Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The components of income before income taxes and income tax expense for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands):



	Years ended December 31,
	2017			2016			2015
Income before income taxes:
Domestic	$	2,901		$	13,988		$	18,656
Foreign	16,788			16,046			10,967
Total income before income taxes	$	19,689		$	30,034		$	29,623

Income tax expense (benefit):
Current:
Federal	$	3,210		$	5,511		$	6,802
State and local	256			1,152			1,418
Foreign	3,645			4,885			3,710
Total current	7,111			11,548			11,930
Deferred:
Federal	(241		)	(1,039		)	(198		)
State and local	(176		)	56			23
Foreign	104			(778		)	(921		)
Total deferred	(313		)	(1,761		)	(1,096		)
Total income tax expense	$	6,798		$	9,787		$	10,834

Schedule of effective income tax rate reconciliation

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. The sources and tax effects of the differences are as follows:



	December 31,
	2017		2016		2015
Federal income tax rate	35.0	%	35.0	%	35.0	%
State and local taxes net of federal benefit	0.2		2.4		3.2
Domestic production deduction	(1.1	)	(0.6	)	(0.6	)
Foreign tax rate differential	(8.8	)	(5.8	)	(4.3	)
Permanent differences	(6.2	)	4.8		2.1
Other	(0.9	)	(3.2	)	1.2
Tax Cuts and Jobs Act of 2017	16.3		—		—
Effective tax rate	34.5	%	32.6	%	36.6	%

Schedule of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities are as follows (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Allowance for doubtful accounts	$	559		$	357
Accrued liabilities and other	2,173			3,156
Stock-based compensation expense	599			910
Net federal, state and foreign operating loss carryforwards	1,432			1,292
Foreign tax credit carryforwards	—			1,207
Deferred tax assets	4,763			6,922
Valuation allowance on deferred tax assets	(1,502		)	(1,320		)
Deferred tax liabilities:
Intangible assets, property and equipment, principally due to difference in depreciation and amortization	5,312			7,668
Net deferred tax liabilities	$	(2,051	)	$	(2,066	)