to the Effective Income Tax Rate

Reconciliation of the federal statutory income tax rate to the effective income tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows:

 

 

 

Years ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

U.S. Statutory rate

 

 

21.00

%

 

 

21.00

%

 

 

34.00

%

State income taxes, net of federal benefit

 

 

3.70

 

 

 

(3.73

)

 

 

0.37

 

Stock-based compensation

 

 

(0.81

)

 

 

(45.01

)

 

 

(30.40

)

Change in valuation allowance

 

 

 

 

 

 

 

 

(2.59

)

R&D credit, net of reserve

 

 

(8.97

)

 

 

(1.39

)

 

 

(1.43

)

Expiration of net operating losses

 

 

 

 

 

 

 

 

2.76

 

Effect of U.S tax law change

 

 

 

 

 

 

 

 

25.55

 

Other

 

 

(1.24

)

 

 

0.98

 

 

 

0.92

 

Effective income tax rate

 

 

13.68

%

 

(28.15)%

 

 

 

29.18

%

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

 

(amounts in thousands)

 

December 31,

 

Reconciliation of liability for unrecognized tax benefits

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

1,294

 

 

$

1,062

 

 

$

934

 

Additions based on tax positions related to current year

 

 

595

 

 

 

232

 

 

 

128

 

Balance at end of period

 

$

1,889

 

 

$

1,294

 

 

$

1,062