Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes The provision for (benefit from) income taxes at December 31 consists of the following:
(In thousands) 2021 2020 2019
Current
U.S. Federal $ (1,713) $ (8,679) $ 23,798 
State (667) (4,539) 4,471 
Foreign 1,439  1,036  2,402 
Current (941) (12,182) 30,671 
Deferred
U.S. Federal (237) 17,044  (16,250)
State (87) (92) 727 
Foreign (117) (1,399) 1,138 
Deferred (441) 15,553  (14,385)
Total $ (1,382) $ 3,371  $ 16,286 
Effective Tax Rates Differ From Statutory Federal Income Tax Rate The effective tax rates differ from the statutory federal income tax rate as follows:
2021 2020 2019
Statutory Federal Income Tax Rate 21.0  % 21.0  % 21.0  %
Permanent Items
Stock Compensation Expense (2.1) % (0.3) % (0.5) %
Non Deductible Goodwill Impairment —  % (10.2) % —  %
Contingent Consideration Liability Fair Value Adjustment 1.7  % —  % —  %
Other (0.7) % —  % 0.5  %
Foreign Tax Rate Differential (2.7) % (1.0) % 1.4  %
State Income Tax, Net of Federal Income Tax Effect 2.2  % 3.3  % 6.0  %
Research and Development Tax Credits 12.8  % 2.2  % (4.6) %
Change in Valuation Allowance (29.8) % (19.2) % 1.1  %
Net GILTI and FDII Tax Benefit —  % —  % (1.2) %
Foreign Tax Credit for Dividend Withholding 1.7  % —  % —  %
Tax Rate Change on 2020 Federal Net Operating Loss Carryback 0.9  % 1.3  % —  %
Other 0.1  % (0.1) % 0.1  %
Effective Tax Rate 5.1  % (3.0) % 23.8  %
Significant Components of Company's Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, are as follows:
(In thousands) 2021 2020
Deferred Tax Assets:
Asset Reserves $ 17,462  $ 18,189 
Deferred Compensation 7,424  7,564 
Section 163(j) - Interest Expense Limitation 891  — 
State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax 4,674  866 
Customer Advanced Payments and Deferred Revenue 1,301  2,216 
Net Operating Loss Carryforwards and Other 15,617  11,244 
Goodwill and Intangible Assets 1,082  2,069 
ASC 606 Revenue Recognition 1,817  2,311 
Lease Liabilities 4,178  5,545 
Other 5,540  2,300 
Total Gross Deferred Tax Assets 59,986  52,304 
Valuation Allowance for Federal and State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax (43,519) (37,168)
Deferred Tax Assets 16,467  15,136 
Deferred Tax Liabilities:
Depreciation 9,393  10,166 
ASC 606 Revenue Recognition - Section 481(a) Adjustment 1,030  928 
Lease Assets 3,539  4,506 
Earnout Income Accrual 2,603  — 
Other 1,050  1,186 
Deferred Tax Liabilities 17,615  16,786 
Net Deferred Tax Liabilities $ (1,148) $ (1,650)
Components of Net Deferred Tax Assets and Liabilities The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:
(In thousands) 2021 2020
Other Assets — Long-term $ 273  $ 1,259 
Deferred Tax Liabilities — Long-term (1,421) (2,909)
Net Deferred Tax Liabilities $ (1,148) $ (1,650)
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties that, if recognized, would impact the effective tax rate, is as follows:
(in thousands) 2021 2020 2019
Balance at Beginning of the Year $ 1,890  $ 2,565  $ 2,197 
Decreases as a Result of Tax Positions Taken in Prior Years (478) (775) — 
Increases as a Result of Tax Positions Taken in the Current Year —  100  368 
Balance at End of the Year $ 1,412  $ 1,890  $ 2,565