Income Taxes (Tables)

The provision for income taxes consists of the following:

The difference between the Company’s reported provision for income taxes and the U.S. federal statutory rate of 35% is as follows:

	Year Ended December 31,
		2016			2015			2014

U.S. federal tax at statutory rate		35.0		%	35.0		%	35.0		%
State and local taxes - net of federal benefit		2.9			3.4			4.2
Credits and deductions related to research activities		(1.3	)		(1.3	)		(1.7	)
Foreign rate differential benefit		(2.3	)		(2.0	)		(0.6	)
Other, net		(0.2	)		—			—
Provision for income taxes		34.1		%	35.1		%	36.9		%

The following is a summary of the Company’s net deferred tax assets:

	As of December 31,
		2016			2015
	(In thousands)
Deferred tax assets
U.S. net operating loss carryforwards	$	1,909		$	2,580
Capital loss carryforwards		7,235			7,294
Stock compensation expense		11,307			9,115
Other		1,468			3,745
Total deferred tax assets		21,919			22,734
Valuation allowance		(7,235	)		(7,294	)
Net deferred tax assets		14,684			15,440
Deferred tax liabilities
Depreciation and amortization		(1,456	)		(1,953	)
Capitalized software development costs		(4,923	)		(4,344	)
Intangible assets		(1,037	)		(1,310	)
Deferred tax assets, net	$	7,268		$	7,833

A summary of the changes in the valuation allowance is as follows:

	Year Ended December 31,
		2016			2015			2014
	(In thousands)
Valuation allowance at beginning of year	$	7,294		$	7,428		$	7,743
(Decrease) to valuation allowance attributable to:
Current year income		—			—			(101	)
State net operating loss		—			—			(155	)
Other changes		(59	)		(134	)		(59	)
Valuation allowance at end of year	$	7,235		$	7,294		$	7,428

A reconciliation of the unrecognized tax benefits is as follows:

	Year Ended December 31,
		2016			2015		2014
	(In thousands)
Balance at beginning of year	$	265		$	265	$	265
Reductions for tax positions of prior years		(236	)		—		—
Balance at end of year	$	29		$	265	$	265