Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Net Income from Continuing Operations Before Income Taxes

Income Tax Provision. The components of net income before income taxes are as follows (in thousands):

	2021			2020		2019
Domestic	$	98,261		$	77,721	$	93,510
India		5,873			6,245		4,769
Foreign other		(3,188	)		1,390		7,444
Total	$	100,946		$	85,356	$	105,723

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consists of the following (in thousands):

	2021			2020			2019
Current:
Federal	$	17,012		$	17,760		$	16,616
State		5,835			5,373			2,910
India		959			1,788			1,004
Foreign other		2,443			2,990			2,515
		26,249			27,911			23,045
Deferred:
Federal		2,294			(497	)		(1,943	)
State		344			(1,031	)		624
India		368			(387	)		36
Foreign other		(640	)		649			1,191
		2,366			(1,266	)		(92	)
Total income tax provision	$	28,615		$	26,645		$	22,953

Schedule of Effective Income Tax Rate Reconciliation

The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax is summarized as follows (in thousands):

	2021			2020			2019
Provision at Federal rate of 21%	$	21,199		$	17,925		$	22,202
State income taxes, net of Federal impact		4,882			3,430			2,792
Research and experimentation credits		(2,062	)		(2,705	)		(3,314	)
Stock award vesting		(538	)		(540	)		(3,661	)
Tax uncertainties		69			(403	)		(56	)
Section 162(m) compensation limitation		1,610			4,494			978
Foreign rate differential		592			462			930
Valuation allowance for deferred tax assets		1,427			1,002			(495	)
Withholding tax		2,305			2,572			2,408
Other impact of foreign operations		(468	)		621			227
Statutory rate change		(299	)		71			(10	)
Other		(102	)		(284	)		952
Total income tax provision	$	28,615		$	26,645		$	22,953

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2021 and 2020 are as follows (in thousands):

	2021			2020
Deferred income tax assets	$	56,065		$	59,895
Deferred income tax liabilities		(25,250	)		(33,099	)
Valuation allowance		(29,983	)		(21,700	)
Net deferred income tax assets	$	832		$	5,096

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2021 and 2020 are as follows (in thousands):

	2021			2020
Net deferred income tax assets:
Accrued expenses and reserves	$	9,470		$	12,587
Stock-based compensation		3,807			3,285
Software		(1,435	)		(1,532	)
Client contracts and related intangibles		(5,993	)		(5,199	)
Goodwill		(11,563	)		(9,109	)
Net operating loss carryforwards		31,548			26,893
Property and equipment		(6,136	)		(8,816	)
Deferred revenue		3,578			4,020
State taxes		2,020			1,804
Contingent payments		(123	)		(1,017	)
Foreign exchange gain/loss		1,064			1,406
Operating lease right-of-use assets and lease liabilities		1,768			1,962
Unrecognized tax benefit		522			446
Credits and incentives		951			612
Other		1,337			(546	)
Total deferred income tax assets		30,815			26,796
Less: valuation allowance		(29,983	)		(21,700	)
Net deferred income tax assets	$	832		$	5,096

Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands):

	2021			2020			2019
Balance, beginning of year	$	1,393		$	1,540		$	1,668
Additions related to prior acquisitions		1,508			160			—
Lapse of statute of limitations		(151	)		(313	)		(420	)
Additions for tax positions of prior years		36			111			322
Reductions for tax positions of prior years		(62	)		(105	)		(30	)
Additions for tax positions of current year		205			—			—
Balance, end of year	$	2,929		$	1,393		$	1,540