Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Net Income Before Income Taxes

Income Tax Provision/(Benefit). The components of net income from continuing operations before income taxes are as follows (in thousands):

	2015		2014			2013
Domestic	$	93,390	$	70,737		$	63,278
Foreign		2,951		(9,215	)		(1,759	)
Total	$	96,341	$	61,522		$	61,519

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision related to continuing operations consists of the following (in thousands):

	2015			2014			2013
Current:
Federal	$	41,002		$	20,374		$	12,880
State		5,227			2,443			916
Foreign		3,651			2,953			4,273
		49,880			25,770			18,069
Deferred:
Federal		(14,611	)		1,139			1,130
State		(1,147	)		837			2,329
Foreign		(348	)		(1,935	)		(5,277	)
		(16,106	)		41			(1,818	)
Total income tax provision	$	33,774		$	25,811		$	16,251

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 related to continuing operations is summarized as follows (in thousands):

	2015			2014			2013
Provision at Federal rate of 35%	$	33,719		$	21,533		$	21,532
State income taxes, net of Federal impact		2,652			2,132			2,109
Research and experimentation credits		(2,135	)		(450	)		(5,754	)
Tax uncertainties		(166	)		187			(269	)
Section 199 manufacturing deduction		(2,884	)		(1,936	)		(2,263	)
Foreign rate differential		688			2,847			1,133
Valuation allowance for deferred tax assets		919			3,602			(3,312	)
Other impact of foreign operations		283			(3,555	)		2,088
Other		698			1,451			987
Total income tax provision	$	33,774		$	25,811		$	16,251

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax liabilities as of December 31, 2015 and 2014 are as follows (in thousands):

	2015			2014
Deferred income tax assets	$	77,270		$	77,201
Deferred income tax liabilities		(42,576	)		(55,045	)
Valuation allowance		(17,414	)		(20,507	)
Net deferred income tax assets	$	17,280		$	1,649

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2015 and 2014 are as follows (in thousands):

	2015			2014
Net current deferred income tax assets:
Accrued expenses and reserves	$	14,001		$	10,221
Stock-based compensation		5,528			4,425
Total current deferred income tax assets		19,529			14,646
Less: valuation allowance		(1,394	)		(1,442	)
Net current deferred income tax assets	$	18,135		$	13,204
Net non-current deferred income tax assets:
Software	$	412		$	809
Client contracts and related intangibles		(2,914	)		(5,252	)
Net operating loss carryforwards		15,688			18,527
Property and equipment		7,975			11,470
Deferred revenue		914			550
Facility abandonment		143			262
Other		877			305
Total non-current deferred income tax assets		23,095			26,671
Less: valuation allowance		(14,713	)		(17,781	)
Net non-current deferred income tax assets	$	8,382		$	8,890
Net non-current deferred income tax liabilities:
Software	$	190		$	211
Client contracts and related intangibles		835			3,127
Goodwill		(7,590	)		(6,747	)
Net operating loss carryforwards		23,038			23,298
Property and equipment		(15,219	)		(15,048	)
Convertible debt securities		(16,853	)		(27,708	)
Deferred revenue		3,354			961
Contingent payments		849			840
Facility abandonment		2,231			2,194
Other		1,235			(290	)
Total non-current deferred income tax liabilities		(7,930	)		(19,162	)
Less: valuation allowance		(1,307	)		(1,284	)
Net non-current deferred income tax liabilities	$	(9,237	)	$	(20,446	)

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):

	2015			2014			2013
Balance, beginning of year	$	3,417		$	3,713		$	3,372
Additions based on tax positions related to current year		150			351			173
Additions for tax positions of prior years		925			30			569
Reductions for tax positions of prior years		(413	)		(677	)		(401	)
Balance, end of year	$	4,079		$	3,417		$	3,713