Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

The following is a geographic breakdown of (loss) income before income tax benefits:

	Year Ended December 31,
(In thousands)	2014			2013			2012
United States	$	(62,987	)	$	(137,468	)	$	(36,933	)
Foreign		(5,130	)		(10,878	)		19,473
Total loss before income taxes	$	(68,117	)	$	(148,346	)	$	(17,460	)

The following is a summary of the components of the provision (benefit) for income taxes:

Taxes computed at the statutory federal income tax rate of 35% are reconciled to the provision for income taxes as follows:

	Year Ended December 31,
(In thousands)	2014			2013			2012
United States federal tax at statutory rate		35.0	%		35.0	%		35.0	%
Items affecting federal income tax rate
Non-deductible acquisition and reorganization expenses		0.1	%		(0.2	%)		0.0	%
Research credits		4.6	%		5.0	%		14.5	%
Change in unrecognized tax benefits		0.8	%		(1.1	%)		(6.6	%)
State income taxes, net of federal benefit		3.1	%		3.3	%		5.8	%
Compensation		(1.5	%)		(0.6	%)		(3.9	%)
Meals and entertainment		(1.4	%)		(0.7	%)		(6.1	%)
Impact of foreign operations		(3.7	%)		(1.1	%)		10.7	%
Federal, state and local rate changes		0.4	%		0.7	%		(11.3	%)
Change in unrecognized tax benefit, Coniston		0.0	%		0.0	%		91.4	%
Indemnification asset settlement, Coniston		0.0	%		0.0	%		(28.2	%)
Change in unrecognized tax benefits, Bilateral Advance Pricing Agreement		0.0	%		3.0	%		0.0	%
Bilateral Advance Pricing Agreement impact		0.3	%		(3.2	%)		0.0	%
Non-deductible items		(0.1	%)		(0.1	%)		(0.5	%)
Valuation allowance		(36.2	%)		(9.2	%)		(4.0	%)
True-up of capitalized software deferred tax		0.0	%		0.0	%		(2.3	%)
Other		1.1	%		(0.9	%)		(1.1	%)
Effective rate		2.5	%		29.9	%		93.4	%

Significant components of our deferred tax assets and liabilities consist of the following:

	December 31,			December 31,
(In thousands)	2014			2013
Deferred tax assets
Accruals and reserves, net	$	26,086		$	28,210
Allowance for doubtful accounts		14,159			21,242
Stock-based compensation, net		10,773			7,498
Deferred revenue		17,422			12,636
Net operating loss carryforwards		90,463			90,964
Research and development tax credit		24,313			21,580
AMT credits		5,606			5,250
Other		3,617			4,962
Less: Valuation Allowance		(41,273	)		(14,241	)
Total deferred tax assets		151,166			178,101

Deferred tax liabilities
Prepaid expense		(9,268	)		(11,395	)
Property and equipment, net		(903	)		(852	)
Acquired intangibles, net		(160,130	)		(182,719	)
Total deferred tax liabilities		(170,301	)		(194,966	)
Net deferred tax liabilities	$	(19,135	)	$	(16,865	)

The deferred tax assets (liabilities) are classified in the consolidated balance sheets as follows:

	December 31,			December 31,
(In thousands)	2014			2013
Current deferred tax assets, net	$	35,615		$	55,468
Current deferred tax liabilities, net		(21	)		0
Current deferred tax assets (liabilities), net		35,594			55,468
Non-current deferred tax assets, net		708			7,361
Non-current deferred tax liabilities, net		(55,437	)		(79,694	)
Non-current deferred tax assets (liabilities), net		(54,729	)		(72,333	)
Net deferred tax liabilities	$	(19,135	)	$	(16,865	)

The following table reconciles unrecognized tax benefits:

	Year Ended December 31,
(In thousands)	2014			2013			2012
Beginning balance as of January 1	$	18,283		$	18,140		$	43,284
Increases for tax positions related to the current year		627			1,517			46
Decreases for tax positions related to prior years		(3,239	)		(23	)		(13,944	)
Increases for tax positions related to prior years		173			3,238			656
Decreases relating to settlements with taxing authorities		(384	)		(4,099	)		(11,925	)
Foreign currency translation		(26	)		(394	)		97
Reductions due to lapsed statute of limitations		(120	)		(96	)		(74	)
Ending balance as of December 31	$	15,314		$	18,283		$	18,140

We recognized interest and penalties related to uncertain tax positions in our consolidated statements of operations as follows:

	Year Ended December 31,
(In thousands)	2014			2013			2012
Interest and penalties included in the provision for income taxes	$	(715	)	$	(188	)	$	(2,539	)

The amount of interest and penalties included in our consolidated balance sheets is as follows:

	December 31,		December 31,
(In thousands)	2014		2013
Interest and penalties included in the liability for uncertain tax positions	$	1,295	$	2,011