Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.6.0.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Domestic and Foreign Components of Income (Loss) before Provision for Income Taxes
The domestic and foreign components of income (loss) before income taxes were as follows:
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(in thousands)
Domestic
 
$
23,817

 
$
(15,777
)
 
$
(18,768
)
Foreign
 
3,669

 
2,713

 
2,161

Total
 
$
27,486

 
$
(13,064
)
 
$
(16,607
)
(Benefit) Provision for Income Taxes
Our income tax expense (benefit) consisted of the following components:
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(in thousands)
Current:
 
 
 
 
 
 
Federal
 
$
401

 
$
162

 
$

State
 
756

 
797

 
437

Foreign
 
449

 
414

 
550

Total current income tax expense
 
1,606

 
1,373

 
987

Deferred:
 
 
 
 
 
 
Federal
 
9,055

 
(5,075
)
 
(6,611
)
State
 
235

 
156

 
(460
)
Foreign
 
(60
)
 
(300
)
 
(249
)
Total deferred income tax expense (benefit)
 
9,230

 
(5,219
)
 
(7,320
)
Total income tax expense (benefit)
 
$
10,836

 
$
(3,846
)
 
$
(6,333
)
Reconciliation of Income Tax (Benefit) Expense Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense
The reconciliation of our income tax expense (benefit) computed at the U.S. federal statutory tax rate to the actual income tax expense (benefit) is as follows:
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(in thousands)
Expense derived by applying the Federal income tax rate to income (loss) before income taxes
 
$
9,620

 
$
(4,572
)
 
$
(5,813
)
State income tax, net of federal benefit
 
735

 
561

 
(177
)
Foreign income tax
 
(922
)
 
(813
)
 
(477
)
Benefit of assets not previously recognized
 

 

 
(516
)
Nondeductible expenses
 
545

 
418

 
454

Fair value adjustment on stock acquisition
 
150

 
(52
)
 
(28
)
Stock-based expense
 
285

 
209

 
223

Reduction in available Federal NOL
 
255

 
350

 

Other
 
168

 
53

 
1

Total income tax expense (benefit)
 
$
10,836

 
$
(3,846
)
 
$
(6,333
)
Components of Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:
 
 
December 31,
 
 
2016
 
2015
 
 
(in thousands)
Deferred tax assets:
 
 
 
 
Reserves, deferred revenue and accrued liabilities
 
$
22,518

 
$
8,107

Stock-based expense
 
17,184

 
15,112

Net operating loss carryforwards and tax credits
 
16,193

 
13,733

Total deferred tax assets
 
55,895

 
36,952

Deferred tax liabilities:
 
 
 
 
Property, equipment, and software
 
(25,626
)
 
(10,041
)
Intangible assets
 
(10,514
)
 
(11,563
)
Other
 
(4,090
)
 
(3,297
)
Total deferred tax liabilities
 
(40,230
)
 
(24,901
)
Net deferred tax assets
 
$
15,665

 
$
12,051