8.	Income Taxes

The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely.

The Company recorded an income tax provision of $0.1 million for the three months ended June 30, 2015 related to foreign income taxes and state minimum taxes. Based on the available objective evidence during the three months ended June 30, 2015, the Company believes it is more likely than not that the tax benefits of U.S. losses incurred during the three months ended June 30, 2015 may not be realized. Accordingly, the Company did not record the tax benefits of U.S. losses incurred during the three months ended June 30, 2015. The primary difference between the effective tax rate and the local statutory tax rate relates to the valuation allowance on the Company’s U.S. losses, foreign tax rate differences, and amortization of a deferred charge associated with the intercompany transfer of intellectual property from prior periods.

As of June 30, 2015, the total amount of gross unrecognized tax benefits was $2.0 million, all of which would affect the Company’s effective tax rate if recognized before consideration of any valuation allowance. As of June 30, 2015, the Company had an immaterial amount related to the accrual of interest and penalties. During the three months ended June 30, 2015, the Company’s gross unrecognized tax benefits increased by $0.1 million, none of which would affect the Company’s effective tax rate if recognized. The Company does not have any tax positions as of June 30, 2015 for which it is reasonably possible that the total amount of gross unrecognized tax benefits will significantly increase or decrease within the next 12 months.