Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):



	Year Ended December 31,						Six Months Ended December 31,				Fiscal Year Ended June 30,
	2013			2012			2011		2010		2011
									(Unaudited)
Current provision:
Federal	$	2		$	187		$	325	$	111	$	62
State	287			200			396		449		988
Foreign	2,454			1,787			329		93		286
	2,743			2,174			1,050		653		1,336
Deferred provision:
Federal	—			(55		)	22		—		—
State	—			(5		)	3		—		—
Foreign	(232		)	(746		)	—		—		—
	(232		)	(806		)	25		—		—
Provision for income taxes	$	2,511		$	1,368		$	1,075	$	653	$	1,336

Components of Income (Loss) From Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes by U.S. and foreign jurisdictions were as follows (in thousands):



	Year Ended December 31,						Six Months Ended December 31,					Fiscal Year Ended June 30,
	2013			2012			2011			2010		2011
										(Unaudited)
United States	$	(35,901	)	$	(7,903	)	$	(1,375	)	$	5,368	$	10,585
Foreign	(35,296		)	(28,077		)	(4,234		)	88		581
Total	$	(71,197	)	$	(35,980	)	$	(5,609	)	$	5,456	$	11,166

Reconciliation of Federal Income Tax Rate

The effective income tax rate differs from the federal statutory income tax rate applied to the income (loss) before provision for income taxes due to the following (in thousands):



	Year Ended December 31,						Six Months Ended December 31,						Fiscal Year Ended June 30,
	2013			2012			2011			2010			2011
										(Unaudited)
Tax computed at U.S. federal statutory rate	$	(24,207	)	$	(12,234	)	$	(1,907	)	$	1,857		$	3,799
State taxes, net of federal benefit	148			329			82			122			250
Tax rate differential for international subsidiaries	14,542			10,743			1,589			(23		)	(47		)
Stock-based compensation	3,447			3,926			978			244			727
Tax credits	(12,529		)	(1,056		)	(378		)	(150		)	(409		)
Tax contingencies	76			452			178			74			171
Non-deductible expenses	550			532			244			120			305
Change in state rate	14			(68		)	8			295			662
Other	242			(697		)	146			379			344
Valuation allowance	20,228			(559		)	135			(2,265		)	(4,466		)
Provision for income taxes	$	2,511		$	1,368		$	1,075		$	653		$	1,336

Reconciliation of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets are shown below (in thousands). A valuation allowance has been recognized to offset our deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized.



	December 31,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	4,306		$	2,647
Deferred revenue	3,739			2,421
Accrued expenses	2,549			1,357
Deferred rent	1,119			322
Credit carryforwards	14,871			2,342
Facility exit obligation	698			1,102
Stock-based compensation	15,464			7,474
Note Hedge and others	48,241			—
Other	1,448			1,367
Total deferred tax assets	92,435			19,032
Less valuation allowance	(25,795		)	(13,270		)
	66,640			5,762
Deferred tax liabilities:
Depreciation	(9,608		)	(5,016		)
Convertible notes	(54,817		)	—
Purchased intangibles	(1,239		)	—
Net deferred tax assets	$	976		$	746

Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits

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



	Year Ended December 31,						Six Months Ended December 31,				Fiscal Year Ended June 30,
	2013			2012			2011		2010		2011
									(Unaudited)
Balance, beginning period	$	1,725		$	710		$	519	$	374	$	374
Tax positions taken in prior period:
Gross increases	333			827			—		—		—
Gross decreases	(14		)	(65		)	—		—		—
Tax positions taken in current period:
Gross increases	2,784			264			191		73		145
Gross decreases	—			—			—		—		—
Lapse of statute of limitations	(18		)	(11		)	—		—		—
Balance, end of period	$	4,810		$	1,725		$	710	$	447	$	519