Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019 are as follows (in thousands):

	December 31,
	2020			2019
Deferred tax assets:
Accounts receivable	$	832		$	667
Accrued liabilities		8,407			8,083
Equity-based compensation		5,902			5,888
Capitalized costs		578			726
Accrued sales taxes		145			187
Operating lease liabilities		8,828			10,869
State tax credits		3,408			4,027
Foreign subsidiary net operating losses		78			62
Valuation allowance		(3,375	)		(2,886	)
Other		659			479
		25,462			28,102
Deferred tax liabilities:
Intangible assets		7,414			7,548
Depreciation		1,250			1,228
Deferred commissions		2,713			2,326
Operating lease right-of-use assets		8,325			10,223
		19,702			21,325
Net deferred tax assets	$	5,760		$	6,777

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, 2020, 2019 and 2018 are as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Domestic	$	101,681	$	104,878	$	126,542
Foreign		12,095		11,199		9,689
Total	$	113,776	$	116,077	$	136,231

Components of Income Tax Provision

The components of our income tax provision for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

	Year Ended December 31,
	2020			2019			2018
Current:
Federal	$	13,860		$	18,682		$	22,606
State		4,793			5,711			6,182
Foreign		6,847			7,323			7,018
		25,500		$	31,716		$	35,806
Deferred:
Federal		(393	)		(863	)		(3,127	)
State		1,113			(326	)		(674	)
Foreign		316			(212	)		(464	)
		1,036			(1,401	)		(4,265	)
Total	$	26,536		$	30,315		$	31,541

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, 2020, 2019 and 2018:

	Year Ended December 31,
	2020			2019			2018
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Effect of:
State income tax, net of federal benefit		3.9			3.5			3.4
State credit carryforwards		0.5			1.3			0.3
U.S. federal R&D tax credit		(1.9	)		(1.9	)		(1.7	)
Tax Reform		-		-				(0.1	)
Excess benefit of equity compensation		(3.4	)		(0.1	)		(0.6	)
Employee compensation limitation		2.7			2.1			0.9
Global Intangible Low Taxed Income (GILTI)		0.1		-			-
Foreign-derived intangible income (FDII) deduction		(2.7	)		(3.1	)		(1.6	)
Foreign operations		1.0			1.1			1.2
Tax contingencies		1.9			3.7			0.5
Other permanent differences		(0.2	)		(0.6	)		0.1
Change in valuation allowance		0.4			(0.9	)		(0.2	)
Income taxes		23.3	%		26.1	%		23.2	%

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, 2020, 2019 and 2018 (in thousands):

	December 31,
	2020			2019			2018
Unrecognized tax benefits at January 1,	$	(11,239	)	$	(7,113	)	$	(7,419	)
Gross amount of increases in unrecognized tax benefits as a    result of tax positions taken during a prior period		(118	)		(2,428	)		(873	)
Gross amount of decreases in unrecognized tax benefits as a     result of tax positions taken during a prior period		1,598			445			233
Gross amount of increases in unrecognized tax benefits as a    result of tax positions taken during the current period		(3,256	)		(2,489	)		(78	)
Reductions to unrecognized tax benefits relating to    settlements with taxing authorities		-		-				349
Reductions to unrecognized tax benefits as a result of a lapse of    the applicable statute of limitations		211			346			675
Unrecognized tax benefits at December 31,	$	(12,804	)	$	(11,239	)	$	(7,113	)