Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income (Loss) Before Income Tax Expense (Benefit)

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



	Years ended December 31,
	2017		2016			2015
Domestic	$	2,468	$	(1,527	)	$	(144	)
Foreign	3,359		14,153			12,950
Income before income taxes	$	5,827	$	12,626		$	12,806

Schedule of Components of Income Tax Expense (Benefit)

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



	Years ended December 31,
	2017			2016			2015
Current:
Federal	$	18,951		$	409		$	199
State	507			40			78
Foreign	2,072			3,482			562
Current income tax expense	21,530			3,931			839
Deferred:
Federal	1,038			(2,357		)	88
State	(580		)	(229		)	9
Foreign	(1,645		)	174			(943		)
Deferred income tax benefit	(1,187		)	(2,412		)	(846		)
Income tax expense (benefit)	$	20,343		$	1,519		$	(7	)

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,
	2017			2016			2015
Tax expense at statutory rate of 34%	$	1,981		$	4,427		$	4,354
State income taxes, net of federal benefit	81			(50		)	54
Foreign tax rate difference	(2,057		)	(1,939		)	(3,708		)
Research and development credit	(1,037		)	(917		)	(853		)
Change in valuation allowance	678			162			(28		)
Equity based compensation	33			(255		)	54
Manufacturing credit	(191		)	(61		)	11
Permanent impact of non-deductible cost	766			412			(14		)
Provision to return adjustments	777			(61		)	(59		)
Impact of Tax Cuts and Jobs Act of 2017	19,355			—			—
Other	(43		)	(199		)	182
Income tax expense (benefit)	$	20,343		$	1,519		$	(7	)

Schedule of 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,
	2017			2016
Net deferred income tax asset - Non-current
Warranty cost	$	695		$	1,121
Inventory reserve	419			456
Unearned service revenue	5,364			7,088
Employee stock options	4,366			4,501
Tax Credits	1,785			2,035
Loss carryforwards	8,782			8,005
Other, net	1,479			1,213
Total deferred tax assets	22,890			24,419
Valuation Allowance	(1,631		)	(876		)
Total deferred tax assets net of valuation allowance	21,259			23,543
Net deferred income tax liability - Non-current
Bad debt reserve	(2		)	(159		)
Depreciation	(3,675		)	(6,799		)
Goodwill	(1,574		)	(2,279		)
Intangible assets	(1,097		)	(1,409		)
Total deferred tax liabilities	(6,348		)	(10,646		)
Net deferred tax assets	$	14,911		$	12,897

Summary of Income Tax Examinations

The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2017:



Jurisdiction	Open Years	Examination in Process
United States - Federal Income Tax	2014-2017	N/A
United States - various states	2013-2017	2014-2016
Germany	2013-2017	N/A
Switzerland	2017	N/A
Singapore	2013-2017	N/A