Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

For the years ended December 31, 2016, 2015 and 2014, income before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands):



	2016		2015		2014
Domestic	$	6,174	$	9,470	$	16,961
Foreign	19,212		21,730		14,611

Total	$	25,386	$	31,200	$	31,572

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):



	2016			2015			2014

Current expense (benefit):
Federal	$	1,933		$	(17	)	$	1,316
State	492			747			768
Foreign	3,802			3,218			2,644

Total current expense	6,227			3,948			4,728

Deferred expense (benefit):
Federal	(144		)	3,250			4,078
State	(195		)	294			(119		)
Foreign	(623		)	(94		)	(89		)

Total deferred (benefit) expense	(962		)	3,450			3,870

Total income tax expense	$	5,265		$	7,398		$	8,598

Schedule of Effective Income Tax Rate Reconciliation

The difference between the income tax expense reported and amounts computed by applying the statutory federal rate of 35.0% to pretax income for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):



	2016			2015			2014

Computed federal income tax expense at statutory rate of 35%	$	8,885		$	10,920		$	11,050
State income taxes	193			698			438
Tax credits	(1,164		)	(1,019		)	(888		)
Production activity deduction	(53		)	—			—
Foreign tax rate differential	(3,717		)	(3,564		)	(1,958		)
Uncertain tax positions	597			536			(76		)
Deferred compensation insurance assets	(307		)	182			(81		)
Transaction-related expenses	274			—			—
Other — including the effect of graduated rates	557			(355		)	113

Total income tax expense	$	5,265		$	7,398		$	8,598

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31, 2016 and 2015, consisted of the following temporary differences and carry-forward items (in thousands):



	2016			2015

Deferred income tax assets:
Allowance for uncollectible accounts receivable	$	645		$	531
Accrued compensation expense	6,203			5,534
Inventory differences	1,065			2,043
Net operating loss carryforwards	27,742			11,434
Deferred revenue	73			118
Stock-based compensation expense	2,738			2,532
Federal research and development credit carryforward	3,524			2,355
Foreign tax credits	364			600
Other	6,984			5,754
Total deferred income tax assets	49,338			30,901

Deferred income tax liabilities:
Prepaid expenses	(782		)	(841		)
Property and equipment	(25,108		)	(24,467		)
Intangible assets	(35,773		)	(6,495		)
Other	(1,480		)	(1,077		)
Total deferred income tax liabilities	(63,143		)	(32,880		)
Valuation allowance	(3,786		)	(1,981		)
Net deferred income tax assets (liabilities)	$	(17,591	)	$	(3,960	)

Reported as:
Deferred income tax assets - Current	$	8,219		$	7,025
Deferred income tax assets - Long-term	171			—
Deferred income tax liabilities - Current	—			—
Deferred income tax liabilities - Long-term	(25,981		)	(10,985		)
Net deferred income tax liabilities	$	(17,591	)	$	(3,960	)

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):



Tabular Roll-forward	2016			2015			2014

Unrecognized tax benefits, opening balance	$	1,982		$	1,736		$	2,129
Gross increases in tax positions taken in a prior year	77			187			142
Gross increases in tax positions taken in the current year	856			763			309
Lapse of applicable statute of limitations	(366		)	(704		)	(844		)
Unrecognized tax benefits, ending balance	$	2,549		$	1,982		$	1,736