INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of income (loss) before income taxes

        Income (loss) before income taxes consists of the following (in thousands):

	Year Ended December 31,
	2015			2014			2013
Income (loss) before income taxes
United States	$	(6,331	)	$	(20,892	)	$	12,273
Foreign		13,993			15,040			4,832
Total	$	7,662		$	(5,852	)	$	17,105

Schedule of income tax expense (benefit)

        Income tax expense (benefit) for 2015, 2014 and 2013 consists of the following (in thousands):

	Year Ended December 31,
	2015			2014			2013
Current:
Federal	$	(8,459	)	$	(6,735	)	$	9,121
State		(187	)		(362	)		1,849
Foreign		2,700			3,120			1,542
Total current		(5,946	)		(3,977	)		12,512
Deferred:
Federal		14,006			2,599			(4,687	)
State		11,103			(3,270	)		(1,724	)
Foreign		437			133			(106	)
Total deferred		25,546			(538	)		(6,517	)
Total income tax expense (benefit)	$	19,600		$	(4,515	)	$	5,995

Schedule of income tax expense (benefit) and resulting effective tax rate by jurisdiction

        The following is a summary of our income tax expense (benefit) and resulting effective tax rate by jurisdiction (in thousands):

	Year Ended December 31,
	2015			2014			2013
Income tax expense (benefit) by jurisdiction:
United States	$	16,463		$	(7,768	)	$	4,559
Foreign		3,137			3,253			1,436
Consolidated income tax expense (benefit)	$	19,600		$	(4,515	)	$	5,995
Effective income tax rate by jurisdiction:
United States		(260.0	)%		37.2	%		37.1	%
Foreign		22.4	%		21.6	%		29.7	%
Consolidated effective tax rate		255.8	%		77.2	%		35.0	%

Schedule of reconciliation of the provision for income taxes at the statutory rate to the provision for income taxes at effective rate

        A reconciliation of the provision for income taxes at the statutory rate of 35% to the provision for income taxes at our effective rate is shown below (in thousands):

	Year Ended December 31,
	2015			2014			2013
Income tax expense (benefit) at the statutory rate	$	2,682		$	(2,048	)	$	5,987
Change in taxes resulting from:
Valuation allowances		16,794			1,095			707
State income taxes, net of federal tax effect		654			(2,796	)		(85	)
Foreign income taxes		(1,593	)		(2,253	)		(863	)
Permanent differences		1,335			1,189			797
Uncertain tax positions		(133	)		(112	)		447
Research and development credits		(770	)		(513	)		(676	)
Nondeductible compensation		(20	)		411			—
Share-based compensation		491			469			—
Domestic production activities deduction		—			(5	)		(422	)
Other		160			48			103
Total income tax expense (benefit)	$	19,600		$	(4,515	)	$	5,995

Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities

        The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands):

	As of December 31,
	2015			2014
Deferred tax assets:(1)
U.S. net operating loss carryforwards	$	15,175		$	2,305
Foreign net operating loss carryforwards		767			831
Income tax credit carryforwards		2,969			1,274
Share-based compensation		5,068			6,206
Intangible assets		2,109			11,747
Deferred rent		812			426
Accrued liabilities		10,211			4,765
Cash flow hedges		1,600			1,067
Allowance for doubtful accounts		646			1,379
Other		658			195
Valuation allowances		(19,230	)		(1,903	)
Total deferred tax assets		20,785			28,292
Deferred tax liabilities:(1)
Prepaid expenses		(3,837	)		(1,875	)
Goodwill		(47,343	)		(42,994	)
Property and equipment and software development costs		(15,216	)		(11,324	)
Deferred debt discharge income		(1,336	)		(1,985	)
Total deferred tax liabilities		(67,732	)		(58,178	)
Net deferred tax liability	$	(46,947	)	$	(29,886	)

(1) Temporary differences related to net operating loss carryforwards, income tax credit carryforwards, intangible assets and goodwill as of December 31, 2014 have been reclassified to conform to current year presentation.

Schedule of net deferred tax liability

        The net deferred tax liability is presented on the Consolidated Balance Sheets as follows (in thousands):

	As of December 31,
	2015			2014
Other long-term assets	$	89		$	139
Long-term deferred income tax liability		(47,036	)		(30,025	)
Net deferred tax liability	$	(46,947	)	$	(29,886	)

Schedule of loss carryforwards

The loss carryforwards expire as follows (in thousands):

Calendar Years	Amount
2016 - 2020	$	2,955
2021 - 2025		17,906
2026 - 2030		22,518
2031 - 2035		72,410
Total	$	115,789

Summary of the activity related to gross unrecognized tax benefits excluding interest and penalties

        The following table summarizes the activity related to our gross unrecognized tax benefits excluding interest and penalties (in thousands):

	2015			2014			2013
Unrecognized tax benefits as of January 1	$	5,120		$	5,326		$	4,639
Gross increases for prior year tax positions		206			190			243
Gross decreases for prior year tax positions		—			(60	)		(53	)
Gross increase for current year tax positions		135			197			530
Settlements		—			—			(33	)
Lapse of statute of limitations		(795	)		(533	)		—
Unrecognized tax benefits at December 31	$	4,666		$	5,120		$	5,326