	Years Ended December 31,
	2018		2017		2016
U.S.	$	11,917	$	9,435	$	3,351
Foreign		2,926		282		1,666
Income before income taxes	$	14,843	$	9,717	$	5,017

The income tax provision for the years ended December 31, 2018, 2017, and 2016 consisted of the following:

	Years Ended December 31,
	2018			2017			2016
Current:
Federal	$	1,540		$	1,543		$	1,627
State		540			419			(569	)
Foreign		(55	)		57			415
Total current		2,025			2,019			1,473
Deferred:
Federal		(65	)		598			1,592
State		(53	)		382			(21	)
Foreign		(19	)		(85	)		(446	)
Total deferred		(137	)		895			1,125
	$	1,888		$	2,914		$	2,598

On December 22, 2017, the legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (“the Act”) was signed into law making significant changes to the Internal Revenue Code of 1986, as amended. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017.The Act also provided for a mandatory one-time tax on the deemed repatriation of accumulative foreign earnings of foreign subsidiaries as of December 31 (the ‘Transition Tax’), a tax on global intangible low-taxed income (‘GILTI’) for tax year beginning after December 31,2017, and modified the rules on the deduction for executive compensation, We have calculated our best estimate of the impact of the Act in our year end income tax provision in accordance with our understanding of the Act and guidance available as of the date of this filing.

On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company recorded an estimated $45 of current tax expense at December 31, 2017 in connection with the Transition Tax. In the first quarter of 2018 the Company performed additional analysis of historical foreign earnings and as a result recorded an immaterial adjustment to the transition tax. The Company completed its analysis in the fourth quarter of 2018 with no further adjustment, and reported a total transition tax of $31 on their Federal tax return. In addition, we have elected to account for GILTI as a period cost.

The income tax provision for the years ended December, 31, 2018, 2017 and 2016 differs from the amounts computed by applying the statutory federal income tax rate to consolidated income before provision for income taxes as follows:

	Years Ended December 31,
	2018			2017			2016
Provision computed at statutory rate	$	3,116		$	3,401		$	1,757
Increase resulting from:
Difference in rates for foreign jurisdictions		93			37			(146	)
Tax exempt interest income		(2	)		(12	)		(21	)
Stock-based compensation		(1,708	)		(304	)		315
Other non-deductible expenses		252			(101	)		67
Non-deductible officers compensation		198			447			738
State income tax provision		396			653			(380	)
Losses not benefitted		23			4			1
Subsidiary earnings taxed in the US		(104	)		127			253
True-up of prior year returns		(20	)		(161	)		11
Research and development credit		(279	)		(801	)		—
Tax Cuts and Jobs Act of 2017		(11	)		(376	)		—
Cancellation of Foreign Subsidiary Debt		(127	)		—			—
Other		61			—			3
Provision for income taxes	$	1,888		$	2,914		$	2,598

Significant components of the Company’s net deferred tax assets and liabilities are as follows:

	As of December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	33		$	166
Contract liabilities		—			187
Accruals and allowances		1,253			972
Stock-based compensation		1,286			815
Deferred rent expense		1,267			1,327
Other		4			4
Gross deferred tax assets		3,843			3,471
Less valuation allowance		(33	)		(352	)
Total deferred tax assets		3,810			3,119
Deferred tax liabilities:
Intangible asset amortization		(2,603	)		(2,036	)
Depreciation		(1,814	)		(1,823	)
Total deferred tax liabilities		(4,417	)		(3,859	)
Net deferred tax liabilities	$	(607	)	$	(740	)
As reported:
Non-current deferred tax assets	$	55		$	98
Non-current deferred tax liabilities	$	(662	)	$	(838	)

In evaluating the ability to realize the net deferred tax liability, the Company considers all available evidence, both positive and negative, including past operating results, the existence of cumulative losses in the most recent fiscal years, tax planning strategies that are prudent and feasible, and forecasts of future taxable income. In considering sources of future taxable income, the Company makes certain assumptions and judgments which are based on the plans and estimates used to manage the underlying business of the Company. Changes in the Company’s assumptions and estimates, as well as changes in tax rates, may materially impact income tax expense for the period.

The deferred tax assets relating to the foreign net operating losses (“NOLs”) are fully offset by a valuation allowance. The valuation allowance of $33 and $0.4 million at December 31, 2018 and 2017 respectively, relates primarily to foreign NOLs that the Company determined were not more likely than not to be realized based on projections of future taxable income in China and Hong Kong. The valuation allowance decreased by$320, $91, and $85 during the years ended December 31, 2018, 2017, and 2016, respectively. To the extent realization of the deferred tax assets for NOLs becomes more likely than not, recognition of these acquired tax benefits would reduce income tax expense. As of December 31, 2018, the Company had a NOL carryforward of approximately $0.2 million, which may be used to offset future taxable income in foreign jurisdictions indefinitely.

The Company had no unrecognized tax benefits at December 31, 2018. It is not expected that the amount of unrecognized tax benefits will change significantly within the next twelve months.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2018, 2017, and 2016 is as follows:

	2018		2017		2016
Balance at beginning of year	$	—	$	—	$	184
Reductions due to amnesty and settlement		—		—		(188	)
Payments		—		—		—
Gross increases related to positions taken in prior periods		—		—		4
Balance at end of year	$	—	$	—	$	—

The Company files income tax returns in the U.S. and in foreign jurisdictions. Generally, the Company is no longer subject to U.S., state, local and foreign income tax examinations by tax authorities in its major jurisdictions for years before 2014, except to the extent of NOL and tax credit carryforwards from those years. Major taxing jurisdictions include the U.S., both federal and state. As of December 31, 2018, the Company also had foreign NOL carryforwards of $0.2 million, which may be used to offset future taxable income in foreign jurisdictions indefinitely. The deferred tax assets related to the foreign NOL carryforwards have been fully offset by a valuation allowance.

The Company considers the excess of its financial reporting over its tax basis in investments in foreign subsidiaries essentially permanent in duration and as such has not recognized deferred tax liability related to this difference. Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $7.0 million as of December 31, 2018. The Company has not provided any additional federal or state income taxes or foreign withholding taxes on the undistributed earnings as such earnings have been indefinitely reinvested in the business. Due to the various methods by which such earnings could be repatriated in the future, the amount of taxes attributable to the undistributed earnings is not practicably determinable.