Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):



	December 31,
	2017		2016		2015
Beginning balance of unrecognized tax benefits	$	1,248	$	1,132	$	1,019
Gross increases based on tax positions related to current year	633		116		113
Gross increases based on tax positions related to prior year	149		—		—
Settlements with taxing authorities	—		—		—
Expiration of statute of limitations	—		—		—
Ending balance of unrecognized tax benefits	$	2,030	$	1,248	$	1,132

Schedule of Domestic and Foreign Components of Loss before Provision for Income Taxes

For financial reporting purposes, the components of loss from continuing operations before income taxes were as follows (in thousands):



	December 31,
	2017			2016			2015
United States	$	(32,112	)	$	(24,285	)	$	(40,845	)
Foreign	(93,910		)	(45,349		)	(16,760		)
Total	$	(126,022	)	$	(69,634	)	$	(57,605	)

Reconciliation of Income Tax to Expense (Benefit)

A reconciliation of the Company’s income tax benefit from continuing operations compared to the income tax benefit computed at the Federal statutory tax is was as follows (in thousands):



	December 31,
	2017			2016			2015
Income tax at 34% federal statutory rate	$	(42,846	)	$	(23,675	)	$	(19,586	)
State taxes, net of federal benefit	(19		)	(65		)	(691		)
Change in valuation allowance	(11,208		)	16,024			(14,042		)
U.S. statutory tax rate change	36,085			—			—
Valuation allowance adjustment for continuing operations	—			—			15,498
Permanent interest disallowed	(150		)	(1,832		)	375
Foreign rate change - Impact on Deferred Taxes	1,619			521			(1,993		)
Other permanent differences	5,774			1,307			114
Research and development tax credits	(274		)	(145		)	(1,060		)
State tax rate benefit	56			578			2,181
Foreign rate differential	10,636			6,122			2,550
Credits and other	327			217			753
Income tax benefit	$	—		$	(948	)	$	(15,901	)

Schedule of Deferred Tax Assets

Significant components of the Company’s deferred tax assets are presented below. A valuation allowance of $101.1 million and $112.3 million as of December 31, 2017 and 2016, respectively, has been established against the deferred tax assets for which it is more likely than not that the tax benefit will not be realized.



	December 31,
	2017			2016
Deferred tax assets:
Net operating losses	$	87,142		$	90,543
Capitalized research and development	2,155			4,504
Accrued expenses	1,310			1,240
Research and development credits	5,282			4,596
Accrued product returns	—			34
Inventory reserve and UNICAP	—			175
Amortization	630			1,680
Depreciation	163			1,533
Deferred revenue	—			475
Other, net	4,432			7,542
Total deferred tax assets	101,114			112,322
Less valuation allowance	(101,114		)	(112,322		)
Net deferred tax assets	—			—

Deferred tax liabilities:
IPR&D	(17,425		)	(17,425		)
Total deferred tax liabilities	(17,425		)	(17,425		)
Net deferred tax liability	$	(17,425	)	$	(17,425	)