Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Components of the provision (benefits) for income taxes

The components of the provision for income taxes are summarized below (in thousands):

	Year Ended December 31,
	2018		2017		2016
Current:
Federal	$	—	$	—	$	—
State		5		2		4
Foreign		933		790		729
Total current		938		792		733
Deferred:
Federal		—		—		—
State		—		—		—
Total deferred		—		—		—
Total provision for income taxes	$	938	$	792	$	733

Reconciliation of the effective income tax rates and the U.S. statutory federal income tax rate

	Year Ended December 31,
	2018		2017		2016
Statutory federal income tax rate	21.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefits	—		—		—
Valuation allowance	(2.6)		(139.5)		(7.1)
Rate change	—		100.8		—
Stock-based compensation	0.3		(10.4)		1.2
Foreign tax rate differential	(11.4)		(10.3)		(12.2)
Foreign tax incentives	(2.9)		(7.0)		(13.6)
Dividend from unconsolidated affiliates	—		—		1.5
Foreign income inclusion	2.6		55.6		—
Section 78 gross up	—		11.7		—
Foreign tax credit	—		(30.6)		—
Tax effect in equity method loss or gain from unconsolidated affiliates	3.2		2.9		8.3
Foreign-derived intangible income	(2.4)		—		—
Other	0.1		(0.9)		(0.2)
Effective tax rate	7.9	%	7.3	%	12.9	%

Deferred tax assets and liabilities

Deferred tax assets and liabilities are summarized below (in thousands):

	As of December 31,
	2018		2017
Deferred tax assets:
Net operating loss	$	15,735	$	14,203
Accruals and reserves not yet deductible		2,100		3,133
Credits		1,685		4,809
		19,520		22,145
Deferred tax liabilities:
Valuation of investment portfolio		—		—
		—		—
Net deferred tax assets		19,520		22,145
Valuation allowance		(19,520)		(22,145)
Net deferred tax assets	$	—	$	—

Reconciliation of the beginning and ending amount of the gross unrecognized tax benefit

A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands):

	Year Ended December 31,
	2018	2017	2016
Gross unrecognized tax benefits balance at beginning of the year	$ 14,557	$ 14,557	$ 14,557
Add:
Additions based on tax positions related to the current year	—	—	—
Additions for tax positions of prior years	—	—	—
Less:
Decrease related to lapse of statute of limitations	—	—	—
Gross unrecognized tax benefits balance at end of the year	$ 14,557	$ 14,557	$ 14,557