Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

ncome tax expense (benefit) consisted of the following for the periods shown below:



Year Ended December 31,	2017		2016			2015
Current:
Federal	$	498	$	(515	)	$	—
State	134		(267		)	720
Total current tax expense (benefit)	$	632	$	(782	)	$	720

Deferred:
Federal	$	—	$	(2,589	)	$	1,405
State	—		(857		)	708
Total deferred tax (benefit) expense	$	—	$	(3,446	)	$	2,113
Income tax expense (benefit)	$	632	$	(4,228	)	$	2,833

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income taxes expected at the statutory federal income tax rate and Income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015, is as follows:



Year Ended December 31,	2017			2016				2015
Tax at federal statutory rate	$	(52,089	)	$	(51,072	)		$	(738	)
State tax, net of federal tax benefit	42			(1,028		)		1,277
Stock-based compensation expense	3,171			3,509				549
Research and development tax credits	(5,022		)	(688		)		(1,068		)
Change in valuation allowance	(3,532		)	42,714				2,686
Change in unrecognized tax benefit	2,922			2,817				(62		)
Tax rate change	53,048			—			44,026,000	—
Other	2,092			(480		)		189
Income tax expense (benefit)	$	632		$	(4,228	)		$	2,833

Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 were:



December 31,	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	95,611		$	47,451
Stock-based compensation	18,117			26,838
Reserves and accruals	56,111			18,409
Goodwill	5,666			9,855
Intangible assets	3,364			3,978
Tax credit carryforwards	7,499			2,483
Other	637			82
Total deferred tax assets	187,005			109,096
Valuation allowance	(140,623		)	(75,308		)
Deferred tax assets – net of valuation allowance	$	46,382		$	33,788

Deferred tax liabilities:
Internally developed software	$	(19,340	)	$	(21,436	)
Accrued receivables	(13,838		)	—
Servicing fees	(8,630		)	(6,445		)
Depreciation and amortization	(3,047		)	(5,907		)
Other	(1,527		)	—
Total deferred tax liabilities	$	(46,382	)	$	(33,788	)
Deferred tax asset (liability) – net	$	—		$	—

Changes in Unrecognized Tax Benefit

A reconciliation of the beginning and ending balance of total unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015, is as follows:



Year Ended December 31,	2017		2016		2015
Beginning balance	$	3,246	$	429	$	491
Gross increase (decrease) for tax positions related to prior years	2,330		677		(310		)
Gross increase for tax positions related to the current year	2,208		2,140		248
Ending balance	$	7,784	$	3,246	$	429