Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consisted of:



	Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
	(In thousands)
Domestic	$	8,807	$	5,497	$	6,604
Foreign	68,645		64,655		71,425
Total	$	77,452	$	70,152	$	78,029

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consisted of:



	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
	(In thousands)
Current:
Federal	$	1,335		$	266		$	342
State	270			167			320
Foreign	4,847			4,532			3,660
	6,452			4,965			4,322
Deferred:
Federal	1,118			(632		)	2,382
State	43			(351		)	31
Foreign	(263		)	(760		)	(1,557		)
	898			(1,743		)	856

Provision for income taxes from ongoing operations at effective tax rate	$	7,350		$	3,222		$	5,178
Discrete Items:
Certain discrete tax impacts from foreign subsidiaries	(1,677		)	839			837
NOL carryforward adjustment	(810		)	—			—
IRS Settlement - net of ASC 740 (formerly "FIN 48") reserve reversals	480			—			—
2013 income tax return amendment	1,891			—			—
Additional reserves for uncertain tax positions (ASC 740, formerly "FIN 48")	9,798			6,817			2,745
Reconciliation of the tax payable liability accounts for our various subsidiaries to the income tax returns filed or to be filed in those jurisdictions	(3,138		)	—			(1,300		)
Provision for income taxes from discrete items	6,544			7,656			2,282

Total provision for income taxes	$	13,894		$	10,878		$	7,460

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision at the Federal statutory rate differs from the effective rate because of the following items:



	Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Statutory tax rate	35.0	%	35.0	%	35.0	%
Tax impact of foreign subsidiaries (primarily in Singapore)	(4.0	)%	(6.9	)%	(8.1	)%
State income taxes, net of federal benefit	0.3	%	(0.3	)%	0.4	%
Tax holiday - India (Permanent Difference)	(12.7	)%	(15.2	)%	(15.6	)%
Passive income exemption - Sweden (permanent difference)	(3.2	)%	(3.5	)%	(3.1	)%
Acquisition contingent earnout liability adjustments	(4.6	)%	(5.0	)%	(0.4	)%
Singapore enhanced R&D deductions	(1.1	)%	(1.2	)%	(1.3	)%
Other	(0.2	)%	1.7	%	(0.2	)%
Effective tax rate from ongoing operations	9.5	%	4.6	%	6.7	%
Discrete Items:
Certain discrete tax impacts from foreign subsidiaries	(2.2	)%	1.2	%	1.1	%
NOL carryforward adjustment	(1.0	)%	—	%	—	%
IRS Settlement - net of ASC 740 (formerly "FIN 48") reserve reversals	0.6	%	—	%	—	%
2013 income tax return amendment	2.4	%	—	%	—	%
Net ASC 740 (formerly "FIN 48") reserve additions for uncertain tax positions	12.7	%	9.7	%	3.5	%
Reconciliation of the tax payable liability accounts for our various subsidiaries to the income tax returns filed in those jurisdictions	(4.1	)%	—	%	(1.7	)%
Effective tax rate after discrete items	17.9	%	15.5	%	9.6	%

Schedule of Deferred Tax Assets and Liabilities

The individual balances in current and long-term deferred tax assets and liabilities are as follows:



	2014			2013
	(In thousands)
Current deferred income tax assets	$	2,310		$	961
Long-term deferred income tax assets	43,235			44,924
Total deferred income tax assets	45,545			45,885
Current deferred income tax liabilities	(197		)	(705		)
Long-term deferred income tax liabilities	(23,342		)	(24,308		)
Net deferred income tax asset	$	22,006		$	20,872

Deferred Income Tax, Temporary Differences Between Amounts of Assets and Liabilities

Temporary differences and carry forwards which comprise the deferred tax assets and liabilities as of December 31, 2014 and 2013 were as follows:



	December 31, 2014				December 31, 2013
	Deferred				Deferred
	Assets		Liabilities		Assets		Liabilities
	(In thousands)
Depreciation and amortization	$	254	$	—	$	580	$	—
Share-based compensation	817		—		781		—
Accruals and prepaids	2,342		470		3,415		788
Bad debts	600		—		394		—
Acquired intangible assets	—		23,069		—		24,225
Net operating loss carryforwards	16,595		—		19,698		—
Tax credit carryforwards (primarily MAT in India)	24,937		—		21,017		—
	45,545		23,539		45,885		25,013
Valuation allowance	—		—		—		—
Total deferred taxes	$	45,545	$	23,539	$	45,885	$	25,013

Schedule of Income Before Income Tax and Applicable Tax Rates, Domestic and Foreign

The pre-tax income from the applicable statutory tax rates in each jurisdiction in which the Company had operations for the year ending December 31, 2014 were as follows:



(dollar amounts in thousands)	United States			Canada			Latin America			Australia			Singapore			New Zealand			India			Mauritius			Europe(United Kingdom)			Sweden			Total
Pre-tax income	$	8,807		$	115		$	1,590		$	5,091		$	16,015		$	1,000		$	28,194		$	(370	)	$	9,940		$	7,070		$	77,452
Statutory tax rate	35.0		%	30.5		%	34.0		%	30.0		%	10.0		%	28.0		%	—		%	—		%	24.0		%	—		%

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	December 31, 2014			December 31, 2013		December 31, 2012
	(in thousands)
Beginning Balance	$	12,742		$	5,925	$	3,180
Additions for tax positions related to current year	451			6,546		2,482
Additions for tax positions of prior years	9,348			271		263
Reductions for tax position of prior years	(19,521		)	—		—
Ending Balance	$	3,020		$	12,742	$	5,925