Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019			2018			2017
United States	$	1,769		$	(19,780	)	$	(50,041	)
International	(8,365		)	2,832			(34,666		)
Loss before income taxes	$	(6,596	)	$	(16,948	)	$	(84,707	)

Provision for Income Taxes

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

	Year ended December 31,
	2019			2018			2017
Current:
Federal	$	(180	)	$	(305	)	$	(4,530	)
State	108			116			129
International	1,525			2,958			273
Deferred:
International	(2,125		)	1,318			2,376
Total provision for (benefit from) income taxes	$	(672	)	$	4,087		$	(1,752	)

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% for 2019 and 2018, and 35% for 2017, and the Company’s actual provision for (benefit from) income taxes are as follows (in thousands):

	Year ended December 31,
	2019			2018			2017
Benefit from for income taxes at U.S. Federal statutory rate	$	(1,384	)	$	(3,559	)	$	(29,648	)
Differential in rates on foreign earnings	2,422			4,299			15,920
Tax Reform tax rate reduction	—			—			14,527
Change in valuation allowance	(923		)	1,449			(2,834		)
Change in liabilities for uncertain tax positions	(411		)	(250		)	(2,009		)
Non-deductible stock-based compensation	553			1,363			1,934
Permanent Differences	(698		)	1,096			380
Adjustments related to tax positions taken during prior years	(403		)	184			(473		)
Tax refund	—			(305		)	(834		)
Other	172			(190		)	1,285
Total provision for (benefit from) income taxes	$	(672	)	$	4,087		$	(1,752	)

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,
	2019			2018
Deferred tax assets:
Reserves and accruals	$	20,622		$	17,090
Net operating loss carryforwards	33,811			29,900
Research and development credit carryforwards	36,914			36,446
Deferred stock-based compensation	1,675			2,201
Intangibles	8,224			2,585
Operating lease liabilities	5,877			—
Capitalized research and development expenses	10,897			—
Other	—			939
Gross deferred tax assets	118,020			89,161
Valuation allowance	(95,518		)	(77,144		)
Gross deferred tax assets after valuation allowance	22,502			12,017
Deferred tax liabilities:
Depreciation	(1,272		)	(391		)
Convertible notes	(6,275		)	(2,931		)
Operating lease right-of-use assets	(4,061		)	—
Other	(319		)	—
Gross deferred tax liabilities	(11,927		)	(3,322		)
Net deferred tax assets	$	10,575		$	8,695

Activities Related to Valuation Allowance

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

	Year ended December 31,
	2019			2018			2017
Balance at beginning of period	$	77,144		$	77,756		$	74,480
Additions	23,929			928			9,028
Deductions	(5,555		)	(1,540		)	(5,752		)
Balance at end of period	$	95,518		$	77,144		$	77,756

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,
	2019			2018			2017
Balance at beginning of period	$	18.0		$	18.8		$	19.2
Increase in balance related to tax positions taken during current year	0.2			1.0			1.4
Decrease in balance as a result of a lapse of the applicable statues of limitations	(0.1		)	(0.1		)	(2.2		)
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	(1.1		)	(0.3		)	(1.4		)
Balance at end of period	$	17.0		$	18.0		$	18.8