Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income (Loss) Before Income Taxes

Components of income (loss) before income taxes (in thousands):



	Years Ended December 31,
	2013			2012			2011
United States operations	$	(50,032	)	$	59,807		$	(50,100	)
Foreign operations	(4,055		)	(2,448		)	5,671
Income (loss) before income taxes	$	(54,087	)	$	57,359		$	(44,429	)

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense (benefit) (in thousands):



	Years Ended December 31,
	2013			2012			2011
Current:
United States federal	$	2,460		$	1,372		$	422
State and local	61			(2,957		)	920
Foreign	1,706			(6,221		)	5,314
Total current	4,227			(7,806		)	6,656
Deferred:
United States federal	(1,890		)	22,029			(22,006		)
State and local	51			556			(555		)
Foreign	2,515			(2,261		)	(1,424		)
Total deferred	676			20,324			(23,985		)
Total income tax expense (benefit)	$	4,903		$	12,518		$	(17,329	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from “expected” income tax expense (computed by applying the U.S. federal income tax rate of 35%) due to the following (in thousands):



	Years Ended December 31,
	2013			2012			2011
United States federal tax expense (benefit) at statutory rate	$	(18,930	)	$	20,076		$	(15,550	)
State taxes, net of United States federal tax benefit	(841		)	(1,098		)	1,320
Change in valuation allowance	25,046			2,136			(9,119		)
Non-deductible stock compensation	415			341			571
Impact of non-U.S. jurisdictional tax rate difference	487			313			(368		)
Research and development tax credit	(1,632		)	(1,923		)	(1,372		)
Transfer pricing adjustment	—			—			2,426
Increase (reversal) of unrecognized tax benefits	671			(7,826		)	2,100
Non-U.S. withholding tax	1,805			471			275
Other	(2,118		)	28			2,388
Total income tax expense (benefit)	$	4,903		$	12,518		$	(17,329	)

Schedule of Net Deferred Tax Assets

Net deferred tax assets are comprised of the following (in thousands):



	December 31,
	2013			2012
Deferred tax assets:
United States federal net operating loss carryforwards	$	41,612		$	16,581
Deferred expenses	7,166			8,461
Research and development tax credit carryforwards	23,079			22,101
Alternative minimum tax credit carryforward	3,561			3,698
Net unrealized loss on investments	109			95
Accrued loss on excess office facilities	54			1,340
Stock-based compensation	12,225			13,639
State net operating loss carryforwards	7,392			3,109
Foreign net operating loss carryforwards	37,594			31,087
Deferred revenue	128			357
Equipment, software, and leasehold improvements	2,736			5,042
Intangibles	27			64
Other	4,489			7,769
Gross deferred tax assets	140,172			113,343
Less valuation allowance	128,865			90,799
Gross deferred tax assets, net of valuation allowance	$	11,307		$	22,544
Deferred tax liabilities:
Other intangible assets	$	(3,761	)	$	(688	)
Net unrealized gains and basis differences on investments	(6,912		)	(16,538		)
Other	(560		)	(787		)
Prepaid expenses	(814		)	(1,076		)
Gross deferred tax liabilities	(12,047		)	(19,089		)
Net deferred tax assets (liabilities)	$	(740	)	$	3,455

Schedule of Unrecognized Tax Benefits

Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits (in thousands):



	Years Ended December 31,
	2013			2012			2011
Balance, beginning of year	$	3,978		$	16,721		$	14,033
Increases related to prior year tax positions	—			416			—
Decreases related to prior year tax positions	(125		)	(94		)	(768		)
Settlements with taxing authorities	—			(13,065		)	—
Increases related to current year tax positions	652			—			3,518
Expiration of the statute of limitations	—			—			(62		)
Balance, end of year	$	4,505		$	3,978		$	16,721