Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The components of pretax income (loss) from continuing operations for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):



	Year Ended December 31,
	2017		2016			2015
United States	$	30,095	$	(119,095	)	$	(98,181	)
International	6,050		(52,432		)	1,924
Income (loss) before provision (benefit) for income taxes	$	36,145	$	(171,527	)	$	(96,257	)

Provision (benefit) for income taxes [Table Text Block]

The provision (benefit) for income taxes for the years ended December 31, 2017, 2016 and 2015 was allocated between continuing operations and discontinued operations as follows (in thousands):



	Year Ended December 31,
	2017		2016			2015
Continuing Operations	$	7,544	$	(5,318	)	$	(23,010	)
Discontinued Operations	—		2,771			51,893
Total	$	7,544	$	(2,547	)	$	28,883

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes from continuing operations for the years ended December 31, 2017, 2016 and 2015 consisted of the following components (in thousands):



	Year Ended December 31,
	2017			2016			2015
Current taxes:
U.S. federal	$	(120	)	$	(1,093	)	$	(23,913	)
State	191			912			(2,613		)
International	6,870			5,311			14,558
Total current taxes	6,941			5,130			(11,968		)
Deferred taxes:
U.S. federal	(1,335		)	(4,262		)	(8,936		)
State	50			(11		)	4,324
International	1,888			(6,175		)	(6,430		)
Total deferred taxes	603			(10,448		)	(11,042		)
Provision (benefit) for income taxes	$	7,544		$	(5,318	)	$	(23,010	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The items accounting for differences between the income tax provision (benefit) from continuing operations computed at the U.S. federal statutory rate and the provision (benefit) for income taxes for the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015
U.S. federal income tax provision (benefit) at statutory rate	$	12,651		$	(60,035	)	$	(33,690	)
Foreign income and losses taxed at different rates ⁽¹⁾	4,524			9,410			3,297
State income taxes, net of federal benefits, and state tax credits	(4,980		)	(4,694		)	(16,382		)
Change in valuation allowances	(36,057		)	13,797			43,782
Effect of income tax rate changes on deferred items ⁽²⁾	20,466			7,135			(117		)
Tax effects of intercompany transactions	3,332			853			12,448
Adjustments related to uncertain tax positions	1,824			(4,899		)	(15,032		)
Non-deductible stock-based compensation expense	5,002			6,724			5,143
Tax shortfalls on stock-based compensation awards ⁽³⁾	4,290			12,585			—
Non-deductible (or non-taxable) change in fair value of investment	—			4,484			(334		)
Federal research and development credits	(7,862		)	(8,547		)	(14,636		)
Tax effects of income (losses) from forgiveness of intercompany liabilities	(2,494		)	15,187			—
Deductions for investments in subsidiaries that have ceased operations	—			(645		)	(4,924		)
Non-taxable gains on business dispositions	—			(3,481		)	(5,070		)
Non-deductible or non-taxable items	6,848			6,808			2,505
Provision (benefit) for income taxes	$	7,544		$	(5,318	)	$	(23,010	)

(1)

Tax rates in foreign jurisdictions were generally lower than the U.S. federal statutory rate through December 31, 2017. This results in an adverse impact to the provision (benefit) for income taxes in this rate reconciliation for the years ended December 31, 2017, 2016 and 2015, prior to the impact of valuation allowances, due to the net pretax losses from continuing operations in certain foreign jurisdictions with lower tax rates.

(2)

The effect of income tax rate changes on deferred items for the year ended December 31, 2017 is primarily related to the U.S. tax reform legislation that was signed into law on December 22, 2017, which included a reduction of the U.S. Federal income tax rate to 21 percent. That rate reduction did not impact the Company's provision for income taxes for the year ended December 31, 2017 due to the valuation allowance against the Company's U.S. net deferred tax assets.


(3)	The Company adopted the guidance in ASU 2016-09 on January 1, 2016. Under that guidance, all income tax effects related to settlements of share-based payment awards are reported in earnings as an increase or decrease to income tax expense (benefit), net.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The deferred income tax assets and liabilities consisted of the following components as of December 31, 2017 and 2016 (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Accrued expenses and other liabilities	$	36,786		$	47,144
Stock-based compensation	3,720			6,772
Net operating loss and tax credit carryforwards	208,040			192,381
Intangible assets, net	23,722			11,854
Investments	814			1,080
Unrealized foreign currency exchange losses	2,771			9,987
Other	687			1,155
Total deferred tax assets	276,540			270,373
Less valuation allowances	(238,702		)	(220,611		)
Deferred tax assets, net of valuation allowance	37,838			49,762
Deferred tax liabilities:
Prepaid expenses and other assets	(10,011		)	(6,538		)
Property, equipment and software, net	(11,315		)	(22,292		)
Convertible senior notes	(2,773		)	(4,529		)
Deferred revenue	(10,436		)	(12,966		)
Total deferred tax liabilities	(34,535		)	(46,325		)
Net deferred tax asset (liability)	$	3,303		$	3,437

Summary of Income Tax Contingencies

The following table summarizes activity related to the Company's gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2017			2016			2015
Beginning Balance	$	80,081		$	79,637		$	98,321
Increases related to prior year tax positions	960			1,708			—
Decreases related to prior year tax positions	(1,196		)	(3,154		)	(25,702		)
Increases related to current year tax positions	9,571			11,443			10,590
Decreases based on settlements with taxing authorities	—			(3,176		)	—
Decreases due to lapse of statute limitations	(3,777		)	(4,906		)	—
Foreign currency translation	1,720			(1,471		)	(3,572		)
Ending Balance	$	87,359		$	80,081		$	79,637