Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income (Loss) Before Income Tax Expense (Benefit)

Income (loss) before income tax expense (benefit) consists of the following:



	Years ended December 31,
	2016			2015			2014
Domestic	$	(1,527	)	$	(144	)	$	12,877
Foreign	14,153			12,950			24,645
Income before income taxes	$	12,626		$	12,806		$	37,522

Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) for income taxes are as follows:



	Years ended December 31,
	2016			2015			2014
Current:
Federal	$	409		$	199		$	3,780
State	40			78			367
Foreign	3,482			562			4,433
Current income tax expense	3,931			839			8,580
Deferred:
Federal	(2,357		)	88			306
State	(229		)	9			30
Foreign	174			(943		)	(5,043		)
Deferred income tax benefit	(2,412		)	(846		)	(4,707		)
Income tax expense (benefit)	$	1,519		$	(7	)	$	3,873

Reconciliation of Income Tax Expense (Benefit)

Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax expense (benefit) are summarized below:



	Years ended December 31,
	2016			2015			2014
Tax expense at statutory rate of 34%	$	4,427		$	4,354		$	12,757
State income taxes, net of federal benefit	(50		)	54			425
Foreign tax rate difference	(1,939		)	(3,708		)	(2,917		)
Research and development credit	(917		)	(853		)	(583		)
Change in valuation allowance	162			(28		)	(5,392		)
Equity based compensation	(255		)	54			880
Manufacturing credit	(61		)	11			(721		)
Other	152			109			(576		)
Income tax expense (benefit)	$	1,519		$	(7	)	$	3,873

Components of Net Deferred Income Tax Assets and Liabilities

The components of our net deferred income tax asset and liabilities are as follows:



	As of December 31,
	2016			2015
Net deferred income tax asset - Current
Warranty cost	$	1,121		$	657
Bad debt reserve	(159		)	21
Inventory reserve	456			774
Unearned service revenue	4,934			4,319
Other, net	1,213			2,021
Net deferred income tax asset - Current	$	7,565		$	7,792
Net deferred income tax asset - Non-current
Depreciation	$	(6,799	)	$	(5,658	)
Goodwill amortization	(2,279		)	(2,076		)
Employee stock options	4,501			3,664
Unearned service revenue	2,155			2,337
Tax Credits	2,035			—
Loss carryforwards	8,005			6,568
Deferred income tax asset - Non-current	7,618			4,835
Valuation Allowance	(876		)	(785		)
Net deferred income tax asset - Non-current	$	6,742		$	4,050
Net deferred income tax liability - Non-current
Intangible assets	$	(1,409	)	$	(686	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

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



	Years ended December 31,
	2016		2015		2014
Balance at January 1,	$	265	$	265	$	265
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	59		—		—
Reductions for tax positions of prior years	—		—		—
Settlements	—		—		—
Balance at December 31,	$	324	$	265	$	265