Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of components of income before provision for income taxes

For the years ended December 31, 2016, 2015 and 2014, Income before provision for income taxes, includes the following components (amounts in thousands):

	2016		2015		2014
Domestic income	$	10,997	$	9,663	$	6,764
Foreign income		17,375		13,118		6,222

	$	28,372	$	22,781	$	12,986

Schedule of composition of income tax expense

For the years ended December 31, 2016, 2015 and 2014, income tax expense is composed of the following (amounts in thousands):

	2016			2015			2014
Current income tax expense	$	15,800		$	11,880		$	4,693
Deferred income tax (benefit)		(5,428	)		(2,838	)		(2,264	)

	$	10,372		$	9,042		$	2,429

Schedule of Company's income tax expense and effective tax rates

	2016			2015			2014
Pre-tax book income—US Only		35.0	%		35.0	%		35.0	%
Pre-tax book income—PR Only		21.4	%		20.2	%		16.9	%
Permanent items		3.2	%		4.0	%		3.2	%
Return to provision true-ups—Current/Deferred		–1.1	%		–1.4	%		–3.8	%
Foreign rate differential		2.4	%		2.2	%		3.4	%
Foreign tax credits		–32.0	%		–24.5	%		–31.1	%
Change in valuation allowance		0.0	%		0.0	%		–19.6	%
Foreign withholding taxes		6.0	%		6.7	%		8.9	%
Deferred foreign tax credit offset		0.0	%		–2.2	%		4.0	%
State taxes and state rate change		1.4	%		–0.3	%		1.9	%
UTP adjustment		0.3	%		0.0	%		0.0	%

		36.6	%		39.7	%		18.8	%

Schedule of components of net deferred tax liabilities

Net deferred tax liabilities consist of the following components as of December 31, 2016 and 2015 (amounts in thousands):

	2016			2015
Deferred tax assets:
Allowances for doubtful accounts	$	2,046		$	1,976
Deferred branch tax benefit		15,859			15,813
State tax Federal deduction true-up		70			—
Deferred income		—			29
Fixed assets		43			39
Accrued expenses		1,204			1,440
Foreign tax credit		11,449			5,572
Stock compensation		3,865			3,465
Pension		690			651
Intangibles		2,286			2,376

Other DTA		533			—

		38,045			31,361

Deferred tax liabilities:
Prepaid expenses		(505	)		(196	)
Intangibles		(20,910	)		(23,000	)
Property and equipment		(3,117	)		(3,098	)
Amortization expense		(12,704	)		(9,715	)

Total deferred tax liabilities		(37,236	)		(36,009	)

	$	809		$	(4,648	)

Schedule of classification of deferred tax amounts

The deferred tax amounts mentioned above have been classified on the accompanying consolidated balance sheets at December 31, 2016 and 2015 as follows (amounts in thousands):

	2016		2015
Non-current assets	$	18,638	$	13,280


Non-current liabilities	$	17,829	$	17,928