Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Components of Income Before Income Taxes

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



	Year ended December 31,
	2017		2016		2015
Domestic	$	4,626	$	12,652	$	25,045
Foreign	80,408		71,232		50,731
	$	85,034	$	83,884	$	75,776

Summary of Income Tax Expense

The income tax expense consists of the following:



	Year ended December 31,
	2017			2016			2015
Current provision:
Domestic	$	17,407		$	7,107		$	9,951
Foreign	18,008			18,428			12,022
	$	35,415		$	25,535		$	21,973
Deferred provision/(benefit):
Domestic	$	2,618		$	(2,506	)	$	3,041
Foreign	(1,887		)	(878		)	(803		)
	$	731		$	(3,384	)	$	2,238
Income tax expense	$	36,146		$	22,151		$	24,211

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:



	Year ended December 31,
	2017			2016			2015
Expected tax expense	$	29,762		$	29,361		$	26,521
Change in valuation allowance	(21		)	22			19
Impact of tax holiday	(4,396		)	(4,027		)	(2,991		)
Foreign tax rate differential	(2,616		)	(2,716		)	(2,797		)
Deferred tax (benefit)/provision	(1,887		)	(878		)	(803		)
Unrecognized tax benefits and interest	(3,905		)	495			324
State taxes, net of Federal taxes	339			202			1,327
Non-deductible expenses	825			144			26
Prior year tax expense/(benefit)	—			—			2,450
US Tax Reform Act impact	29,185			—			—
Excess tax benefit for stock-based compensation	(9,797		)	—			—
Other	(1,343		)	(452		)	135
Tax expense	$	36,146		$	22,151		$	24,211

Summary of Components of Deferred Tax Balances

The components of the deferred tax balances as of December 31, 2017 and 2016 are as follows:



	As of
	December 31, 2017			December 31, 2016
Deferred tax assets:
Tax credit carry forward	$	1,474		$	4,806
Depreciation and amortization	2,183			3,765
Stock-based compensation	7,647			10,385
Accrued employee costs and other expenses	3,673			5,130
Net operating loss carry forwards	2,068			1,856
Unrealized exchange loss	252			2,099
Deferred rent	2,064			1,307
Others	1,007			484
	$	20,368		$	29,832
Valuation allowance	(108		)	(454		)
Deferred tax assets	$	20,260		$	29,378
Deferred tax liabilities:
Unrealized exchange gain	$	5,069		$	1,414
Intangible assets	4,648			13,165
Others	1,958			—
Deferred tax liabilities:	$	11,675		$	14,579
Net deferred tax assets	$	8,585		$	14,799

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, 2017 through December 31, 2017



Balance as of January 1, 2017	$	3,087
Increases related to prior year tax positions	—
Decreases related to prior year tax positions	(2,520		)
Increases related to current year tax positions	169
Decreases related to current year tax positions	—
Effect of exchange rate changes	88
Balance as of December 31, 2017	$	824