Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020 are as follows (in thousands):

	December 31,
	2021		2020
Deferred tax assets:
Accounts receivable	$                   570		$                       832
Accrued liabilities	9,273		8,407
Equity-based compensation	7,763		5,902
Capitalized costs	515		578
Accrued sales taxes	196		145
Operating lease liabilities	4,593		8,828
State tax credits	4,521		3,408
Foreign subsidiary net operating losses	-		78
Tax credit - foreign	1,238			-
Valuation allowance	(4,403)		(3,375)
Other	531		659
		24,797	25,462
Deferred tax liabilities:
Intangible Assets	7,380		7,414
Depreciation	666		1,250
Deferred commissions	4,763		2,713
Operating lease right-of-use assets	4,338		8,325
	17,147		19,702
Net deferred tax assets	$	7,650	$	5,760

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 the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Domestic	$	120,565	$	101,681	$	104,878
Foreign		13,507		12,095		11,199
Total	$	134,072	$	113,776	$	116,077

Components of Income Tax Provision

The components of our income tax provision for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):

	Year Ended December 31,
	2021			2020			2019
Current:
Federal		14,042		$	13,860		$	18,682
State		5,188			4,793			5,711
Foreign		6,309			6,847			7,323
		25,539		$	25,500		$	31,716
Deferred:
Federal		(427	)		(393	)		(863	)
State		(531	)		1,113			(326	)
Foreign		(981	)		316			(212	)
		(1,939	)		1,036			(1,401	)
Total	$	23,600		$	26,536		$	30,315

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 the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021			2020			2019
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Effect of:
State income tax, net of federal benefit		3.6			3.9			3.5
State credit carryforwards		(0.8	)		0.5			1.3
U.S. federal R&D tax credit		(1.8	)		(1.9	)		(1.9	)
Excess benefit of equity compensation		(4.9	)		(3.4	)		(0.1	)
Employee compensation limitation		3.4			2.7			2.1
Global Intangible Low Taxed Income (GILTI)		0.2			0.1		-
Foreign-derived intangible income (FDII) deduction		(3.1	)		(2.7	)		(3.1	)
Foreign operations		(0.7	)		1.0			1.1
Tax contingencies		(0.3	)		1.9			3.7
Other permanent differences		0.3			(0.2	)		(0.6	)
Change in valuation allowance		0.7			0.4			(0.9	)
Income taxes		17.6	%		23.3	%		26.1	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	December 31,
	2021			2020			2019
Unrecognized tax benefits at January 1,	$	(12,804	)	$	(11,239	)	$	(7,113	)
Gross amount of increases in unrecognized tax benefits as a    result of tax positions taken during a prior period		(408	)		(118	)		(2,428	)
Gross amount of decreases in unrecognized tax benefits as a     result of tax positions taken during a prior period		147			1,598			445
Gross amount of increases in unrecognized tax benefits as a    result of tax positions taken during the current period		(3,117	)		(3,256	)		(2,489	)
Reductions to unrecognized tax benefits relating to    settlements with taxing authorities		148		-			-
Reductions to unrecognized tax benefits as a result of a lapse of    the applicable statute of limitations		2,848			211			346
Unrecognized tax benefits at December 31,	$	(13,186	)	$	(12,804	)	$	(11,239	)