Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes by Jurisdiction

Income before income taxes by jurisdiction was as follows (in thousands):

	Years ended December 31,
	2019		2018		2017
U.S.	$	10,237	$	21,250	$	17,531
Canada	(835)		15,212		16,362
Total	$	9,402	$	36,462	$	33,893

Difference between the Federal Corporate Tax Rate and the Effective Tax Rate

The difference between the Federal corporate tax rate and the effective tax rate is comprised of the following (in thousands). In 2019, we recast certain 2018 and 2017 income tax expense components related to stock-based compensation.

	Years ended December 31,
	2019					2018					2017
Income tax provision computed at US federal statutory rate	$	1,974		21.0	%	$	7,657		21.0	%	$	11,859		35.0	%
Canadian rate differential	(26)			(0.3)		895			2.4		(1,398)			(4.1)
State and local income taxes, net of federal income taxes	512			5.4		916			2.5		626			1.9
Global Intangible Low Taxed Income, net deductions	—			—		1,573			4.3		—			—
U.S. Tax Credits	—			—		(1,528)			(4.2)		—			—
Stock-based compensation	594			6.3		(450)			(1.2)		(946)			(2.8)
Change in ASC 740-10 positions (net)	(1)			—		19			0.1		(3)			—
Rate changes	30			0.3		(10)			—		1,578			4.6
Tax on repatriation	—			—		118			0.3		1,767			5.2
Other, net	408			4.4		521			1.4		421			1.2
Total income tax expense	$	3,491		37.1	%	$	9,711		26.6	%	$	13,904		41.0	%
Effective income tax rate	37.1		%			26.6		%			41.0		%

Income Tax Provision (Benefit) as Set Forth in the Consolidated Statements of Income

Income tax provision (benefit) as set forth in the Consolidated Statements of Comprehensive Income consisted of the following components (in thousands):

	Years ended December 31,
	2019		2018		2017
Current taxes:
U.S. Federal	$	424	$	5,949	$	1,122
State and local	350		1,477		662
Foreign	(189)		4,034		4,578
Total current taxes	585		11,460		6,362
Deferred taxes:
U.S. Federal	2,619		(1,853)		7,569
State and local	222		(169)		22
Foreign	65		273		(49)
Total deferred taxes	2,906		(1,749)		7,542
Total income tax expense	$	3,491	$	9,711	$	13,904

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below (in thousands). We recast December 31, 2018 deferred tax balances related to deferred rent and leases following our adoption of ASU 2016-02, Leases, in 2019.

	As of December 31,
	2019		2018
Deferred tax assets:
Stock-based compensation expense	$	2,222	$	3,137
Deferred rent	2,172		2,369
Compensation and benefits payable	1,938		2,606
Federal unrecognized tax benefit	38		51
Other	(23)		4
Total deferred tax assets	6,347		8,167
Deferred tax liabilities:
Property and equipment	(359)		(620)
Intangibles	(911)		(448)
Unrealized gains on investments	(833)		(17)
Leases	(2,028)		(1,980)
Total deferred tax liabilities	(4,131)		(3,065)
Net deferred tax assets	$	2,216	$	5,102

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in recorded uncertain tax positions during the years ended December 31, 2019 and 2018 is as follows (in thousands):

Balance at December 31, 2017	$	160
Additions for tax positions related to the current year	28
Reductions for tax positions related to prior years	(4)
Balance at December 31, 2018	184
Additions for tax positions related to the current year	2
Reductions for tax positions related to prior years	(2)
Balance at December 31, 2019	$	184