Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2017
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,
 
 
2017
 
2016
 
2015
 
 
(in thousands)
Domestic
 
$
12,424

 
$
23,817

 
$
(15,777
)
Foreign
 
2,817

 
3,669

 
2,713

Total
 
$
15,241

 
$
27,486

 
$
(13,064
)
(Benefit) Provision for Income Taxes
Our income tax expense (benefit) consisted of the following components:
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
 
(in thousands)
Current:
 
 
 
 
 
 
Federal
 
$
36

 
$
401

 
$
162

State
 
578

 
756

 
797

Foreign
 
313

 
449

 
414

Total current income tax expense
 
927

 
1,606

 
1,373

Deferred:
 
 
 
 
 
 
Federal
 
14,620

 
9,055

 
(5,075
)
State
 
(900
)
 
235

 
156

Foreign
 
217

 
(60
)
 
(300
)
Total deferred income tax expense (benefit)
 
13,937

 
9,230

 
(5,219
)
Total income tax expense (benefit)
 
$
14,864

 
$
10,836

 
$
(3,846
)
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,
 
 
2017
 
2016
 
2015
 
 
(in thousands)
Expense derived by applying the Federal income tax rate to income (loss) before income taxes
 
$
5,335

 
$
9,620

 
$
(4,572
)
State income tax, net of federal benefit
 
135

 
735

 
561

Foreign income tax
 
(631
)
 
(922
)
 
(813
)
Nondeductible expenses
 
1,606

 
545

 
418

Fair value adjustment on stock acquisition
 
(17
)
 
150

 
(52
)
Stock-based expense
 
(19,080
)
 
285

 
209

Reduction in available Federal NOL
 

 
255

 
350

Federal income tax rate reduction

 
25,070

 

 

Deemed repatriation of foreign earnings
 
2,211

 

 

Other
 
235

 
168

 
53

Total income tax expense (benefit)
 
$
14,864

 
$
10,836

 
$
(3,846
)
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,
 
 
2017
 
2016
 
 
(in thousands)
Deferred tax assets:
 
 
 
 
Reserves, deferred revenue and accrued liabilities
 
$
16,443

 
$
22,518

Stock-based expense
 
8,912

 
17,184

Net operating loss carryforwards and tax credits
 
42,119

 
16,193

Deferred tax assets before valuation allowance
 
67,474

 
55,895

Valuation allowance
 
(517
)
 

Total deferred tax assets, net of valuation allowance
 
66,957

 
55,895

Deferred tax liabilities:
 
 
 
 
Property, equipment, and software
 
(15,378
)
 
(25,626
)
Intangible assets
 
(3,940
)
 
(10,514
)
Other
 
(2,752
)
 
(4,090
)
Total deferred tax liabilities
 
(22,070
)
 
(40,230
)
Net deferred tax assets
 
$
44,887

 
$
15,665