Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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):

	2019		2018		2017
Domestic	$	93,510	$	80,234	$	89,095
Foreign		12,213		6,753		(1,385	)
Total	$	105,723	$	86,987	$	87,710

Schedule of Components of Income Tax Expense (Benefit)

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

	2019			2018			2017
Current:
Federal	$	16,616		$	7,814		$	13,422
State		2,910			4,589			1,909
Foreign		3,519			3,541			3,903
		23,045			15,944			19,234
Deferred:
Federal		(1,943	)		4,584			5,582
State		624			(619	)		937
Foreign		1,227			948			593
		(92	)		4,913			7,112
Total income tax provision	$	22,953		$	20,857		$	26,346

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):

	2019			2018			2017
Provision at Federal rate of 21% for 2019 and 2018, 35% for 2017)	$	22,202		$	18,267		$	30,699
State income taxes, net of Federal impact		2,792			2,985			1,850
Research and experimentation credits		(3,314	)		(4,040	)		(2,853	)
Stock award vesting		(3,661	)		(1,513	)		(7,882	)
Tax uncertainties		(56	)		(122	)		166
Section 199 manufacturing deduction		—			168			(962	)
Section 162(m) compensation limitation		978			951			273
Foreign rate differential		930			1,238			162
Valuation allowance for deferred tax assets		(495	)		(177	)		2,351
Other impact of foreign operations		2,635			2,755			3,933
Statutory rate change		(10	)		(87	)		(2,210	)
Other		952			432			819
Total income tax provision	$	22,953		$	20,857		$	26,346

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2019 and 2018 are as follows (in thousands):

	2019			2018
Deferred income tax assets	$	71,343		$	51,533
Deferred income tax liabilities		(48,411	)		(28,837	)
Valuation allowance		(19,916	)		(19,814	)
Net deferred income tax assets	$	3,016		$	2,882

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2019 and 2018 are as follows (in thousands):

	2019			2018
Net deferred income tax assets:
Accrued expenses and reserves	$	8,810		$	7,180
Stock-based compensation		4,844			3,695
Software		(1,556	)		(3,001	)
Client contracts and related intangibles		(7,771	)		(3,741	)
Goodwill		(7,431	)		(6,635	)
Net operating loss carryforwards		25,989			24,857
Property and equipment		(4,410	)		(8,315	)
Convertible debt securities		—			19
Deferred revenue		1,307			2,606
State Taxes		1,387			4,520
Contingent payments		(1,710	)		(2,333	)
Foreign exchange gain/loss		1,340			2,048
R&D credit		207			1,413
Operating lease right-of-use assets and lease liabilities		1,611			—
Other		315			383
Total deferred income tax assets		22,932			22,696
Less: valuation allowance		(19,916	)		(19,814	)
Net deferred income tax assets	$	3,016		$	2,882

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):

	2019			2018			2017
Balance, beginning of year	$	1,668		$	1,915		$	1,891
Additions based on tax positions related to current year		—			—			136
Audit Settlements		—			—			(183	)
Lapse of statute of limitations		(420	)		(226	)		(174	)
Additions for tax positions of prior years		322			85			257
Reductions for tax positions of prior years		(30	)		(106	)		(12	)
Balance, end of year	$	1,540		$	1,668		$	1,915