INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Schedule of (benefit from) provision for income taxes

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

	2016		2015		2014
Current:
Federal	$	1,087	$	(1,679)	$	(2,853)
State		140		160		11
		1,227		(1,519)		(2,842)
Deferred:
Federal	$	16,291	$	(39,459)	$	80,293
State		6,700		(6,521)		3,895
		22,991		(45,980)		84,188
Total (benefit) provision for income taxes	$	24,218	$	(47,499)	$	81,346

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):

	2016		2015		2014
Tax at federal statutory rate	$	(22,580)	$	(43,133)	$	74,588
State tax, net of federal benefit		(748)		(2,615)		3,903
Research credit		(902)		(438)		—
Stock based compensation		1,435		848		366
Non-deductible meals and entertainment		955		729		440
Non-deductible other expense		1,426		846		2,049
Change in valuation allowance		44,632		(3,736)		—
Total	$	24,218	$	(47,499)	$	81,346

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):

	2016		2015
Deferred tax assets:
Net Operating Losses		6,810	$	6,414
Tax Credit Carryforwards		1,452		753
In-Process Research & Development		180		253
Intangibles		46,184		34,802
Stock-based compensation		4,992		3,312
Reserves and other accruals not currently deductible		17,294		15,016
Total deferred tax assets		76,912		60,550
Valuation allowance for deferred tax assets		(45,206)		(574)
		31,706		59,976
Deferred tax liabilities
Convertible Debt		(31,706)		(36,985)
Net deferred tax asset (liability)	$	-	$	22,991

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 three years ended December 31, 2016 (in thousands):

Unrecognized tax benefits—January 1, 2014	$	3,879
Gross increases—current year tax positions		27
Gross increases—prior year tax positions		1,273
Unrecognized tax benefits—December 31, 2014		5,179
Gross increases—current year tax positions		454
Gross increases—prior year tax positions		53
Unrecognized tax benefits—December 31, 2015	$	5,686
Gross increases—current year tax positions		240
Gross increases—prior year tax positions		8,761
Unrecognized tax benefits— December 31, 2016	$	14,687