Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of components of income tax expense

The components of income tax expense for the years ended December 31, 2015, 2016 and 2017 were as follows (in thousands):



	2015			2016			2017

Current income tax expense:
Federal	$	17,910		$	13,518		$	11,989
State	2,322			1,877			1,998
	20,232			15,395			13,987
Deferred tax expense:
Federal	(241		)	(424		)	(2,810		)
State	81			(31		)	316
	(160		)	(455		)	(2,494		)
Income Tax Expense	$	20,072		$	14,940		$	11,493

Schedule of tax effects of principal temporary differences

The tax effects of principal temporary differences are as follows (in thousands):



	2016			2017

Deferred tax assets
Stock option compensation expense	$	1,057		$	415
Allowance for doubtful accounts	3,079			1,569
Accrued vacation and severance	798			679
Deferred rent	—			67
Restricted stock	1,874			922
Investment	168			—
Total deferred tax assets	6,976			3,652
Deferred tax liabilities
Income tax deductible capitalized software development costs	(10,886		)	(6,066		)
Goodwill	(941		)	(1,284		)
Property and equipment	(2,208		)	(1,489		)
Prepaid expenses	(1,716		)	(1,017		)
Investment	—			(77		)
Total deferred tax liabilities	(15,751		)	(9,933		)
Deferred tax liabilities, net	$	(8,775	)	$	(6,281	)

Schedule of difference of income tax expense from the United States Federal income tax rates

Income tax expense differs from the amount of tax determined by applying the United States Federal income tax rates to pretax income and loss due to the application of state apportionment laws, permanent tax differences, and the impact of the change in the federal statutory rate as follows (in thousands):



	2015					2016					2017
	Amount			%		Amount			%		Amount			%

Tax expense at statutory rate	$	18,370		35.00	%	$	13,683		35.00	%	$	11,415		35.00	%
State taxes, net	1,590			3.03	%	1,278			3.27	%	1,626			4.98	%
Permanent differences	278			0.53	%	221			0.56	%	2,060			6.31	%
Change in statutory rate	—			—	%	—			—	%	(3,741		)	(11.47	)%
Other	(166		)	(0.32	)%	(242		)	(0.62	)%	133			0.42	%
	$	20,072		38.24	%	$	14,940		38.21	%	$	11,493		35.24	%