Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Components of Income Before Income Taxes

The components of income before income taxes consist of the following:



	Year ended December 31,
	2016		2015		2014
Domestic	$	12,652	$	25,045	$	(4,785	)
Foreign	71,232		50,731		42,423
	$	83,884	$	75,776	$	37,638

Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations

The income tax expense consists of the following:



	Year ended December 31,
	2016			2015			2014
Current provision/(benefit):
Domestic	$	7,107		$	9,951		$	(1,069	)
Foreign	18,428			12,022			6,186
	$	25,535		$	21,973		$	5,117
Deferred provision/(benefit):
Domestic	$	(2,506	)	$	3,041		$	535
Foreign	(878		)	(803		)	(459		)
	$	(3,384	)	$	2,238		$	76
Income tax expense	$	22,151		$	24,211		$	5,193

Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes

The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows:



	December 31,
	2016			2015			2014
Expected tax expense	$	29,361		$	26,521		$	12,797
Change in valuation allowance	22			19			64
Impact of tax holiday	(4,027		)	(2,991		)	(3,208		)
Foreign tax rate differential	(2,716		)	(2,797		)	(3,327		)
Deferred tax (benefit)/provision	(878		)	(803		)	(459		)
Unrecognized tax benefits and interest	495			324			(1,846		)
State taxes, net of Federal taxes	202			1,327			593
Non-deductible expenses	144			26			15
Prior year tax expense/(benefit)	—			2,450			—
Other	(452		)	135			564
Tax expense	$	22,151		$	24,211		$	5,193

Summary of Components of Deferred Tax Balances

The components of the deferred tax balances as of December 31, 2016 and 2015 are as follows:



	December 31,
	2016			2015
Deferred tax assets:
Tax credit carry forward	$	4,806		$	5,164
Depreciation and amortization	3,765			3,777
Share-based compensation	10,385			8,099
Accrued employee costs and other expenses	5,130			3,079
Net operating loss carry forwards	1,856			3,746
Unrealized exchange loss	2,099			1,136
Deferred rent	1,307			1,292
Others	484			62
	$	29,832		$	26,355
Valuation allowance	(454		)	(595		)
Deferred tax assets	$	29,378		$	25,760
Deferred tax liabilities:
Unrealized exchange gain	$	1,414		$	848
Intangible assets	13,165			11,163
Deferred tax liabilities:	$	14,579		$	12,011
Net deferred tax assets	$	14,799		$	13,749

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2016 through December 31, 2016



Balance as of January 1, 2016	$	2,797
Increases related to prior year tax positions	156
Decreases related to prior year tax positions	—
Increases related to current year tax positions	178
Decreases related to current year tax positions	—
Effect of exchange rate changes	(44		)
Balance as of December 31, 2016	$	3,087