Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income (loss) before income tax, domestic and foreign

For financial reporting purposes, loss before income taxes includes the following components (in thousands):

	Years Ended December 31,
	2017			2016			2015
United States	$	(49,167	)	$	(38,319	)	$	(35,074	)
Foreign	9,695			18,759			17,344
Total	$	(39,472	)	$	(19,560	)	$	(17,730	)

Components of income tax expense (benefit)

The provision for income taxes based on loss before income taxes is as follows (in thousands):

	Years Ended December 31,
	2017			2016			2015
Federal:
Current	$	—		$	—		$	—
Deferred	18,646			(11,360		)	(4,297		)
	18,646			(11,360		)	(4,297		)
State:
Current	5			7			6
Deferred	231			923			62
	236			930			68
Foreign:
Current	3,155			3,742			4,930
Deferred	(1,418		)	561			8
	1,737			4,303			4,938
(Decrease) increase in valuation allowance	(16,962		)	10,272			3,894
Tax provision	$	3,657		$	4,145		$	4,603

Tax rate reconciliation

The primary components of such difference are as follows (in thousands):

	Years Ended December 31,
	2017			2016			2015
Taxes at federal statutory rate	$	(13,420	)	$	(6,650	)	$	(6,028	)
State taxes, net of federal benefit	(236		)	(208		)	(236		)
Effect of tax rate differential for foreign subsidiary	(1,646		)	(2,985		)	(2,641		)
Valuation allowance, including tax benefits of stock activity	(16,962		)	10,272			3,894
Tax rate change	34,732			—			—
Foreign taxes on unremitted earnings	—			1,204			2,085
Stock-based compensation	224			441			134
Foreign withholding taxes	295			260			180
Return to provision adjustments	(2,931		)	1,062			1,131
Subpart F income inclusion	2,998			906			5,914
SEC settlement penalty	959			—			—
Business combination	(1,914		)	—			—
Other	1,558			(157		)	170
Tax provision	$	3,657		$	4,145		$	4,603

Deferred tax assets and liabilities

Items that give rise to significant portions of the deferred tax accounts are as follows (in thousands):

	December 31,
	2017			2016
Deferred tax assets:
Tax loss carryforwards	$	50,183		$	62,994
Tax credit carryforwards	792			19
Uniform capitalization, contract and inventory related reserves	805			598
Accrued vacation	301			514
Stock-based compensation	2,029			2,130
Capitalized research and development	3,043			5,532
Tax basis depreciation less book depreciation	1,523			1,661
Intangible assets	—			1,354
Deferred revenue	175			33
Accrued foreign taxes	1,044			1,263
Other	2,369			2,523
Total	62,264			78,621
Deferred tax liabilities:
Inventory deduction	(587		)	(369		)
Pension assets	(1,326		)	(1,733		)
Allowance for doubtful accounts	(534		)	(677		)
Withholding tax on undistributed earnings of foreign subsidiary	(4,879		)	(4,879		)
Unrealized gains and losses	(351		)	(733		)
Intangible assets	(1,514		)	—
Total	(9,191		)	(8,391		)
Net deferred tax assets before valuation allowance	53,073			70,230
Valuation allowance	(61,403		)	(78,366		)
Net deferred tax liabilities	$	(8,330	)	$	(8,136	)

Unrecognized tax benefits rollforward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2015	$	14,014
Increase in current period positions	1,596
Increase in prior period positions	116
Decrease in prior period positions	(147		)
Balance at December 31, 2016	15,579
Increase in current period positions	1,081
Decrease in prior period positions	(518		)
Balance at December 31, 2017	$	16,142