INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES

Schedule of (benefit from) provision for income taxes

The (benefit from) provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2013			2012			2011
Current:
Federal	$	60,874		$	(19	)	$	(466	)
State		3,593			(75	)		858
Foreign		3			3			4
		64,470			(91	)		396
Deferred:
Federal	$	(97,690	)	$	—		$	—
State		(5,512	)		—			—
Foreign		—			—			—
		(103,202	)		—			—
Total (benefit) provision for income taxes	$	(38,733	)	$	(91	)	$	396

Schedule of reconciliation of income taxes at the statutory federal income tax rate to the actual tax rate

A reconciliation of income taxes at the statutory federal income tax rate to the actual tax rate included in the statements of operations is as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011
Tax at federal statutory rate	$	1,603		$	(10,454	)	$	24,893
State tax, net of federal benefit		(3,177	)		(48	)		558
Foreign tax		3			3			4
Research Credit		(258	)		—			—
Net Operating Losses not benefited (benefited)		(17,510	)		9,094			(25,510	)
Federal—AMT		—			(19	)		(466	)
Stock Based Compensation		923			1,038			774
Non deductible meals and entertainment		442			131			17
Non-deductible other expense		(133	)		164			126
Change in Valuation Allowance		(20,626	)		—			—
Total	$	(38,733	)	$	(91	)	$	396

Schedule of significant components of the Company's deferred tax assets

Significant components of the Company's deferred tax assets are as follows (in thousands):

	Year Ended December 31,
	2013			2012
Deferred Tax Assets:
Net operating loss carryforwards	$	4,237		$	21,500
Tax carryforwards		133			4,700
In-process research and development		665			1,100
Deferred revenue		88,248			7,500
Intangibles		1,363			500
Other, net		11,226			7,200
Total deferred tax assets		105,872			42,500
Valuation allowance for deferred tax assets		(2,670	)		(42,500	)
Deferred tax assets, net	$	103,202		$	—

Summary of the activity related to the entity's unrecognized tax benefits

The following table summarizes the activity related to our unrecognized tax benefits for the 2 years ended December 31, 2013 (in thousands):

Unrecognized tax benefits—January 1, 2012	$	3,573
Gross increases—current year tax positions		21
Settlements with taxing authorities		—
Expiration of statute of limitations		—
Unrecognized tax benefits—December 31, 2012		3,594
Gross increases—current year tax positions		174
Gross increases—prior year tax positions		111
Unrecognized tax benefits—December 31, 2013	$	3,879