Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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,	2019			2018			2017
Current:
Federal	$	(141	)	$	(57	)	$	498
State	(60		)	100			134
Total current tax expense (benefit)	$	(201	)	$	43		$	632

Deferred:
Federal	$	—		$	—		$	—
State	—			—			—
Total deferred tax expense (benefit)	$	—		$	—		$	—
Income tax expense (benefit)	$	(201	)	$	43		$	632

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, 2019, 2018 and 2017, is as follows:



Year Ended December 31,	2019			2018			2017
Tax at federal statutory rate	$	(6,499	)	$	(26,936	)	$	(52,089	)
State tax, net of federal tax benefit	(60		)	100			42
Stock-based compensation expense	4,773			6,559			3,171
Research and development tax credits	(2,336		)	(7,839		)	(5,022		)
Change in valuation allowance	(802		)	19,140			(3,532		)
Change in unrecognized tax benefit	1,168			3,920			2,922
Tax rate change	—			—			53,048
Non-deductible expenses	3,250			5,143			2,212
Other	305			(44		)	(120		)
Income tax expense (benefit)	$	(201	)	$	43		$	632

Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 were:



December 31,	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	118,090		$	128,193
Stock-based compensation	11,480			11,434
Reserves and accruals	23,008			25,373
Operating lease liabilities	33,824			—
Goodwill	19,818			21,580
Intangible assets	3,074			2,782
Tax credit carryforwards	16,679			14,363
Other	498			908
Total deferred tax assets	226,471			204,633
Valuation allowance	(169,526		)	(169,291		)
Deferred tax assets – net of valuation allowance	$	56,945		$	35,342

Deferred tax liabilities:
Internally developed software	$	(20,225	)	$	(21,813	)
Servicing fees	(4,389		)	—
Depreciation and amortization	—			(4,137		)
Operating lease assets	(28,224		)	—
Change in tax method	(3,988		)	(7,349		)
Other	(119		)	(2,043		)
Total deferred tax liabilities	$	(56,945	)	$	(35,342	)
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, 2019, 2018 and 2017, is as follows:



Year Ended December 31,	2019		2018		2017
Beginning balance	$	13,377	$	7,784	$	3,246
Gross increase for tax positions related to prior years	—		2,744		2,330
Gross increase for tax positions related to the current year	2,621		2,849		2,208
Ending balance	$	15,998	$	13,377	$	7,784