Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of Net Income from Continuing Operations Before Income Taxes

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

	2018		2017			2016
Domestic	$	80,234	$	89,095		$	98,966
Foreign		6,753		(1,385	)		1,033
Total	$	86,987	$	87,710		$	99,999

Schedule of Components of Income Tax Expense (Benefit)

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

	2018			2017		2016
Current:
Federal	$	7,814		$	13,422	$	31,409
State		4,589			1,909		3,819
Foreign		3,541			3,903		4,639
		15,944			19,234		39,867
Deferred:
Federal		4,584			5,582		(2,229	)
State		(619	)		937		276
Foreign		948			593		(797	)
		4,913			7,112		(2,750	)
Total income tax provision	$	20,857		$	26,346	$	37,117

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):

	2018			2017			2016
Provision at Federal rate of 21% for 2018, 35% for 2017 and 2016)	$	18,267		$	30,699		$	35,000
State income taxes, net of Federal impact		2,985			1,850			2,662
Research and experimentation credits		(4,040	)		(2,853	)		(71	)
Stock award vesting		(1,513	)		(7,882	)		—
Tax uncertainties		(122	)		166			(1,597	)
Section 199 manufacturing deduction		168			(962	)		(4,060	)
Section 162(m) compensation limitation		951			273			297
Foreign rate differential		1,238			162			857
Valuation allowance for deferred tax assets		(177	)		2,351			1,287
Other impact of foreign operations		2,755			3,933			2,157
Statutory rate change		(87	)		(2,210	)		—
Other		432			819			585
Total income tax provision	$	20,857		$	26,346		$	37,117

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2018 and 2017 are as follows (in thousands):

	2018			2017
Deferred income tax assets	$	51,533		$	56,013
Deferred income tax liabilities		(28,837	)		(25,184	)
Valuation allowance		(19,814	)		(21,356	)
Net deferred income tax assets	$	2,882		$	9,473

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2018 and 2017 are as follows (in thousands):

	2018			2017
Net deferred income tax assets:
Accrued expenses and reserves	$	7,180		$	10,745
Stock-based compensation		3,695			3,312
Software		(3,001	)		(4,364	)
Client contracts and related intangibles		(3,741	)		(5,932	)
Goodwill		(6,635	)		(5,828	)
Net operating loss carryforwards		24,857			29,953
Property and equipment		(8,315	)		1,381
Convertible debt securities		19			(3,639	)
Deferred revenue		2,606			2,225
State taxes		4,520			3,220
Contingent payments		(2,333	)		(1,860	)
Foreign exchange gain/loss		2,048			1,776
R&D credit		1,413			1,560
Other		383			(1,720	)
Total deferred income tax assets		22,696			30,829
Less: valuation allowance		(19,814	)		(21,356	)
Net deferred income tax assets	$	2,882		$	9,473

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):

	2018			2017			2016
Balance, beginning of year	$	1,915		$	1,891		$	4,079
Additions based on tax positions related to current year		—			136			—
Audit settlements		—			(183	)		(1,893	)
Lapse of statute of limitations		(226	)		(174	)		(122	)
Additions for tax positions of prior years		85			257			370
Reductions for tax positions of prior years		(106	)		(12	)		(543	)
Balance, end of year	$	1,668		$	1,915		$	1,891