Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign

For the years ended December 31, 2018, 2017 and 2016, income before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands):



	2018		2017		2016
Domestic	$	21,084	$	14,531	$	6,174
Foreign	28,435		21,350		19,212
Total	$	49,519	$	35,881	$	25,386

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the years ended December 31, 2018, 2017 and 2016, consisted of the following (in thousands):



	2018			2017			2016
Current expense (benefit):
Federal	$	(1,132	)	$	3,849		$	1,933
State	582			645			492
Foreign	6,000			5,168			3,802
Total current expense	5,450			9,662			6,227

Deferred expense (benefit):
Federal	4,400			(314		)	(144		)
State	(667		)	(216		)	(195		)
Foreign	(1,681		)	(774		)	(623		)
Total deferred (benefit) expense	2,052			(1,304		)	(962		)

Total income tax expense	$	7,502		$	8,358		$	5,265

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 21.0% to pretax income for the year ended December 31, 2018, and 35% for years ended December 31, 2017 and 2016, consisted of the following (in thousands):



	2018			2017			2016
Computed federal income tax expense at applicable statutory rate	$	10,399		$	12,559		$	8,885
State income taxes	(59		)	279			193
Tax credits	(1,734		)	(1,377		)	(1,164		)
Production activity deduction	—			—			(53		)
Foreign tax rate differential	(1,361		)	(3,329		)	(3,717		)
Uncertain tax positions	267			(19		)	597
Deferred compensation insurance assets	186			(479		)	(307		)
Transaction-related expenses	223			90			274
U.S. transition tax	(3,271		)	10,612			—
TCJA remeasurement of deferred taxes	(71		)	(8,383		)	—
Stock-based payments	(4,278		)	(2,264		)	—
Bargain purchase gain	—			(1,570		)	—
In-process research and development	—			1,486			—
Net GILTI	347			—			—
Foreign withholding tax	5,590			—			—
Other — including the effect of graduated rates	1,264			753			557
Total income tax expense	$	7,502		$	8,358		$	5,265

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31, 2018 and 2017, consisted of the following temporary differences and carry-forward items (in thousands):



	2018			2017
Deferred income tax assets:
Allowance for uncollectible accounts receivable	$	606		$	467
Accrued compensation expense	7,414			5,154
Inventory differences	1,269			2,505
Net operating loss carryforwards	20,226			15,741
Deferred revenue	46			58
Stock-based compensation expense	2,833			2,281
Other	9,243			8,986
Total deferred income tax assets	41,637			35,192

Deferred income tax liabilities:
Prepaid expenses	(1,142		)	(930		)
Property and equipment	(20,045		)	(20,352		)
Intangible assets	(58,883		)	(28,588		)
Foreign withholding tax	(5,590		)	—
Other	(4,350		)	(1,830		)
Total deferred income tax liabilities	(90,010		)	(51,700		)
Valuation allowance	(4,989		)	(4,422		)
Net deferred income tax assets (liabilities)	$	(53,362	)	$	(20,930	)

Reported as:
Deferred income tax assets - Long-term	$	3,001		$	2,359
Deferred income tax liabilities - Long-term	(56,363		)	(23,289		)
Net deferred income tax liabilities	$	(53,362	)	$	(20,930	)

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, 2018, 2017 and 2016, consisted of the following (in thousands):



Tabular Roll-forward	2018			2017			2016

Unrecognized tax benefits, opening balance	$	2,749		$	2,549		$	1,982
Gross increases in tax positions taken in a prior year	35			80			77
Gross increases in tax positions taken in the current year	586			403			856
Lapse of applicable statute of limitations	(423		)	(283		)	(366		)
Unrecognized tax benefits, ending balance	$	2,947		$	2,749		$	2,549