Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Tax Provision

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

	Year ended December 31,
	2018			2017			2016
United States	$	(19,780	)	$	(50,041	)	$	(53,833	)
International	2,832			(34,666		)	(26,597		)
Loss before income taxes	$	(16,948	)	$	(84,707	)	$	(80,430	)

Provision for Income Taxes

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

	Year ended December 31,
	2018			2017			2016
Current:
Federal	$	(305	)	$	(4,530	)	$	(950	)
State	116			129			181
International	2,958			273			2,738
Deferred:
Federal	—			—			(713		)
International	1,318			2,376			(9,372		)
Total provision for (benefit from) income taxes	$	4,087		$	(1,752	)	$	(8,116	)

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 21% and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands):

	Year ended December 31,
	2018			2017			2016
Benefit from for income taxes at U.S. Federal statutory rate	$	(3,559	)	$	(29,648	)	$	(28,150	)
Differential in rates on foreign earnings	4,299			15,920			11,741
Non-deductible amortization expense	—			—			617
Tax Reform tax rate reduction	—			14,527			—
Change in valuation allowance	1,449			(2,834		)	4,465
Change in liabilities for uncertain tax positions	(250		)	(2,009		)	(960		)
Non-deductible stock-based compensation	1,363			1,934			1,480
Permanent Differences	1,096			380			441
Adjustments related to tax positions taken during prior years	184			(473		)	(163		)
Adjustments made under intercompany transactions	—			—			1,779
Tax refund	(305		)	(834		)	—
Other	(190		)	1,285			634
Total provision for (benefit from) income taxes	$	4,087		$	(1,752	)	$	(8,116	)

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,
	2018			2017
Deferred tax assets:
Reserves and accruals	$	17,090		$	17,247
Net operating loss carryforwards	29,900			34,915
Research and development credit carryforwards	36,446			34,419
Deferred stock-based compensation	2,201			2,677
Intangibles	2,585			2,062
Other	939			1,441
Gross deferred tax assets	89,161			92,761
Valuation allowance	(77,144		)	(77,756		)
Gross deferred tax assets after valuation allowance	12,017			15,005
Deferred tax liabilities:
Depreciation and amortization	(391		)	(259		)
Convertible notes	(2,931		)	(4,284		)
Gross deferred tax liabilities	(3,322		)	(4,543		)
Net deferred tax assets	$	8,695		$	10,462

Activities Related to Valuation Allowance

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

	Year ended December 31,
	2018			2017			2016
Balance at beginning of period	$	77,756		$	74,480		$	64,545
Additions	928			9,028			18,291
Deductions	(1,540		)	(5,752		)	(8,356		)
Balance at end of period	$	77,144		$	77,756		$	74,480

Activities Related to Gross Unrecognized Tax Benefits

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

	Year ended December 31,
	2018			2017			2016
Balance at beginning of period	$	18.8		$	19.2		$	15.6
Increase in balance related to tax positions taken during current year	1.0			1.4			4.6
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1		)	(2.2		)	(1.0		)
Decrease in balance due to settlement with tax authorities	(1.6		)	—			—
Increase in balance related to tax positions taken during prior years	0.2			1.8			—
Decrease in balance related to tax positions taken during prior years	(0.3		)	(1.4		)	—
Balance at end of period	$	18.0		$	18.8		$	19.2