Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income from Operations Before Income Taxes

	December 31, 2016			December 31, 2015			December 31, 2014
The components of income from operations before income taxes are as follows:
Domestic	$	(4,882	)	$	(2,490	)	$	(1,152	)
Foreign		16,574			15,913			12,290
Total	$	11,692		$	13,423		$	11,138

Provision for Income Taxes

	December 31, 2016			December 31, 2015		December 31, 2014
The current and deferred components of the provision for income taxes on operations are as follows:
Current	$	4,077		$	3,745	$	2,480
Deferred		(4,066	)		333		488
Total	$	11		$	4,078	$	2,968
The jurisdictional components of the provision for income taxes on operations are as follows:
Federal	$	(3,809	)	$	295	$	214
State		(207	)		276		(67	)
Foreign		4,027			3,507		2,821
Total	$	11		$	4,078	$	2,968

Consolidated Deferred Tax Assets (Liabilities)

	December 31, 2016			December 31, 2015
Deferred tax assets:
Temporary timing differences:
Stock compensation	$	1,722		$	1,079
Contingent consideration		3,333			2,126
Other		1,895			1,150
Total temporary timing differences		6,950			4,355
Net operating loss carryforwards		12,284			12,389
Tax business credits carryforwards		2,036			1,820
Total deferred tax assets		21,270			18,564
Valuation allowance		(9,979	)		(18,514	)
Net deferred tax assets	$	11,291		$	50
Deferred tax liabilities:
Goodwill and intangible assets	$	(7,346	)	$	(501	)
Conversion option on convertible notes		(6,048	)		—
Total deferred tax liabilities	$	(13,394	)	$	(501	)
Net deferred tax liabilities	$	(2,103	)	$	(451	)

Reconciliation of Federal Statutory Rate to Effective Income Tax Rate

The reconciliation of the federal statutory rate to the effective income tax rate for the fiscal years ended December 31, 2016, 2015 and 2014 is as follows (amounts in thousands):

	Year Ended
	December 31, 2016					December 31, 2015					December 31, 2014
Income before income taxes	$	11,692				$	13,423				$	11,138
Expected tax at statutory rate		3,975		34.0	%		4,564		34.0	%		3,787		34.0	%
Adjustments due to:
Difference between U.S. and foreign tax		(2,031	)	(17.4	%)		(1,910	)	(14.2	%)		(1,471	)	(13.2	%)
State income and franchise taxes		(326	)	(2.8	%)		563		4.2	%		122		1.1	%
Business tax credits		(236	)	(2.0	%)		(115	)	(0.9	%)		—		—
Permanent differences		567		4.8	%		118		0.9	%		(172	)	(1.5	%)
Change in valuation allowance		(1,981	)	(16.9	%)		1,216		9.1	%		727		6.5	%
Other		43		0.4	%		(358	)	(2.7	%)		(25	)	(0.2	%)
Provision (benefit) for income taxes	$	11		0.1	%	$	4,078		30.4	%	$	2,968		26.7	%

Summary of Tax Returns Periods Subject to Examination by Federal, State and International Taxing Authorities

The Company’s tax returns are subject to examination by federal, state and international taxing authorities for the following periods:

Jurisdiction	Fiscal years subject to examination
United States – federal and state		2013-2016
Sweden		2011-2016
Germany		2012-2016

Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):

Unrecognized tax benefits at January 1, 2016		1,289
Gross increases – tax positions in prior period		118
Unrecognized tax benefits at December 31, 2016	$	1,407