Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Income Tax Contingencies [Table Text Block]

A reserve for an uncertain tax position was recorded during 2016 as a result of a sale of intellectual property during 2016 between the Company's subsidiaries for the following amount (in thousands):



	Uncertain tax positions
Balance at December 31, 2016	$	280
Additions based on tax positions related to the current year	—
Subtractions based on tax positions related to the current year	(35		)
Interest and penalties	8
Balance at December 31, 2017	$	253

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consisted of the following components for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2017		2016			2015
Current income tax expense:
Federal	$	4,680	$	282		$	—
State	236		159			324
Foreign	4,471		6,430			5,021
Total current income tax expense	9,387		6,871			5,345
Deferred income tax expense (benefit):
Federal	1,586		4,021			3,491
State	1,545		418			465
Foreign	613		(355		)	2,991
Total deferred income tax expense (benefit)	3,744		4,084			6,947
Income tax expense	$	13,131	$	10,955		$	12,292

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended December 31, 2017, 2016 and 2015 differs from the amount computed by applying the U.S. federal income tax rate of 35% to pretax income (loss) because of the effect of the following items (in thousands):



	Year Ended December 31,
	2017			2016			2015
Tax expense (benefit) at U.S. federal income tax rate	$	11,243		$	5,364		$	(7,270	)
State income taxes, net of federal income tax effect	1,028			449			500
Federal and state deferred tax rate change	(5,375		)	—			—
Transition tax	5,323			—			—
Effect of non-US operations	(2,143		)	(501		)	(254		)
Nontaxable contingent liability fair value changes and goodwill impairment	237			3,578			13,083
Research and development credit	(38		)	(297		)	(422		)
Change in valuation allowances	2,103			2,206			5,173
Prior year provision to return adjustment	(424		)	(137		)	372
Write-off of deferred taxes and tax receivables	263			—			858
Nondeductible expense and other	914			293			252
Income tax expense (benefit)	$	13,131		$	10,955		$	12,292

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the Company's tax assets and liabilities for financial reporting purposes and the amounts used for income tax return reporting purposes. At December 31, 2017 and 2016, the Company’s deferred tax assets and liabilities consisted of the following (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Inventory reserve	$	700		$	902
Other reserves and allowances	52			4,233
Income tax basis in excess of financial statement basis in intangible assets	1,669			3,394
Deductible stock-based compensation	3,760			4,693
Net operating loss carryforward	13,530			9,496
Tax credit carryforwards	428			2,758
	20,139			25,476
Valuation allowance	(10,711		)	(8,292		)
Total deferred tax assets	9,428			17,184

Deferred tax liabilities:
Prepaid & other expenses	(265		)	(139		)
Fixed assets	(4,946		)	(5,913		)
Intangible assets	(15,953		)	(21,392		)
Total deferred tax liabilities	(21,164		)	(27,444		)

Net deferred tax liability	$	(11,736	)	$	(10,260	)