Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2018 |
Income Tax Disclosure [Abstract] |
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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 |
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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 |
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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 |
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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 | ) | |
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| 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 | ) |
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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 |
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