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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Before Income Taxes | The components of income before income taxes are as follows:
|  | For the Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (Amounts in thousands) |
Domestic |  | $ | (5,432 | ) |  | $ | (73 | ) |  | $ | (6,709 | )
Foreign |  |  | 31,583 |  |  |  | 21,509 |  |  |  | 13,957 |
Income before income taxes |  | $ | 26,151 |  |  | $ | 21,436 |  |  | $ | 7,248 |
Income Tax Provision (Benefit) | The components of the income tax provision (benefit) are as follows:
|  | For the Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (Amounts in thousands) |
Components of the income tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 8,290 |  |  | $ | 4,354 |  |  | $ | 3,624 |
Deferred |  |  | (5,287 | ) |  |  | 465 |  |  |  | (24,729 | )
Equity |  |  | 1,737 |  |  |  | — |  |  |  | — |
Total |  | $ | 4,740 |  |  | $ | 4,819 |  |  | $ | (21,105 | )
Jurisdictional components of the income tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (965 | ) |  | $ | (393 | ) |  | $ | (24,012 | )
State |  |  | (1,764 | ) |  |  | 718 |  |  |  | (438 | )
Foreign |  |  | 7,469 |  |  |  | 4,494 |  |  |  | 3,345 |
Total |  | $ | 4,740 |  |  | $ | 4,819 |  |  | $ | (21,105 | )
Consolidated Deferred Tax Assets (Liabilities) |
|  | December 31, |
|  | 2019 |  |  | 2018 |
|  | (Amounts in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Temporary timing differences: |  |  |  |  |  |  |  |
Stock-based compensation expense |  | $ | 2,922 |  |  | $ | 2,874 |
Contingent consideration |  |  | 2,206 |  |  |  | 2,263 |
Operating leases |  |  | 7,295 |  |  |  | — |
Accrued bonus |  |  | 1,379 |  |  |  | 3 |
Other |  |  | 4,994 |  |  |  | 3,585 |
Total temporary timing differences |  |  | 18,796 |  |  |  | 8,725 |
Net operating loss carryforwards |  |  | 221 |  |  |  | — |
Tax business credits carryforwards |  |  | 924 |  |  |  | 2,004 |
Total deferred tax assets |  |  | 19,941 |  |  |  | 10,729 |
Less: valuation allowance |  |  | (6 | ) |  |  | (131 | )
Net deferred tax assets |  |  | 19,935 |  |  |  | 10,598 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Goodwill |  |  | (1,288 | ) |  |  | (1,076 | )
Fixed assets |  |  | (1,650 | ) |  |  | (956 | )
Acquired intangible assets |  |  | (26,811 | ) |  |  | (26,903 | )
Operating lease right of use assets |  |  | (6,144 | ) |  |  | — |
Conversion option on convertible notes |  |  | (11,066 | ) |  |  | (2,394 | )
Total deferred tax liabilities |  |  | (46,959 | ) |  |  | (31,329 | )
Total net deferred tax liabilities |  | $ | (27,024 | ) |  | $ | (20,731 | )
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate | The reconciliation of the federal statutory rate to the effective income tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows:
|  | For the Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | Amount |  |  | % |  |  | Amount |  |  | % |  |  | Amount |  |  | % |
|  | (Amounts in thousands, except percentages) |
Income before income taxes |  | $ | 26,151 |  |  |  |  |  |  | $ | 21,436 |  |  |  |  |  |  | $ | 7,248 |  |  |  |  |
Expected tax at statutory rate |  |  | 5,492 |  |  |  | 21.0 | % |  |  | 4,502 |  |  |  | 21.0 | % |  |  | 2,537 |  |  |  | 35.0 | %
Adjustments due to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Difference between U.S. and foreign tax |  |  | 436 |  |  |  | 1.7 | % |  |  | 345 |  |  |  | 1.6 | % |  |  | (1,797 | ) |  |  | (24.8 | %)
State income and franchise tax |  |  | (179 | ) |  |  | (0.7 | %) |  |  | 91 |  |  |  | 0.4 | % |  |  | (307 | ) |  |  | (4.2 | %)
Business tax credits |  |  | (2,746 | ) |  |  | (10.5 | %) |  |  | (1,760 | ) |  |  | (8.2 | %) |  |  | (708 | ) |  |  | (9.8 | %)
Permanent differences: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation expense |  |  | (1,877 | ) |  |  | (7.2 | %) |  |  | (1,213 | ) |  |  | (5.7 | %) |  |  | (946 | ) |  |  | (13.1 | %)
Transaction costs |  |  | — |  |  |  | 0.0 | % |  |  | — |  |  |  | 0.0 | % |  |  | 1,232 |  |  |  | 17.0 | %
U.S. taxation of foreign earnings |  |  | 2,227 |  |  |  | 8.5 | % |  |  | 2,190 |  |  |  | 10.2 | % |  |  | — |  |  |  | 0.0 | %
Executive compensation |  |  | 841 |  |  |  | 3.2 | % |  |  | 367 |  |  |  | 1.7 | % |  |  | 265 |  |  |  | 3.7 | %
Other |  |  | 92 |  |  |  | 0.4 | % |  |  | 97 |  |  |  | 0.5 | % |  |  | 205 |  |  |  | 2.8 | %
Change in U.S. federal tax rates |  |  | — |  |  |  | 0.0 | % |  |  | — |  |  |  | 0.0 | % |  |  | (12,839 | ) |  |  | (177.1 | %)
Change in U.S. state tax rates |  |  | — |  |  |  | 0.0 | % |  |  | 748 |  |  |  | 3.5 | % |  |  | (151 | ) |  |  | (2.1 | %)
Change in Netherlands tax rate |  |  | (193 | ) |  |  | (0.7 | % ) |  |  | (388 | ) |  |  | (1.8 | %) |  |  | — |  |  |  | 0.0 | %
Transition tax |  |  | — |  |  |  | 0.0 | % |  |  | (1,338 | ) |  |  | (6.2 | %) |  |  | 3,266 |  |  |  | 45.1 | %
Uncertain tax provisions |  |  | 1,069 |  |  |  | 4.1 | % |  |  | 1,021 |  |  |  | 4.8 | % |  |  | 241 |  |  |  | 3.3 | %
Change in valuation allowance |  |  | (125 | ) |  |  | (0.5 | % ) |  |  | 125 |  |  |  | 0.6 | % |  |  | (12,164 | ) |  |  | (167.8 | %)
Return to provision adjustments |  |  | (79 | ) |  |  | (0.3 | % ) |  |  | 33 |  |  |  | 0.2 | % |  |  | (161 | ) |  |  | (2.2 | %)
Other |  |  | (218 | ) |  |  | (0.8 | % ) |  |  | (1 | ) |  |  | (0.1 | %) |  |  | 222 |  |  |  | 3.0 | %
Income tax provision (benefit) |  | $ | 4,740 |  |  |  | 18.1 | % |  | $ | 4,819 |  |  |  | 22.5 | % |  | $ | (21,105 | ) |  |  | (291.2 | %)
Summary of Tax Returns Periods Subject to Examination by Federal, State and International Taxing Authorities | The Company’s tax returns are subject to examination by federal, state and international taxing authorities for the following periods:
Jurisdiction |  | Fiscal Years Subject to Examination |
United States – federal and state |  |  | 2016 - 2019 |
Sweden |  |  | 2012 - 2019 |
Germany |  |  | 2017 - 2019 |
Netherlands |  |  | 2013 - 2019 |
Reconciliation of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
|  | For the Years Ended December 31, |
|  | 2019 |  |  | 2018 |
|  | (Amounts in thousands) |
Balance of gross unrecognized tax benefits, beginning of period |  | $ | 2,852 |  |  | $ | 1,806 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period |  |  | 602 |  |  |  | 1,062 |
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in the prior period |  |  | (16 | ) |  |  | — |
Gross amounts of decrease due to release |  |  | (16 | ) |  |  | (16 | )
Balance of gross unrecognized tax benefits, end of period |  | $ | 3,422 |  |  | $ | 2,852 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 + Details
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- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 + Details
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