Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

For the years ended December 31, 2017, 2016 and 2015, income before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands):



	2017		2016		2015
Domestic	$	14,531	$	6,174	$	9,470
Foreign	21,350		19,212		21,730
Total	$	35,881	$	25,386	$	31,200

Schedule of Components of Income Tax Expense (Benefit)

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



	2017			2016			2015
Current expense (benefit):
Federal	$	3,849		$	1,933		$	(17	)
State	645			492			747
Foreign	5,168			3,802			3,218
Total current expense	9,662			6,227			3,948

Deferred expense (benefit):
Federal	(314		)	(144		)	3,250
State	(216		)	(195		)	294
Foreign	(774		)	(623		)	(94		)
Total deferred (benefit) expense	(1,304		)	(962		)	3,450

Total income tax expense	$	8,358		$	5,265		$	7,398

Schedule of Effective Income Tax Rate Reconciliation

The difference between the income tax expense reported and amounts computed by applying the statutory federal rate of 35.0% to pretax income for the years ended December 31, 2017, 2016 and 2015, consisted of the following (in thousands):



	2017			2016			2015
Computed federal income tax expense at statutory rate of 35%	$	12,559		$	8,885		$	10,920
State income taxes	279			193			698
Tax credits	(1,377		)	(1,164		)	(1,019		)
Production activity deduction	—			(53		)	—
Foreign tax rate differential	(3,329		)	(3,717		)	(3,564		)
Uncertain tax positions	(19		)	597			536
Deferred compensation insurance assets	(479		)	(307		)	182
Transaction-related expenses	90			274			—
U.S. transition tax	10,612			—			—
TCJA remeasurement of deferred taxes	(8,383		)	—			—
Share-based payments	(2,264		)	—			—
Bargain purchase gain	(1,570		)	—			—
In-process research and development	1,486			—			—
Other — including the effect of graduated rates	753			557			(355		)
Total income tax expense	$	8,358		$	5,265		$	7,398

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31, 2017 and 2016, consisted of the following temporary differences and carry-forward items (in thousands):



	2017			2016
Deferred income tax assets:
Allowance for uncollectible accounts receivable	$	467		$	645
Accrued compensation expense	5,154			6,203
Inventory differences	2,505			1,065
Net operating loss carryforwards	15,741			27,742
Deferred revenue	58			73
Stock-based compensation expense	2,281			2,738
Federal research and development credit carryforward	—			3,524
Foreign tax credits	—			364
Other	8,986			6,984
Total deferred income tax assets	35,192			49,338

Deferred income tax liabilities:
Prepaid expenses	(930		)	(782		)
Property and equipment	(20,352		)	(25,108		)
Intangible assets	(28,588		)	(35,773		)
Other	(1,830		)	(1,480		)
Total deferred income tax liabilities	(51,700		)	(63,143		)
Valuation allowance	(4,422		)	(3,786		)
Net deferred income tax assets (liabilities)	$	(20,930	)	$	(17,591	)

Reported as:
Deferred income tax assets - Current	$	—		$	8,219
Deferred income tax assets - Long-term	2,359			171
Deferred income tax liabilities - Long-term	(23,289		)	(25,981		)
Net deferred income tax liabilities	$	(20,930	)	$	(17,591	)

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits for the years ended December 31, 2017, 2016 and 2015, consisted of the following (in thousands):



Tabular Roll-forward	2017			2016			2015

Unrecognized tax benefits, opening balance	$	2,549		$	1,982		$	1,736
Gross increases in tax positions taken in a prior year	80			77			187
Gross increases in tax positions taken in the current year	403			856			763
Lapse of applicable statute of limitations	(283		)	(366		)	(704		)
Unrecognized tax benefits, ending balance	$	2,749		$	2,549		$	1,982