Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income (Loss) Before Income Tax Provision

Loss from continuing operations before income taxes consists of the following (in thousands):



	Year ended December 31,
	2015			2014			2013
United States	$	(16,826	)	$	(15,515	)	$	(31,521	)
International	758			(6,280		)	8,369
Loss from continuing operations before income taxes	$	(16,068	)	$	(21,795	)	$	(23,152	)

Provision for Income Taxes

The components of the provision for (benefit from) income taxes consist of the following (in thousands):



	Year ended December 31,
	2015			2014			2013
Current:
Federal	$	(1,981	)	$	(11,525	)	$	(38,243	)
State	120			8			93
International	1,966			1,619			1,988
Deferred:
Federal	—			25,722			(10,543		)
State	—			8,249			3,023
International	(512		)	380			(1,059		)
Total provision for (benefit from) income taxes	$	(407	)	$	24,453		$	(44,741	)

Reconciliation of Provision for Income Taxes

The differences between the provision for (benefit from) income taxes computed at the U.S. federal statutory rate at 35% and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands):



	Year ended December 31,
	2015			2014			2013
Benefit from for income taxes at U.S. Federal statutory rate	$	(5,624	)	$	(7,628	)	$	(8,103	)
State taxes	120			5,368			2,940
Differential in rates on foreign earnings	1,584			4,311			(1,396		)
Non-deductible amortization expense	947			3,138			4,311
Change in valuation allowance	2,230			26,053			(996		)
Change in liabilities for uncertain tax positions	(1,083		)	(8,126		)	(35,742		)
Non-deductible stock-based compensation	1,398			1,665			981
Research and development tax credits	(178		)	(841		)	(5,044		)
Non-deductible meals and entertainment	395			361			346
Non-deductible acquisition cost	457			—			—
Adjustments related to tax positions taken during prior years	(781		)	—			(1,154		)
Tax-exempt investment income	—			—			(304		)
Other	128			152			(580		)
Total provision for (benefit from) income taxes	$	(407	)	$	24,453		$	(44,741	)

Components of Deferred Tax Assets and Liabilities

The components of net deferred tax assets included in the Consolidated Balance Sheets are as follows (in thousands):



	December 31,
	2015			2014
Deferred tax assets:
Reserves and accruals	$	16,413		$	21,048
Net operating loss carryovers	27,023			24,946
Research and development credit carryovers	27,595			26,404
Deferred stock-based compensation	5,834			6,727
Other tax credits	2,738			2,738
Gross deferred tax assets	79,603			81,863
Valuation allowance	(64,545		)	(75,199		)
Gross deferred tax assets after valuation allowance	15,058			6,664
Deferred tax liabilities:
Depreciation and amortization	(1,189		)	(2,137		)
Intangibles	(899		)	(2,228		)
Convertible notes	(10,233		)	—
Other	(510		)	(589		)
Gross deferred tax liabilities	(12,831		)	(4,954		)
Net deferred tax assets	$	2,227		$	1,710

The following table summarizes the activity related to the Company’s valuation allowance (in thousands):



	Year ended December 31,
	2015			2014			2013
Balance at beginning of period	$	75,199		$	38,644		$	34,347
Additions	3,068			39,556			6,364
Deductions	(13,722		)	(3,001		)	(2,067		)
Balance at end of period	$	64,545		$	75,199		$	38,644

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits (in millions):



	Year ended December 31,
	2015			2014			2013
Balance at beginning of period	$	15.7		$	24.2		$	52.1
Increase in balance related to tax positions taken during current year	0.7			1.0			5.4
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.9		)	(9.5		)	(1.3		)
Decrease in balance due to settlement with tax authorities	—			—			(32.1		)
Increase in balance related to tax positions taken during prior years	0.3			—			0.1
Decrease in balance related to tax positions taken during prior years	(0.2		)	—			—
Balance at end of period	$	15.6		$	15.7		$	24.2