Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of Deferred Tax Assets and Liabilities

We present below significant components of our deferred tax assets and liabilities as of December 31, 2018 and 2017 (in thousands):

	December 31,
	2018			2017
Deferred tax assets:
Accounts receivable	$	599		$	618
Accrued liabilities		5,075			2,571
Equity-based compensation		4,643			3,732
Capitalized costs		911			595
Accrued sales taxes		202			257
Deferred rent		96			336
State tax credits		5,495			5,870
Foreign subsidiary net operating losses		175			278
Valuation allowance		(3,846	)		(4,084	)
Other		778			297
		14,128			10,470
Deferred tax liabilities:
Intangible assets		7,502			7,480
Depreciation		1,237			1,182
		8,739			8,662
Net deferred tax assets	$	5,389		$	1,808

Components of Income from Domestic and Foreign Operations Before Income Tax Expense

We present below income from domestic and foreign operations before income tax expense for 2018, 2017 and 2016 (in thousands):

	Year Ended December 31,
	2018		2017		2016
Domestic	$	126,542	$	177,314	$	186,234
Foreign		9,689		7,519		9,873
Total	$	136,231	$	184,833	$	196,107

Components of Income Tax Provision

We present below the components of our income tax provision for 2018, 2017 and 2016 (in thousands):

	Year Ended December 31,
	2018			2017			2016
Current:
Federal	$	22,606		$	53,998		$	56,053
State		6,182			6,595			8,204
Foreign		7,018			6,185			5,819
		35,806			66,778			70,076
Deferred:
Federal		(3,127	)		1,590			2,086
State		(674	)		35			(268	)
Foreign		(464	)		(51	)		(21	)
		(4,265	)		1,574			1,797
Total	$	31,541		$	68,352		$	71,873

Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates

We present below a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for 2018, 2017 and 2016:

	Year Ended December 31,
	2018			2017			2016
Statutory federal income tax rate		21.0	%		35.0	%		35.0	%
Effect of:
State income tax, net of federal benefit		3.4			2.3			2.7
State credit carryforwards		0.3			(0.1	)		(0.2	)
U.S. federal R&D tax credit		(1.7	)		(0.8	)		(0.7	)
Tax Reform		(0.1	)		1.5			-
Excess benefit of equity compensation		(0.6	)		(1.0	)		-
Foreign-derived intangible income (FDII) deduction		(1.6	)		-			-
Foreign operations		1.2			(0.1	)		(0.2	)
Tax contingencies		0.5			-			0.6
Other permanent differences		1.0			0.3			(0.5	)
Change in valuation allowance		(0.2	)		(0.1	)		(0.1	)
Income taxes		23.2	%		37.0	%		36.6	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for 2018, 2017 and 2016 (in thousands):

	December 31,
	2018		2017				2016
Unrecognized tax benefits at January 1,	$	(7,419		)	$	(6,938		)	$	(5,789	)
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period		(873		)		(789		)		(756	)
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period		233				145				270
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period		(78		)		-				(791	)
Reductions to unrecognized tax benefits relating to settlements with taxing authorities		349				-				-
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		675				163				128
Unrecognized tax benefits at December 31,	$	(7,113		)	$	(7,419		)	$	(6,938	)