Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Expense (Benefit) from Continuing Operations

Income tax benefit consisted of the following (in thousands):



	Years ended December 31,
	2015			2014			2013
Current:
U.S. federal	$	7,470		$	6,306		$	4,175
State	514			210			41
Total current expense	7,984			6,516			4,216
Deferred:
U.S. federal	(12,004		)	(9,800		)	(10,902		)
State	(538		)	(58		)	(699		)
Foreign	(65		)	—			—
Total deferred benefit	(12,607		)	(9,858		)	(11,601		)
Income tax benefit	$	(4,623	)	$	(3,342	)	$	(7,385	)

Income Tax Expense (Benefit) from Continuing Operations Differed from Amount Computed by Applying Statutory Federal Income Tax Rate

Income tax benefit differed from the amount computed by applying the statutory federal income tax rate of 35% as follows (in thousands):



	Years ended December 31,
	2015			2014			2013
Income tax benefit at the statutory federal income tax rate	$	(6,072	)	$	(3,110	)	$	(11,566	)
State income taxes, net of federal benefit	(15		)	99			(363		)
Deductible domestic manufacturing costs	(787		)	(594		)	(395		)
Non-deductible compensation	27			569			221
Non-deductible acquisition-related transaction costs (see Note 3)	2,524			—			—
Non-deductible loss on derivative instrument (the Warrant, see Note 10)	—			—			4,078
Change in liabilities for uncertain tax positions	—			(72		)	(201		)
Change in valuation allowance on unrealized capital losses	(223		)	(117		)	1,108
Other	(77		)	(117		)	(267		)
Income tax benefit	$	(4,623	)	$	(3,342	)	$	(7,385	)

Deferred Tax Assets and Liabilities

The tax effect of temporary differences and net operating loss carryforwards that gave rise to the Company’s deferred tax assets and liabilities were as follows (in thousands):



	December 31,
	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	182,599		$	199,635
Accrued compensation	12,519			1,151
Deferred revenue	3,845			2,738
Tax credit carryforwards	10,797			10,370
Stock-based compensation	8,416			6,800
Basis difference in discontinued E-Commerce business	33,871			—
Other, net	6,720			5,471
Total gross deferred tax assets	258,767			226,165
Valuation allowance	(217,452		)	(211,865		)
Deferred tax assets, net of valuation allowance	41,315			14,300
Deferred tax liabilities:
Depreciation and amortization	(140,035		)	(28,815		)
Discount on Notes	(4,422		)	(5,767		)
Other, net	(378		)	—
Total gross deferred tax liabilities	(144,835		)	(34,582		)
Net deferred tax liabilities	$	(103,520	)	$	(20,282	)

Changes in Valuation Allowance for Deferred Tax Assets

The changes in the valuation allowance for deferred tax assets are shown below (in thousands):



	Years ended December 31,
	2015		2014
Balance at beginning of year	$	211,865	$	235,730
Net changes to deferred tax assets, subject to a valuation allowance	5,587		(23,865		)
Balance at end of year	$	217,452	$	211,865

Reconciliation of Unrecognized Tax Benefit Balances

A reconciliation of the unrecognized tax benefit balances is as follows (in thousands):



	Years ended December 31,
	2015			2014			2013
Balance at beginning of year	$	18,403		$	18,537		$	19,088
Gross increases for tax positions of prior years	2,708			126			219
Gross decreases for tax positions of prior years	(9		)	(199		)	(101		)
Gross increases for tax positions of current year	751			—			—
Settlements	(112		)	(61		)	(562		)
Lapse of statute of limitations	—			—			(107		)
Balance at end of year	$	21,741		$	18,403		$	18,537