INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Components of Income before Provision for Income Taxes

The components of income before provision for income taxes are as follows for the years ended December 31:

(in thousands)	2015			2014		2013
Domestic	$	63,124		$	36,485	$	47,054
Foreign		(2,619	)		11,509		9,339
Total income before provision	$	60,505		$	47,994	$	56,393

Components of Provision for Income Taxes

The components of the provision for income taxes are as follows for the years ended December 31:

(in thousands)	2015			2014			2013
Current:
Federal	$	17,864		$	22,488		$	20,277
State		4,565			2,952			2,054
Foreign		3,853			3,195			3,027
Total current provision		26,282			28,635			25,358
Deferred:
Federal		2,075			(11,972	)		(6,069	)
State		(466	)		(1,209	)		(634	)
Foreign		(3,708	)		(715	)		(305	)
Total deferred expense (benefit)		(2,099	)		(13,896	)		(7,008	)
Total provision	$	24,183		$	14,739		$	18,350

Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate

The effective income tax rate differed from the statutory federal income tax rate due to the following:

	2015			2014			2013
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Valuation allowance		0.7			0.5			—
Transaction costs		—			—			0.4
State income taxes, net of federal benefit and tax credits		4.6			1.8			1.4
Permanent differences		1.1			1.3			1.0
Domestic production activities		(3.1	)		(4.9	)		(3.8	)
Federal research and experimentation credits		(1.2	)		(1.7	)		(2.8	)
Tax effects of foreign activities		2.0			(2.2	)		(1.9	)
Tax-exempt income		(0.1	)		(0.1	)		(0.1	)
Provision to return adjustments		0.3			—			0.8
Non-deductible compensation		3.3			2.5			1.2
Provision for uncertain tax positions		(2.6	)		(0.7	)		1.5
Other		—			(0.8	)		(0.2	)
Effective income tax rate		40.0	%		30.7	%		32.5	%

Components of Net Deferred Tax Assets and Liabilities

Significant components of net deferred tax assets and liabilities are as follows:

(in thousands)	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	65,601		$	86,770
Accruals and reserves		30,322			24,393
Software revenue		6,608			13,199
Depreciation		5,327			4,655
Tax credit carryforwards		6,686			6,028
Other		58			38
Total deferred tax assets		114,602			135,083
Less valuation allowances		(35,509	)		(35,620	)
Total net deferred tax assets	$	79,093		$	99,463
Deferred tax liabilities:
Intangibles	$	(13,363	)	$	(17,231	)
Total deferred tax liabilities		(13,363	)		(17,231	)
Total net deferred income taxes	$	65,730		$	82,232
Reported as:
Current net deferred tax asset	$	12,380		$	12,974
Long-term net deferred income tax assets		53,350			69,258
Total net deferred income taxes	$	65,730		$	82,232

Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

(in thousands)	2015			2014			2013
Balance as of January 1,	$	43,396		$	40,929		$	26,317
Additions based on tax positions related to the current year		817			4,041			4,320
Additions for tax positions of prior years		183			285			350
(Reductions) Additions for acquired uncertain tax benefits		—			(716	)		10,268
Reductions for tax positions of prior years		(19,855	)		(853	)		(50	)
Reductions for a lapse of the applicable statute of limitations		(569	)		(290	)		(276	)
Balance as of December 31,	$	23,972		$	43,396		$	40,929