Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Deferred Tax Assets and Liabilities

We present below significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):

	December 31,
	2022			2021
Deferred tax assets:
Accounts receivable	$	1,321		$	570
Accrued liabilities		9,208			9,273
Equity-based compensation		9,832			7,763
Capitalized costs		27,516			515
Accrued sales taxes		190			196
Operating lease liabilities		2,974			4,593
State tax credits		2,700			4,521
Tax credit - foreign		3,108			1,238
Valuation allowance		(2,735	)		(4,403	)
Other		279			531
		54,393			24,797
Deferred tax liabilities:
Intangible Assets		7,428			7,380
Depreciation		580			666
Deferred commissions		6,408			4,763
Operating lease right-of-use assets		2,771			4,338
		17,187			17,147
Net deferred tax assets	$	37,206		$	7,650

Components of Income from Domestic and Foreign Operations Before Income Tax Expense

We present below income from domestic and foreign operations before income tax expense for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Domestic	$	139,217	$	120,565	$	101,681
Foreign		18,904		13,507		12,095
Total	$	158,121	$	134,072	$	113,776

Components of Income Tax Provision

The components of our income tax provision for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands):

	Year Ended December 31,
	2022			2021			2020
Current:
Federal	$	42,198		$	14,042		$	13,860
State		11,183			5,188			4,793
Foreign		5,492			6,309			6,847
	$	58,873		$	25,539		$	25,500
Deferred:
Federal		(22,383	)		(427	)		(393	)
State		(5,200	)		(531	)		1,113
Foreign		(2,128	)		(981	)		316
		(29,711	)		(1,939	)		1,036
Total	$	29,162		$	23,600		$	26,536

Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates

We present below a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
	2022			2021			2020
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Effect of:
State income tax, net of federal benefit		3.6			3.6			3.9
State credit carryforwards		1.2			(0.8	)		0.5
U.S. federal R&D tax credit		(1.8	)		(1.8	)		(1.9	)
Excess benefit of equity compensation		(4.8	)		(4.9	)		(3.4	)
Employee compensation limitation		3.7			3.4			2.7
Global Intangible Low Taxed Income (GILTI)		0.1			0.2			0.1
Foreign-derived intangible income (FDII) deduction		(3.3	)		(3.1	)		(2.7	)
Foreign operations		1.0			(0.7	)		1.0
Tax contingencies		(1.3	)		(0.3	)		1.9
Other permanent differences		0.3			0.3			(0.2	)
Change in valuation allowance		(1.3	)		0.7			0.4
Income taxes		18.4	%		17.6	%		23.3	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2022, 2021 and 2020 (in thousands):

	December 31,
	2022			2021			2020
Unrecognized tax benefits at January 1,	$	(13,186	)	$	(12,804	)	$	(11,239	)
Gross amount of increases in unrecognized tax benefits as a    result of tax positions taken during a prior period		(199	)		(408	)		(118	)
Gross amount of decreases in unrecognized tax benefits as a     result of tax positions taken during a prior period		2,583			147			1,598
Gross amount of increases in unrecognized tax benefits as a    result of tax positions taken during the current period		(1,787	)		(3,117	)		(3,256	)
Reductions to unrecognized tax benefits relating to    settlements with taxing authorities		-			148		-
Reductions to unrecognized tax benefits as a result of a lapse of    the applicable statute of limitations		2,057			2,848			211
Unrecognized tax benefits at December 31,	$	(10,532	)	$	(13,186	)	$	(12,804	)