Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

The following are the domestic and foreign components of the Company’s income (loss) before income taxes for the years ended December 31, 2016, 2015 and 2014:



	Year Ended
	December 31, 2016			December 31, 2015			December 31, 2014

	(in thousands)
Domestic	$	25,704		$	15,723		$	(19,081	)
International	(48,617		)	(19,862		)	580
Loss before income taxes	$	(22,913	)	$	(4,139	)	$	(18,501	)

Schedule of Components of Income Tax Expense (Benefit)

The following are the components of the provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014:



	Year Ended
	December 31, 2016			December 31, 2015			December 31, 2014

	(in thousands)
Current:
Federal	$	441		$	196		$	—
State	713			90			16
Foreign	613			367			308
Total current provision	1,767			653			324
Deferred:
Federal	—			—			(10		)
State	(289		)	1			(1		)
Foreign	(6,338		)	(5,215		)	(141		)
Total deferred benefit	(6,627		)	(5,214		)	(152		)
Total provision (benefit) for income taxes	$	(4,860	)	$	(4,561	)	$	172

Schedule of Effective Income Tax Rate Reconciliation

Set forth below is a reconciliation of the components that caused the Company’s provision (benefit) for income taxes to differ from amounts computed by applying the U.S. Federal statutory rate of 34.0% for the years ended December 31, 2016, 2015 and 2014:



	Year Ended
	December 31, 2016		December 31, 2015		December 31, 2014
U.S. federal statutory income tax rate	34.0	%	34.0	%	34.0	%
State income taxes, net of federal benefit	(2.1	)%	(1.4	)%	(0.1	)%
Foreign income (loss) at other than U.S. rates	(14.4	)%	(31.0	)%	0.8	%
Stock-based compensation expense	2.1	%	(31.5	)%	(4.4	)%
Meals and entertainment	(1.5	)%	(14.2	)%	(1.7	)%
Acquisition and related items	—	%	(8.6	)%	(0.1	)%
Non-deductible gifts	(0.1	)%	(0.8	)%	(0.1	)%
Research and development tax credits	7.2	%	42.3	%	4.7	%
Tax effect of intercompany financing	4.9	%	11.2	%	—	%
Other permanent items	—	%	(0.5	)%	(1.6	)%
Provision (benefit) to return adjustments	0.6	%	(9.4	)%	(0.2	)%
Change in valuation allowance	(9.5	)%	120.1	%	(32.2	)%
Effective income tax rate	21.2	%	110.2	%	(0.9	)%

Schedule of Deferred Tax Assets and Liabilities

Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities as of December 31, 2016 and 2015:



	December 31, 2016			December 31, 2015

	(in thousands)
Deferred Tax Assets:
Accrued liabilities	$	1,287		$	1,777
Stock-based compensation	7,381			7,737
Net operating loss carryovers	21,375			18,609
Tax credit carryovers	10,915			7,931
Other	2,360			1,926
Total deferred tax assets	43,318			37,980
Less valuation allowance	(39,491		)	(29,255		)
Deferred tax assets, net of valuation allowance	3,827			8,725
Deferred Tax Liabilities:
Fixed assets	(3,764		)	(2,630		)
Intangible assets	468			(12,198		)
Other	—			—
Total deferred tax liabilities	(3,296		)	(14,828		)
Net deferred tax assets (liability)	$	531		$	(6,103	)

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):



	Amount
	(in thousands)
Balance at January 1, 2014	$	1,454
Increases related to 2014 tax positions	679
Decreases related to prior year tax positions	(2		)
Balance as of December 31, 2014	2,131
Increases related to 2015 tax positions	2,194
Decreases related to prior year tax positions	—
Balance as of December 31, 2015	4,325
Increases related to current year tax positions	702
Decreases related to prior year tax positions	—
Balance as of December 31, 2016	$	5,027