Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Taxes  
Schedule of domestic and foreign components of net income before income tax expense

The domestic and foreign components of net income before income tax expense consists of the following for the periods shown below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

December 31,

 

 

    

2018

    

2017

    

2016

 

Income before income taxes:

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

20,553

 

$

10,848

 

$

5,619

 

Foreign

 

 

296

 

 

3,039

 

 

(2,121)

 

Total income before income taxes

 

$

20,849

 

$

13,887

 

$

3,498

 

 

Schedule of components of provision for income taxes

The provision for income taxes consisted of the following components (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

December 31,

 

 

    

2018

    

2017

    

2016

 

Current:

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(687)

 

$

(511)

 

$

400

 

State

 

 

77

 

 

121

 

 

232

 

Foreign

 

 

308

 

 

490

 

 

522

 

Total current tax expense

 

 

(302)

 

 

100

 

 

1,154

 

Deferred:

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

Federal

 

 

1,817

 

 

6,322

 

 

1,313

 

State

 

 

669

 

 

(1,136)

 

 

(458)

 

Foreign

 

 

(219)

 

 

896

 

 

(1,068)

 

Valuation allowance

 

 

(24,956)

 

 

(7,750)

 

 

(9,741)

 

Total deferred tax benefit

 

 

(22,689)

 

 

(1,668)

 

 

(9,954)

 

Total income tax benefit

 

$

(22,991)

 

$

(1,568)

 

$

(8,800)

 

 

Schedule of reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

December 31,

 

 

    

2018

    

2017

    

2016

 

Federal income tax rate

 

21.0

%  

34.0

%  

35.0

%  

State taxes, net of federal benefit

 

(20.1)

 

(1.8)

 

(21.9)

 

Stock-based compensation

 

(27.0)

 

(56.6)

 

26.0

 

162(m) deductible compensation limitation

 

5.1

 

 —

 

 —

 

Research and development credits

 

(1.4)

 

(2.5)

 

(1.1)

 

Change in valuation allowance

 

(95.5)

 

(58.9)

 

(294.6)

 

Non-deductible acquisition costs

 

0.2

 

0.3

 

4.0

 

Return to provision adjustments

 

2.9

 

(2.1)

 

(6.5)

 

Permanent items

 

3.8

 

4.2

 

3.3

 

Capital loss write-off

 

 -

 

5.4

 

 -

 

Deferred tax rate changes - US income tax reform

 

 -

 

67.3

 

 -

 

Differences in foreign tax rates

 

0.3

 

(1.8)

 

(0.6)

 

Other, net

 

0.4

 

1.2

 

4.8

 

Effective income tax rate

 

(110.3)

%  

(11.3)

%  

(251.6)

%  

 

Schedule of deferred tax assets and (liabilities)

Deferred tax assets and (liabilities) are comprised of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2018

    

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

Reserves and accruals

 

$

2,757

 

$

3,443

 

Inventories

 

 

1,095

 

 

1,906

 

Net operating loss carryforwards

 

 

14,621

 

 

17,354

 

Property, plant and equipment

 

 

1,491

 

 

1,073

 

Stock-based compensation

 

 

1,853

 

 

2,283

 

Research and development credit carryforwards

 

 

5,300

 

 

5,435

 

Other

 

 

111

 

 

 —

 

Total deferred tax assets

 

 

27,228

 

 

31,494

 

Valuation allowance

 

 

(354)

 

 

(25,346)

 

Total deferred tax assets

 

 

26,874

 

 

6,148

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Undistributed earnings of foreign subsidiaries

 

 

 —

 

 

(190)

 

Intangible assets

 

 

(3,776)

 

 

(5,493)

 

Other

 

 

 —

 

 

(1)

 

Total deferred tax liabilities

 

 

(3,776)

 

 

(5,684)

 

Net deferred tax asset

 

$

23,098

 

$

464

 

 

Schedule of net operating loss and tax credit carryforwards

Net operating loss and tax credit carryforwards as of December 31, 2018 are as follows (in thousands):

 

 

 

 

 

 

 

 

    

Amount

    

Expiration Years

 

Net operating losses, federal

 

$

57,054

 

2026 - 2037

 

Net operating losses, state

 

 

61,087

 

2020 - 2037

 

Tax credit carryforwards, federal

 

 

6,449

 

2023 -2034

 

Tax credit carryforwards, state

 

 

2,788

 

2019 - 2028

 

Net operating losses, foreign

 

 

535

 

None

 

 

Schedule of reconciliation of the changes in the gross balance of unrecognized tax benefits, excluding interest and penalties

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits, excluding interest and penalties (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

December 31,

 

 

    

2018

    

2017

    

2016

 

Balance at the beginning of the period

 

$

3,583

 

$

3,583

 

$

3,583

 

Current year additions

 

 

 —

 

 

 —

 

 

 —

 

Balance at the end of the period

 

$

3,583

 

$

3,583

 

$

3,583