Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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):

	2020		2019		2018
Domestic	$	77,721	$	93,510	$	80,234
India		6,245		4,769		2,173
Foreign Other		1,390		7,444		4,580
Total	$	85,356	$	105,723	$	86,987

Schedule of Components of Income Tax Expense (Benefit)

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

		2020			2019			2018
Current:
Federal	$	17,760		$	16,616		$	7,814
State		5,373			2,910			4,589
India		1,788			1,004			757
Foreign Other		2,990			2,515			2,784
		27,911			23,045			15,944
Deferred:
Federal		(497	)		(1,943	)		4,584
State		(1,031	)		624			(619	)
India		(387	)		36			(152	)
Foreign Other		649			1,191			1,100
		(1,266	)		(92	)		4,913
Total income tax provision	$	26,645		$	22,953		$	20,857

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):

	2020			2019			2018
Provision at Federal rate of 21%	$	17,925		$	22,202		$	18,267
State income taxes, net of Federal impact		3,430			2,792			2,985
Research and experimentation credits		(2,705	)		(3,314	)		(4,040	)
Stock award vesting		(540	)		(3,661	)		(1,513	)
Tax uncertainties		(403	)		(56	)		(122	)
Section 199 manufacturing deduction		—			—			168
Section 162(m) compensation limitation		4,494			978			951
Foreign rate differential		462			930			1,238
Valuation allowance for deferred tax assets		1,002			(495	)		(177	)
Withholding Tax		2,572			2,408			2,070
Other impact of foreign operations		621			227			685
Statutory rate change		71			(10	)		(87	)
Other		(284	)		952			432
Total income tax provision	$	26,645		$	22,953		$	20,857

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2020 and 2019 are as follows (in thousands):

	2020			2019
Deferred income tax assets	$	59,895		$	71,343
Deferred income tax liabilities		(33,099	)		(48,411	)
Valuation allowance		(21,700	)		(19,916	)
Net deferred income tax assets	$	5,096		$	3,016

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2020 and 2019 are as follows (in thousands):

	2020			2019
Net deferred income tax assets:
Accrued expenses and reserves	$	12,587		$	8,810
Stock-based compensation		3,285			4,844
Software		(1,532	)		(1,556	)
Client contracts and related intangibles		(5,199	)		(7,771	)
Goodwill		(9,109	)		(7,431	)
Net operating loss carryforwards		26,893			25,989
Property and equipment		(8,816	)		(4,410	)
Deferred revenue		4,020			1,307
State Taxes		1,804			1,387
Contingent payments		(1,017	)		(1,710	)
Foreign exchange gain/loss		1,406			1,340
Operating lease right-of-use assets and lease liabilities		1,962			1,611
Other		512			522
Total deferred income tax assets		26,796			22,932
Less: valuation allowance		(21,700	)	$	(19,916	)
Net deferred income tax assets	$	5,096		$	3,016

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):

	2020			2019			2018
Balance, beginning of year	$	1,540		$	1,668		$	1,915
Purchase accounting adjustment related to  acquisitions		160			—			—
Lapse of statute of limitations		(313	)		(420	)		(226	)
Additions for tax positions of prior years		111			322			85
Reductions for tax positions of prior years		(105	)		(30	)		(106	)
Balance, end of year	$	1,393		$	1,540		$	1,668