Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) from continuing operations for the years ended December 31, 2015, 2016 and 2017 consisted of the following:



(in thousands)	2015			2016			2017
Current income tax expense (benefit)
State	$	350		$	896		$	683
Foreign	(163		)	255			96
Total current income tax expense	$	187		$	1,151		$	779

Deferred tax expense (benefit)
Federal	$	6,402		$	13,195		$	(14,813	)
State	1,377			2,677			1,063
Foreign	(42		)	(41		)	(56		)
Total deferred income tax expense (benefit)	7,737			15,831			(13,806		)
Total income tax expense (benefit)	$	7,924		$	16,982		$	(13,027	)

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense (benefit) from continuing operations differed from the amount computed by applying the federal statutory tax rate of 35.0% for the years ended December 31, 2015, 2016 and 2017 due to the following:



(in thousands)	2015			2016			2017
Pretax income (loss) at federal statutory rate	$	6,359		$	14,064		$	(7,666	)
Foreign taxes at different rates from the U.S. rate	77			(68		)	11
State income tax expense, net federal expense	1,156			2,315			1,135
Non-deductible items	366			318			424
Goodwill impairment	—			—			13,953
Purchase price adjustments	—			—			(819		)
Federal tax rate change adjustments	—			—			(19,157		)
Adjustment of prior year deferred taxes	(128		)	257			(832		)
Change in valuation allowance	94			106			(76		)
Other items	—			(10		)	—
Total provision (benefit) for income taxes	$	7,924		$	16,982		$	(13,027	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2016 and 2017 are presented below:



(in thousands)	2016			2017
Deferred tax assets:
Allowance for doubtful accounts	$	402		$	119
Accrued expenses and other current liabilities	684			330
Stock-based compensation	16,194			10,877
Prepaid rent	1,448			1,326
Deferred revenue	899			433
Noncurrent liabilities	337			94
Net operating loss and credit carryforwards	46,030			38,705
	65,994			51,884
Less: valuation allowance	(13,705		)	(10,190		)
Deferred tax assets	52,289			41,694
Deferred tax liabilities:
Intangible assets	91,447			69,943
Property and equipment	7,825			5,465
Software development costs	3,924			3,251
Deferred tax liabilities	103,196			78,659
Net deferred tax liabilities	$	50,907		$	36,965