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]  
Income (loss) before provision (benefit) for income tax
Income before provision for income tax is as follows (in thousands): 
 
Years Ended December 31,
 
2016
 
2015
 
2014
U.S.
$
68

 
$
20,507

 
$
16,621

Foreign
54,835

 
31,902

 
29,388

Income before provision for income tax
$
54,903

 
$
52,409

 
$
46,009

Summary of components of income tax expense
The components of income tax expense for the years ended December 31, 2016, 2015 and 2014 (in thousands): 
 
Years Ended December 31,
 
2016
 
2015
 
2014
Current
 
 
 
 
 
U.S. Federal
$
(1,388
)
 
$
13,497

 
$
6,514

U.S. State and local
692

 
1,984

 
1,082

Non-U.S.
15,069

 
2,239

 
6,874

Total current tax expense
14,373

 
17,720

 
14,470

Deferred
 
 
 
 
 
U.S. Federal
(1,534
)
 
(3,410
)
 
(728
)
U.S. State and local
(378
)
 
(385
)
 
(37
)
Non-U.S.
(152
)
 
560

 
(174
)
Total deferred tax benefit
(2,064
)
 
(3,235
)
 
(939
)
Total income tax expense
$
12,309

 
$
14,485

 
$
13,531

Deferred tax assets and liabilities
Significant components of deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands): 
 
December 31,
 
2016
 
2015
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
6,557

 
$
5,174

Credit carryforwards
2,512

 
2,078

Accruals deductible in different periods
16,157

 
18,721

Employee benefits
2,389

 
2,081

Total deferred tax assets
27,615

 
28,054

Valuation allowance
(3,706
)
 
(3,972
)
Total net deferred tax assets
$
23,909

 
$
24,082

Deferred tax liabilities:
 
Basis difference in fixed and intangible assets
(12,678
)
 
(15,197
)
Total deferred tax liabilities
(12,678
)
 
(15,197
)
Total net deferred tax assets
$
11,231

 
$
8,885

Reconciliation of effective income tax rate
The income tax expense in the accompanying statements of income differs from the provision calculated by applying the U.S. federal statutory income tax rate of 35% in 2016, 2015, and 2014 to income before taxes due to the following: 
 
Years Ended December 31,
 
2016
 
2015
 
2014
Federal statutory tax expense
$
19,216

 
$
18,343

 
$
16,103

State tax expense
188

 
1,249

 
892

Foreign taxes at rates less than U.S. rates
(6,838
)
 
(1,760
)
 
(3,097
)
Deferred charges on sales of U.S. intellectual property
980

 
(5,878
)
 

Equity compensation
(530
)
 
204

 
93

Tax credits
(911
)
 
(935
)
 
(862
)
Uncertain tax position
485

 
3,897

 
1,163

Lapse of statute
(495
)
 
(784
)
 
(652
)
Change of valuation allowance on foreign tax credit

 

 
(491
)
Earnout adjustment
(1,184
)
 

 

Tax audits
543

 

 

Other
855

 
149

 
382

Total expense
$
12,309

 
$
14,485

 
$
13,531

Uncertain Tax Positions
A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): 
Balance at January 1, 2014
$
3,387

Increases for tax positions related to prior years
493

Increases for tax positions related to the current year
73

Lapse of statutes of limitations
(558
)
Balance at January 1, 2015
$
3,395

Increases for tax positions related to prior years
281

Increases for tax positions related to the current year
3,302

Lapse of statutes of limitations
(664
)
Balance at January 1, 2016
$
6,314

Increases for tax positions related to prior years
174

Increases for tax positions related to the current year
70

Lapse of statutes of limitations
(475
)
Foreign exchange difference
(185
)
Balance at December 31, 2016
$
5,898