Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Before Income Taxes

The components of income before income taxes are as follows:

	For the Years Ended December 31,
	2020		2019			2018
	(Amounts in thousands)
Domestic	$	27,545	$	(5,432	)	$	(73	)
Foreign		31,672		31,583			21,509
Income before income taxes	$	59,217	$	26,151		$	21,436

Income Tax Provision (Benefit)

The components of the income tax provision are as follows:

	For the Years Ended December 31,
	2020			2019			2018
	(Amounts in thousands)
Components of the income tax (benefit) provision:
Current	$	5,193		$	8,290		$	4,354
Deferred		(5,902	)		(5,287	)		465
Equity		—			1,737			—
Total	$	(709	)	$	4,740		$	4,819
Jurisdictional components of the income tax (benefit) provision:
Federal	$	(4,741	)	$	(965	)	$	(393	)
State		(3,011	)		(1,764	)		718
Foreign		7,043			7,469			4,494
Total	$	(709	)	$	4,740		$	4,819

Consolidated Deferred Tax Assets (Liabilities)

The components of deferred income taxes are as follows:

	December 31,
	2020			2019
	(Amounts in thousands)
Deferred tax assets:
Temporary timing differences:
Stock-based compensation expense	$	3,320		$	2,922
Operating leases		7,257			7,295
Accrued bonus		25			1,379
Other		5,749			4,994
Total temporary timing differences		16,351			16,590
Net operating loss carryforwards		1,539			221
Tax business credits carryforwards		5,553			924
Total deferred tax assets		23,443			17,735
Less: valuation allowance		(727	)		(6	)
Net deferred tax assets		22,716			17,729
Deferred tax liabilities:
Goodwill		(1,487	)		(1,288	)
Fixed assets		(4,233	)		(1,650	)
Acquired intangible assets		(27,152	)		(24,605	)
Operating lease right of use assets		(5,744	)		(6,144	)
Conversion option on convertible notes		(8,651	)		(11,066	)
Total deferred tax liabilities		(47,267	)		(44,753	)
Total net deferred tax liabilities	$	(24,551	)	$	(27,024	)

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, 2020, 2019 and 2018 is as follows:

	For the Years Ended December 31,
	2020						2019						2018
	Amount			%			Amount			%			Amount			%
	(Amounts in thousands, except percentages)
Income before income taxes	$	59,217					$	26,151					$	21,436
Expected tax at statutory rate		12,436			21.0	%		5,492			21.0	%		4,502			21.0	%
Adjustments due to:
Difference between U.S. and foreign tax		618			1.0	%		436			1.7	%		345			1.6	%
State income and franchise tax		133			0.2	%		(179	)		(0.7	%)		91			0.4	%
Business tax credits		(4,660	)		(7.9	%)		(2,746	)		(10.5	%)		(1,760	)		(8.2	%)
Permanent differences:
Stock-based compensation expense		(9,243	)		(15.6	%)		(1,877	)		(7.2	%)		(1,213	)		(5.7	%)
U.S. taxation of foreign earnings		51			0.1	%		2,227			8.5	%		2,190			10.2	%
Executive compensation		1,401			2.4	%		841			3.2	%		367			1.7	%
Other		896			1.5	%		92			0.4	%		97			0.5	%
Change in U.S. federal tax rates		(2,192	)		(3.7	%)		—			0.0	%		—			0.0	%
Change in U.S. state tax rates		(708	)		(1.2	%)		—			0.0	%		748			3.5	%
Change in Netherlands tax rate		250			0.4	%		(193	)		(0.7	%)		(388	)		(1.8	%)
Transition tax		—			0.0	%		—			0.0	%		(1,338	)		(6.2	%)
Uncertain tax provisions		(168	)		(0.3	%)		1,069			4.1	%		1,021			4.8	%
Change in valuation allowance		(12	)		(0.0	%)		(125	)		(0.5	%)		125			0.6	%
Return to provision adjustments		(89	)		(0.2	%)		(79	)		(0.3	%)		33			0.2	%
Other		578			1.0	%		(218	)		(0.8	%)		(1	)		(0.1	%)
Income tax provision	$	(709	)		(1.2	%)	$	4,740			18.1	%	$	4,819			22.5	%

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

The Company’s tax returns are subject to examination by federal, state and foreign tax authorities. The Company’s two major tax jurisdictions are subject to examination for the following periods:

Jurisdiction	Fiscal Years Subject to Examination
United States - federal and state		2017-2020
Sweden		2013-2020

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,
	2020			2019
	(Amounts in thousands)
Balance of gross unrecognized tax benefits, beginning of period	$	3,422		$	2,852
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period		154			602
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in the prior period		(337	)		(16	)
Gross amounts of decrease due to release		(39	)		(16	)
Balance of gross unrecognized tax benefits, end of period	$	3,200		$	3,422