Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Before Income Taxes

The components of income before income taxes are as follows:

	For the Years Ended December 31,
	2019			2018			2017
	(Amounts in thousands)
Domestic	$	(5,432	)	$	(73	)	$	(6,709	)
Foreign		31,583			21,509			13,957
Income before income taxes	$	26,151		$	21,436		$	7,248

Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:

	For the Years Ended December 31,
	2019			2018			2017
	(Amounts in thousands)
Components of the income tax provision (benefit):
Current	$	8,290		$	4,354		$	3,624
Deferred		(5,287	)		465			(24,729	)
Equity		1,737			—			—
Total	$	4,740		$	4,819		$	(21,105	)
Jurisdictional components of the income tax provision (benefit):
Federal	$	(965	)	$	(393	)	$	(24,012	)
State		(1,764	)		718			(438	)
Foreign		7,469			4,494			3,345
Total	$	4,740		$	4,819		$	(21,105	)

Consolidated Deferred Tax Assets (Liabilities)

	December 31,
	2019			2018
	(Amounts in thousands)
Deferred tax assets:
Temporary timing differences:
Stock-based compensation expense	$	2,922		$	2,874
Contingent consideration		2,206			2,263
Operating leases		7,295			—
Accrued bonus		1,379			3
Other		4,994			3,585
Total temporary timing differences		18,796			8,725
Net operating loss carryforwards		221			—
Tax business credits carryforwards		924			2,004
Total deferred tax assets		19,941			10,729
Less: valuation allowance		(6	)		(131	)
Net deferred tax assets		19,935			10,598
Deferred tax liabilities:
Goodwill		(1,288	)		(1,076	)
Fixed assets		(1,650	)		(956	)
Acquired intangible assets		(26,811	)		(26,903	)
Operating lease right of use assets		(6,144	)		—
Conversion option on convertible notes		(11,066	)		(2,394	)
Total deferred tax liabilities		(46,959	)		(31,329	)
Total net deferred tax liabilities	$	(27,024	)	$	(20,731	)

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 years ended December 31, 2019, 2018 and 2017 is as follows:

	For the Years Ended December 31,
	2019						2018						2017
	Amount			%			Amount			%			Amount			%
	(Amounts in thousands, except percentages)
Income before income taxes	$	26,151					$	21,436					$	7,248
Expected tax at statutory rate		5,492			21.0	%		4,502			21.0	%		2,537			35.0	%
Adjustments due to:
Difference between U.S. and foreign tax		436			1.7	%		345			1.6	%		(1,797	)		(24.8	%)
State income and franchise tax		(179	)		(0.7	%)		91			0.4	%		(307	)		(4.2	%)
Business tax credits		(2,746	)		(10.5	%)		(1,760	)		(8.2	%)		(708	)		(9.8	%)
Permanent differences:
Stock-based compensation expense		(1,877	)		(7.2	%)		(1,213	)		(5.7	%)		(946	)		(13.1	%)
Transaction costs		—			0.0	%		—			0.0	%		1,232			17.0	%
U.S. taxation of foreign earnings		2,227			8.5	%		2,190			10.2	%		—			0.0	%
Executive compensation		841			3.2	%		367			1.7	%		265			3.7	%
Other		92			0.4	%		97			0.5	%		205			2.8	%
Change in U.S. federal tax rates		—			0.0	%		—			0.0	%		(12,839	)		(177.1	%)
Change in U.S. state tax rates		—			0.0	%		748			3.5	%		(151	)		(2.1	%)
Change in Netherlands tax rate		(193	)		(0.7	%)		(388	)		(1.8	%)		—			0.0	%
Transition tax		—			0.0	%		(1,338	)		(6.2	%)		3,266			45.1	%
Uncertain tax provisions		1,069			4.1	%		1,021			4.8	%		241			3.3	%
Change in valuation allowance		(125	)		(0.5	%)		125			0.6	%		(12,164	)		(167.8	%)
Return to provision adjustments		(79	)		(0.3	%)		33			0.2	%		(161	)		(2.2	%)
Other		(218	)		(0.8	%)		(1	)		(0.1	%)		222			3.0	%
Income tax provision (benefit)	$	4,740			18.1	%	$	4,819			22.5	%	$	(21,105	)		(291.2	%)

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		2016-2019
Sweden		2012-2019
Germany		2017-2019
Netherlands		2013-2019

Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	For the Years Ended December 31,
	2019			2018
	(Amounts in thousands)
Balance of gross unrecognized tax benefits, beginning of period	$	2,852		$	1,806
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period		602			1,062
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in the prior period		(16	)		—
Gross amounts of decrease due to release		(16	)		(16	)
Balance of gross unrecognized tax benefits, end of period	$	3,422		$	2,852