INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2019 |
Income Tax Disclosure [Abstract] |
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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, 2019, 2018 and 2017 were as follows (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | United States | $ | 6,758 |
| | $ | 23,349 |
| | $ | 30,095 |
| International | (20,289 | ) | | (22,318 | ) | | 6,050 |
| Income (loss) before provision (benefit) for income taxes | $ | (13,531 | ) | | $ | 1,031 |
| | $ | 36,145 |
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The provision (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017 was allocated between continuing operations and discontinued operations as follows (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | Continuing Operations | $ | 761 |
| | $ | (957 | ) | | $ | 7,544 |
| Discontinued Operations | — |
| | — |
| | — |
| Total | $ | 761 |
| | $ | (957 | ) | | $ | 7,544 |
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
The provision (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017 was allocated between continuing operations and discontinued operations as follows (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | Continuing Operations | $ | 761 |
| | $ | (957 | ) | | $ | 7,544 |
| Discontinued Operations | — |
| | — |
| | — |
| Total | $ | 761 |
| | $ | (957 | ) | | $ | 7,544 |
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The provision (benefit) for income taxes from continuing operations for the years ended December 31, 2019, 2018 and 2017 consisted of the following components (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | Current taxes: | | | | | | U.S. federal | $ | (5,901 | ) | | $ | 768 |
| | $ | (120 | ) | State | 929 |
| | 57 |
| | 191 |
| International | 7,218 |
| | 3,218 |
| | 6,870 |
| Total current taxes | 2,246 |
| | 4,043 |
| | 6,941 |
| Deferred taxes: | | | | | | U.S. federal | 32 |
| | (319 | ) | | (1,335 | ) | State | (9 | ) | | — |
| | 50 |
| International | (1,508 | ) | | (4,681 | ) | | 1,888 |
| Total deferred taxes | (1,485 | ) | | (5,000 | ) | | 603 |
| Provision (benefit) for income taxes | $ | 761 |
| | $ | (957 | ) | | $ | 7,544 |
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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, 2019, 2018 and 2017 were as follows (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 (3) | | 2017 | U.S. federal income tax provision (benefit) at statutory rate | $ | (2,842 | ) | | $ | 216 |
| | $ | 12,651 |
| Foreign income and losses taxed at different rates (1) | 5,529 |
| | 2,113 |
| | 4,524 |
| State income taxes, net of federal benefits, and state tax credits | 5,297 |
| | 720 |
| | (4,980 | ) | Change in valuation allowances | (10,074 | ) | | (7,727 | ) | | (36,057 | ) | Effect of income tax rate changes on deferred items (2) | (3,443 | ) | | 1,544 |
| | 20,466 |
| Tax effects of intercompany transactions | — |
| | 607 |
| | 3,332 |
| Adjustments related to uncertain tax positions | (12,418 | ) | | 18 |
| | 1,824 |
| Non-deductible stock-based compensation expense | 6,355 |
| | 3,239 |
| | 5,002 |
| Tax shortfalls on stock-based compensation awards | 2,042 |
| | (335 | ) | | 4,290 |
| Federal research and development credits | 3,447 |
| | (8,331 | ) | | (7,862 | ) | Forgiveness of intercompany liabilities | 67 |
| | (1,340 | ) | | (2,494 | ) | Ordinary stock loss | — |
| | (11,815 | ) | | — |
| Net operating loss expiration | 12,537 |
| | — |
| | — |
| Non-deductible or non-taxable items | (5,736 | ) | | 20,134 |
| | 6,848 |
| Provision (benefit) for income taxes | $ | 761 |
| | $ | (957 | ) | | $ | 7,544 |
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| | (1) | Tax rates in foreign jurisdictions were generally lower than the U.S. federal statutory rate through December 31, 2019. This results in an adverse impact to the provision (benefit) for income taxes in this rate reconciliation for the years ended December 31, 2019, 2018 and 2017 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 our provision for income taxes for the year ended December 31, 2017 due to the valuation allowance against our U.S. net deferred tax assets. |
(3) During the year ended December 31, 2019, we updated our net operating losses to remove deferred tax assets that could never be utilized due to IRC Section 382 limitations. The amount of State income taxes, net of federal benefits, and state tax credits, Change in valuation allowances and Non-deductible or non-taxable items for the year ended December 31, 2018 have been updated from $2.0 million, $3.8 million and $7.3 million previously reported to reflect that change.
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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, 2019 and 2018 (in thousands): | | | | | | | | | | December 31, | | 2019 | | 2018 | Deferred tax assets: | | | | Accrued expenses and other liabilities | $ | 35,565 |
| | $ | 25,694 |
| Operating lease obligation | 22,557 |
| | — |
| Stock-based compensation | 7,657 |
| | 5,167 |
| Net operating loss and tax credit carryforwards (1) | 157,202 |
| | 194,773 |
| Intangible assets, net | 21,002 |
| | 16,482 |
| Investments | 23,012 |
| | 5,916 |
| Unrealized foreign currency exchange losses | 3,765 |
| | 1,882 |
| Other | 1,017 |
| | 1,021 |
| Total deferred tax assets | 271,777 |
| | 250,935 |
| Less: Valuation allowances (1) | (206,394 | ) | | (216,468 | ) | Deferred tax assets, net of valuation allowance | 65,383 |
| | 34,467 |
| Deferred tax liabilities: | | | | Prepaid expenses and other assets | (16,343 | ) | | (12,737 | ) | Property, equipment and software, net | (11,994 | ) | | (12,576 | ) | Right-of-use asset | (20,172 | ) | | — |
| Convertible senior notes | (1,883 | ) | | (2,457 | ) | Deferred revenue | (14,064 | ) | | (7,255 | ) | Total deferred tax liabilities | (64,456 | ) | | (35,025 | ) | Net deferred tax asset (liability) | $ | 927 |
| | $ | (558 | ) |
(1) During the year ended December 31, 2019, we updated our net operating losses to remove deferred tax assets that could never be utilized due to IRC Section 382 limitations. The amount of Net operating loss and tax credit carryforwards and Valuation allowances for the year ended December 31, 2018 have been updated from $206.3 million and $228.0 million previously reported to reflect that change.
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Summary of Unrecognized Tax Benefits |
The following table summarizes activity related to our gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2019, 2018 and 2017 (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | Beginning Balance | $ | 87,637 |
| | $ | 87,359 |
| | $ | 80,081 |
| Increases related to prior year tax positions | 3,754 |
| | 1,500 |
| | 960 |
| Decreases related to prior year tax positions | (28,767 | ) | | (21 | ) | | (1,196 | ) | Increases related to current year tax positions | 6,086 |
| | 7,533 |
| | 9,571 |
| Decreases based on settlements with taxing authorities | — |
| | — |
| | — |
| Decreases due to lapse of statute limitations | (3,875 | ) | | (9,447 | ) | | (3,777 | ) | Foreign currency translation | (474 | ) | | 713 |
| | 1,720 |
| Ending Balance | $ | 64,361 |
| | $ | 87,637 |
| | $ | 87,359 |
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