Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income (Loss) Before Income Taxes

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



	Years ended December 31,
	2017			2016			2015
United States operations	$	(15,731	)	$	(34,100	)	$	(76,450	)
Foreign operations	(4,461		)	(2,897		)	(8,302		)
Income (loss) before income taxes	$	(20,192	)	$	(36,997	)	$	(84,752	)

Schedule of Components of Income Tax Expense (Benefit)

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



	Years ended December 31,
	2017			2016			2015
Current:
United States federal	$	683		$	712		$	176
State and local	42			59			(44		)
Foreign	368			(125		)	136
Total current	1,093			646			268
Deferred:
United States federal	(3,643		)	3			(1,636		)
State and local	2			1			1
Foreign	(230		)	126			77
Total deferred	(3,871		)	130			(1,558		)
Total income tax expense (benefit)	$	(2,778	)	$	776		$	(1,290	)

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,
	2017			2016			2015
United States federal tax expense (benefit) at statutory rate	$	(7,067	)	$	(12,949	)	$	(29,662	)
State taxes, net of United States federal tax expense (benefit)	(273		)	(533		)	(1,240		)
Change in valuation allowance	1,133			13,148			27,821
Non-deductible stock compensation	587			144			218
Impact of non-U.S. jurisdictional tax rate difference	603			335			916
Research and development tax credit	—			(338		)	(243		)
Increase (reversal) of unrecognized tax benefits	—			135			(1,269		)
Basis difference in investment	1,397			538			1,584
Non-U.S. withholding tax	435			452			141
Other	407			(156		)	444
Total income tax expense (benefit)	$	(2,778	)	$	776		$	(1,290	)

Schedule of Net Deferred Tax Assets

Net deferred tax assets, which are recorded at December 31, 2017 using a 21% tax rate in the U.S. following the passage of the Tax Act, are comprised of the following (in thousands):



	December 31,
	2017		2016
Deferred tax assets:
United States federal net operating loss carryforwards	$	59,457	$	93,985
Deferred expenses	926		1,136
Research and development tax credit carryforwards	24,499		24,702
Alternative minimum tax credit carryforward	—		3,561
Net unrealized loss on investments	62		97
Accrued loss on excess office facilities	489		1,178
Stock-based compensation	2,738		4,112
State net operating loss carryforwards	13,746		11,354
Foreign net operating loss carryforwards	32,759		29,863
Deferred revenue	108		156
Equipment, software, and leasehold improvements	3,119		4,636
Intangibles	2		7
Net unrealized gains and basis differences on investments	1,188		1,874



Other	183			1,624
Gross deferred tax assets	139,276			178,285
Less valuation allowance	137,117			176,274
Gross deferred tax assets, net of valuation allowance	$	2,159		$	2,011
Deferred tax liabilities:
Other intangible assets	$	(62	)	$	(50	)
Other	(814		)	(794		)
Prepaid expenses	(254		)	(438		)
Gross deferred tax liabilities	(1,130		)	(1,282		)
Net deferred tax assets (liabilities)	$	1,029		$	729

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,
	2017			2016		2015
Balance, beginning of year	$	493		$	320	$	3,541
Increases related to prior year tax positions	—			38		—
Decreases related to prior year tax positions	(135		)	—		(33		)
Settlements with taxing authorities	—			—		(3,285		)
Increases related to current year tax positions	—			135		97
Balance, end of year	$	358		$	493	$	320