INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016			2015			2014
Domestic	$	37,329		$	63,124		$	36,485
Foreign		(2,127	)		(2,619	)		11,509
Total income before provision	$	35,202		$	60,505		$	47,994

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)	2016			2015			2014
Current:
Federal	$	6,741		$	17,864		$	22,488
State		2,963			4,565			2,952
Foreign		4,322			3,853			3,195
Total current provision		14,026			26,282			28,635
Deferred:
Federal		(1,120	)		2,075			(11,972	)
State		(480	)		(466	)		(1,209	)
Foreign		(4,210	)		(3,708	)		(715	)
Total deferred benefit		(5,810	)		(2,099	)		(13,896	)
Total provision	$	8,216		$	24,183		$	14,739

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:

	2016			2015			2014
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Valuation allowance		0.3			0.7			0.5
Transaction costs		1.1			—			—
State income taxes, net of federal benefit and tax credits		3.7			4.6			1.8
Permanent differences		2.2			1.1			1.3
Domestic production activities		(3.2	)		(3.1	)		(4.9	)
Federal research and experimentation credits		(2.3	)		(1.2	)		(1.7	)
Tax effects of foreign activities		5.2			2.0			(2.2	)
Tax-exempt income		(0.3	)		(0.1	)		(0.1	)
Provision to return adjustments		0.3			0.3			—
Non-deductible compensation		6.2			3.3			2.5
Provision for uncertain tax positions		(2.3	)		(2.6	)		(0.7	)
Excess tax benefits related to share-based compensation		(20.1	)		—			—
Other		(2.5	)		—			(0.8	)
Effective income tax rate		23.3	%		40.0	%		30.7	%

Components of Net Deferred Tax Assets and Liabilities

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

(in thousands)	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	69,307		$	65,601
Accruals and reserves		34,021			30,322
Software revenue		6,559			6,608
Depreciation		3,593			5,327
Tax credit carryforwards		8,094			6,686
Other		19			58
Total deferred tax assets		121,593			114,602
Less valuation allowances		(34,054	)		(35,509	)
Total net deferred tax assets	$	87,539		$	79,093
Deferred tax liabilities:
Intangibles	$	(17,641	)	$	(13,363	)
Total deferred tax liabilities		(17,641	)		(13,363	)
Total net deferred income taxes	$	69,898		$	65,730

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)	2016			2015			2014
Balance as of January 1,	$	23,972		$	43,396		$	40,929
Additions based on tax positions related to the current year		80			817			4,041
Additions for tax positions of prior years		110			183			285
(Reductions) Additions for acquired uncertain tax benefits		387			—			(716	)
Reductions for tax positions of prior years		(1,541	)		(19,855	)		(853	)
Reductions for a lapse of the applicable statute of limitations		(337	)		(569	)		(290	)
Balance as of December 31,	$	22,671		$	23,972		$	43,396