Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Significant components of the provision for income taxes are as follows (in thousands):

	Year Ended December 31,
	2015		2014		2013
Current:
Federal	$	6,394	$	10,973	$	7,292
State		772		1,846		883
Foreign		1,165		876		286
Total current		8,331		13,695		8,461

Deferred:
Federal		1,057		550		1,455
State		170		112		149
Foreign		270		-		-
Total deferred		1,497		662		1,604
Total provision for income taxes	$	9,828	$	14,357	$	10,065

Pretax Income

The components of pretax income for the years ended December 31, 2015, 2014 and 2013 are as follows (in thousands):

	Year Ended December 31,
	2015			2014			2013
Domestic		$	26,958		$	33,937		$	29,280
Foreign			5,877			3,583			2,217
Total		$	32,835		$	37,520		$	31,497

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred taxes as of December 31, 2015 and 2014 are as follows (in thousands):

	December 31,
	2015		2014
Deferred tax assets:
Accrued liabilities	$	1,164	$	1,172
Bad debt reserve		290		352
Net operating losses		1,051		1,265
Deferred compensation		3,375		3,060
Intangibles		646		-
Acquisition-related costs		-		380
Total deferred tax assets		6,526		6,229
Deferred tax liabilities:
Prepaid expenses		1,380		809
Equity in undistributed foreign earnings		-		125
Goodwill and intangibles		12,570		12,176
Fixed assets		1,039		1,352
Total deferred tax liabilities		14,989		14,462
Net deferred tax liability	$	8,463	$	8,233

Federal Corporate Statutory Income Tax Rate Reconciled to Effective Income Tax Rate

The federal corporate statutory tax rate is reconciled to the Company's effective income tax rate as follows:

	Year Ended December 31,
	2015		2014		2013
Federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	4.0		4.5		4.3
Effect of foreign operations	(2.6)		(1.0)		(1.3)
Stock compensation	3.4		2.6		1.7
Non-deductible acquisition costs	0.3		0.7		0.2
Research and development tax credit	(9.0)		(3.3)		(5.7)
U.S. domestic production deduction	(1.0)		(0.9)		(3.1)
Other	(0.2)		0.7		0.9
Effective tax rate	29.9	%	38.3	%	32.0	%

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

The following table is a reconciliation of beginning and ending balances of total amounts of gross unrecognized tax benefits (in thousands):

	December 31,
	2015			2014
Balance at beginning of year	$	545		$	519
Unrecognized tax benefits related to current year		460			211
Reductions for tax positions of prior years		(48	)		(185	)
Balance at end of year	$	957		$	545