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 |
) |
|