Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

Domestic and foreign pre-tax income (loss) is as follows (in thousands):



	For the Years Ended December 31,
	2016			2015			2014
Domestic	$	(12,040	)	$	(15,822	)	$	(29,891	)
Foreign	4,223			2,886			4,802
Total pre-tax loss	$	(7,817	)	$	(12,936	)	$	(25,089	)

The income tax provision consists of the following (in thousands):



	For the Years Ended December 31,
	2016			2015			2014
Current provision:
Federal	$	—		$	—		$	—
State	78			30			21
Foreign	2,225			1,772			2,127
Total current provision	2,303			1,802			2,148
Deferred provision (benefit):
Federal	(86		)	35			(73		)
State	(4		)	2			(3		)
Foreign	221			(97		)	420
Total deferred provision	131			(60		)	344
Total income tax provision	$	2,434		$	1,742		$	2,492

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to pretax income as a result of the following differences (dollar amounts in thousands):



	For the Years Ended December 31,
	2016					2015					2014
	$			%		$			%		$			%
Statutory federal tax (benefit) rate	$	(2,736	)	35.0	%	$	(4,526	)	35.0	%	$	(8,781	)	35.0	%
Increase (decrease) in rates resulting from:
State taxes	(67		)	0.9		609			(4.7	)	(246		)	1.0
Foreign dividends and unremitted earnings	1,745			(22.3	)	1,493			(11.5	)	(586		)	2.3
Valuation allowance	1,596			(20.4	)	2,456			(19.0	)	7,367			(29.4	)
Taxes on foreign income that differ from U.S. tax rate	(901		)	11.5		(405		)	3.1		2,488			(9.9	)
Executive Compensation limitation	1,005			(12.9	)	—			—		—			—
Non-deductible stock-based compensation expense	135			(1.7	)	1,104			(8.5	)	1,206			(4.8	)
Expiration of attributes	1,478			(18.9	)	893			(6.9	)	330			(1.3	)
Uncertain tax positions	120			(1.5	)	435			(3.4	)	362			(1.4	)
Other	59			(0.8	)	(317		)	2.4		352			(1.4	)
Effective tax rate	$	2,434		(31.1	)%	$	1,742		(13.5	)%	$	2,492		(9.9	)%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes consist of the following (in thousands):



	December 31, 2016			December 31, 2015
Deferred tax assets:
Accrued warranty	$	657		$	919
Inventory	3,631			2,697
Net operating loss carryforwards	57,294			59,784
Tax credit carryforwards	22,075			22,817
Stock-based compensation	1,995			2,142
Fixed assets	1,808			952
Goodwill	1,603			2,109
Deferred revenue	2,906			2,950
Subsidiary service accruals	1,702			—
Other	2,082			2,748
Total deferred tax assets	95,753			97,118
Less: valuation allowance	(88,566		)	(86,752		)
Net deferred tax assets	7,187			10,366
Deferred tax liabilities:
Intangible assets	(5,603		)	(7,582		)
Other	(467		)	(1,611		)
Total deferred tax liabilities	(6,070		)	(9,193		)
Total net deferred tax assets	$	1,117		$	1,173

Schedule of Unrecognized Tax Benefits Roll Forward

The Company’s total amounts of unrecognized tax benefits at the beginning and end of the period are as follows (in thousands):



	Total
Balance as of December 31, 2014	$	3,688
Additions based on tax positions related to the current year	329
Additions for tax positions of prior years	67
Reductions for tax positions of prior years	(204		)
Reductions as a result of a lapse of applicable statute of limitations	(70		)
Reductions due to settlements	(28		)
Other	$	(102	)
Balance as of December 31, 2015	$	3,680
Additions based on tax positions related to the current year	245
Additions for tax positions of prior years	24
Reductions for tax positions of prior years	(240		)
Reductions as a result of a lapse of applicable statute of limitations	(80		)
Reductions due to settlements	(6		)
Other	(74		)
Balance as of December 31, 2016	$	3,549