INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of income (loss) before income taxes

The components of income before income taxes are as follows (in thousands):

	Year ended December 31,
	2013			2012			2011
United States	$	57,258		$	20,069		$	3,729
Foreign	(18,250		)	(5,201		)	(1,288		)
Income before income tax	$	39,008		$	14,868		$	2,441

Components of income tax benefit

The components of the income tax benefit (expense) are as follows (in thousands):

	Year ended December 31,
	2013			2012			2011
Current income tax benefit (expense):
Federal	$	226		$	(225	)	$	—
State	—			—			2,660
Foreign	(6,600		)	(4,994		)	(1,946		)
	(6,374		)	(5,219		)	714
Deferred income tax (expense) benefit:
Federal	(16,811		)	—			—
State	(1,192		)	—			—
Foreign	69			11			—
	(17,934		)	11			—
Adjustments to the beginning-of-year valuation allowance	59,352			—			—
Income tax benefit (expense)	$	35,044		$	(5,208	)	$	714

Reconciliation of the statutory U.S. federal tax rate to the effective tax rate

Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows:

	Year ended December 31,
	2013		2012		2011
Statutory U.S. federal income tax rate	35.0	%	34.0	%	34.0	%
State income taxes, net of federal benefit	(1.3	)%	(2.3	)%	8.1	%
State apportionment change	0.3	%	23.8	%	—	%
U.S. federal rate change	(3.6	)%	—	%	—	%
Effect of foreign operations	10.9	%	7.1	%	17.9	%
Subpart F income	15.6	%	—	%	—	%
Nondeductible employee compensation	2.3	%	4.2	%	6.9	%
Loss on stock warrant liability	—	%	—	%	58.4	%
Research tax credits	(3.4	)%	—	%	(34.7	)%
Change in valuation allowance	(146.4	)%	(29.3	)%	(182.2	)%
Sale of New Jersey tax attributes	—	%	—	%	50.8	%
Other	0.8	%	(2.5	)%	11.5	%
Effective tax rate	(89.8	)%	35.0	%	(29.3	)%

Tax loss and tax credit carryforwards

The following table summarizes Company tax loss and tax credit carry forwards at December 31, 2013 (in thousands):

	Related Tax Deduction		Tax Benefit		Expiration Date
Loss carry forwards:
Federal net operating loss (1)	$	79,150	$	27,702	2026 to 2033
Foreign net operating loss	20,595		2,598		n/a
Total loss carry forwards	$	99,745	$	30,300
Tax credit carry forwards:
Research tax credits	n/a		$	10,360	2020 to 2033
Foreign tax credits	n/a		13,830		2020 to 2023
State research tax credits	n/a		2,775		2020 to 2028
Total credit carry forwards	n/a		$	26,965

Significant components of deferred tax assets

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

	December 31,
	2013			2012
Deferred tax asset:
Net operating loss carry forwards	$	6,280		$	36,866
Capitalized technology license	2,519			2,525
Capitalized research expenditures	14,012			2,009
Accruals and reserves	2,172			1,270
Retirement plan	3,315			3,432
Deferred revenue	1,393			2,591
Tax credit carry forwards	26,965			18,612
Stock-based compensation	1,389			1,326
Other	1,329			1,091
	59,374			69,722
Valuation allowance	(12,598		)	(69,711		)
Deferred tax assets	46,776			11
Deferred tax liability:
Subpart F income	(6,070		)	—
Deferred tax liabilities	(6,070		)	—
Net deferred tax assets	$	40,706		$	11