Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Domestic and Foreign Components of Income (Loss) before Provision for Income Taxes
The domestic and foreign components of income before income taxes were as follows:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Domestic
 
$
32,190

 
$
12,424

 
$
23,817

Foreign
 
2,110

 
2,817

 
3,669

Total
 
$
34,300

 
$
15,241

 
$
27,486

(Benefit) Provision for Income Taxes
Our income tax expense consisted of the following components:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Current:
 
 
 
 
 
 
Federal
 
$
666

 
$
36

 
$
401

State
 
295

 
578

 
756

Foreign
 
738

 
313

 
449

Total current income tax expense
 
1,699

 
927

 
1,606

Deferred:
 
 
 
 
 
 
Federal
 
(1,543
)
 
14,620

 
9,055

State
 
(255
)
 
(900
)
 
235

Foreign
 
(326
)
 
217

 
(60
)
Total deferred income tax (benefit) expense
 
(2,124
)
 
13,937

 
9,230

Total income tax expense
 
$
(425
)
 
$
14,864

 
$
10,836

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 computed at the U.S. federal statutory tax rate to the actual income tax expense is as follows:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Expense derived by applying the Federal income tax rate to income before income taxes
 
$
7,203

 
$
5,335

 
$
9,620

State income tax, net of federal benefit
 
(204
)
 
135

 
735

Foreign income tax
 
26

 
(631
)
 
(922
)
Change in valuation allowance
 
734

 

 

Nondeductible expenses
 
2,187

 
1,606

 
545

Fair value adjustment on stock acquisition
 
33

 
(17
)
 
150

Stock-based expense
 
(11,788
)
 
(19,080
)
 
285

Reduction in available Federal NOL
 

 

 
255

Federal income tax rate reduction
 

 
25,070

 

Deemed repatriation of foreign earnings
 

 
2,211

 

Base erosion and anti-abuse tax
 
1,117

 

 

Other
 
267

 
235

 
168

Total income tax expense
 
$
(425
)
 
$
14,864

 
$
10,836

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,
 
 
2018
 
2017
 
 
(in thousands)
Deferred tax assets:
 
 
 
 
Reserves, deferred revenue and accrued liabilities
 
$
17,120

 
$
16,443

Stock-based expense
 
8,408

 
8,912

Net operating loss carryforwards and tax credits
 
56,210

 
42,119

Deferred tax assets before valuation allowance
 
81,738

 
67,474

Valuation allowance
 
(1,251
)
 
(517
)
Total deferred tax assets, net of valuation allowance
 
80,487

 
66,957

Deferred tax liabilities:
 
 
 
 
Property, equipment, and software
 
(16,810
)
 
(15,378
)
Intangible assets
 
(13,580
)
 
(3,940
)
Other
 
(7,495
)
 
(2,752
)
  Total deferred tax liabilities
 
(37,885
)
 
(22,070
)
   Net deferred tax assets
 
$
42,602

 
$
44,887