Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income Before Income Taxes

The components of income before income taxes were as follows:

	Year Ended December 31,
	2013		2012		2011
Ireland	$	16,975	$	7,561	$	6,549
Foreign		9,379		1,754		(2,815	)
Income before income taxes	$	26,354	$	9,315	$	3,734

Components of Provision for Income Taxes

The components of the provision (benefit) for income taxes were as follows:

	Year Ended December 31,
	2013			2012			2011
Current tax provision:
Ireland taxes	$	2,647		$	1,746		$	481
Foreign taxes		(9,360	)		(1,829	)		(114	)
Total current tax provision (benefit)		(6,713	)		(83	)		367
Deferred tax provision (benefit):
Ireland taxes	$	(80	)	$	79		$	1,054
Foreign taxes		2,690			3,911			(556	)
Total deferred tax provision (benefit)		2,610			3,990			498
Total provision for (benefit from) income taxes	$	(4,103	)	$	3,907		$	865

Reconciliation of Income Tax Rate

A reconciliation of the Ireland statutory corporate income tax rate of 12.5% to the Company’s effective income tax rate is as follows:

	Year Ended December 31,
	2013			2012			2011
Ireland statutory corporate income tax rate		12.5	%		12.5	%		12.5	%
Income (loss) of Irish non-trading entities		(0.5	)		(9.9	)		(11.5	)
Foreign rate differential		9.0			5.1			(20.9	)
Uncertain tax positions		(40.4	)		14.8			16.2
Change in deferred tax asset valuation allowance		0.8			17.2			9.8
Permanent differences		2.9			3.5			17.1
Tax credits		(3.1	)		(3.9	)		—
Deferred charge on intercompany transaction		2.7			3.5			—
Other differences		0.5			(0.9	)		—
Effective income tax rate		(15.6	)%		41.9	%		23.2	%

Components of Net Deferred Tax Assets and Related Valuation Allowance

The components of net deferred tax assets and the related valuation allowance were as follows:

	December 31,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	8,694		$	6,394
Deferred revenue		3,165			6,552
Accrued expenses		736			1,233
Reserves and allowances		2,742			3,101
Share-based compensation		2,487			925
Other		512			—
Total deferred tax assets		18,336			18,205
Deferred tax liabilities:
Acquired intangible assets		(1,761	)		(2,426	)
Depreciation and amortization		(8,225	)		(6,745	)
Other		—			(294	)
Total deferred tax liabilities		(9,986	)		(9,465	)
Valuation allowance		(3,023	)		(2,581	)
Net deferred tax assets	$	5,327		$	6,159

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of our unrecognized tax benefits, including those that were recorded against related deferred tax assets rather than as liabilities, but excluding amounts for accrued interest and penalties, is as follows:

	(in thousands)
Unrecognized tax benefits at January 1, 2012	$	16,026
Additions based on tax positions of current year		99
Reductions based on tax positions of prior years		(3,261	)
Reductions based on lapse of statute of limitations		(89	)
Unrecognized tax benefits at December 31, 2012		12,775
Additions based on tax positions of current year		223
Reductions based on lapse of statute of limitations		(11,718	)
Unrecognized tax benefits at December 31, 2013	$	1,280