INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Loss Before Income Taxes and Components of Income Tax Provision

Income from continuing operations before income taxes and the components of the income tax provision consisted of the following for the years ended December 31, 2014, 2013 and 2012 (in thousands):



	Year Ended December 31,
	2014			2013			2012
Income (loss) from continuing operations before income taxes:
United States	$	(6,864	)	$	(16,414	)	$	19,198
Foreign	23,780			40,506			31,938
Total income from continuing operations before income taxes	$	16,916		$	24,092		$	51,136
Provision for (benefit from) income taxes:
Current tax expense (benefit):
Federal	$	14		$	(104	)	$	(750	)
State	83			114			102
Foreign benefit of net operating losses	(180		)	(170		)	(154		)
Other foreign	2,217			2,369			5,251
Total current tax expense	2,134			2,209			4,449
Deferred tax expense (benefit):
Other foreign	54			730			(400		)
Total deferred tax expense (benefit)	54			730			(400		)
Total provision for income taxes	$	2,188		$	2,939		$	4,049

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2014 and 2013 (in thousands):



	December 31,
	2014			2013
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	290,523		$	244,379
Allowances for bad debts	231			277
Difference in accounting for:
Revenues	63,916			98,838
Costs and expenses	29,004			29,784
Inventories	7,004			9,209
Acquired intangible assets	13,667			17,726
Gross deferred tax assets	404,345			400,213
Valuation allowance	(398,733		)	(396,143		)
Deferred tax assets after valuation allowance	5,612			4,070
Deferred tax liabilities:
Difference in accounting for:
Costs and expenses	(3,540		)	(1,712		)
Gross deferred tax liabilities	(3,540		)	(1,712		)
Net deferred tax assets	$	2,072		$	2,358
Recorded as:
Current deferred tax assets, net	322			522
Long-term deferred tax assets, net	1,886			2,415
Current deferred tax liabilities, net	—			(14		)
Long-term deferred tax liabilities, net	(136		)	(565		)
Net deferred tax assets	$	2,072		$	2,358

Reconciliation of Income Tax Provision to Statutory Rate

The following table sets forth a reconciliation of the Company’s income tax provision (benefit) to the statutory U.S. federal tax rate for the years ended December 31, 2014, 2013 and 2012:



	Year Ended December 31,
	2014		2013		2012
Statutory rate	35.0	%	35.0	%	35.0	%
Tax credits	(9.4	)%	(6.2	)%	(1.2	)%
Foreign operations	(35.8	)%	(43.8	)%	(12.7	)%
Non-deductible expenses and other	4.6	%	2.1	%	1.4	%
Increase (decrease) in valuation allowance	18.5	%	25.1	%	(14.6	)%
Effective tax rate	12.9	%	12.2	%	7.9	%

Reconciliation of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding the impact of interest and penalties, for the years ended December 31, 2014, 2013 and 2012 (in thousands):



Unrecognized tax benefits at January 1, 2012	$	20,180
Increases for tax positions taken during a prior period	3,198
Decreases related to the lapse of applicable statutes of limitations	(749		)
Unrecognized tax benefits at December 31, 2012	22,629
Increases for tax positions taken during a prior period	2,205
Decreases related to the lapse of applicable statutes of limitations	(105		)
Unrecognized tax benefits at December 31, 2013	24,729
Increases for tax positions taken during a prior period	1,118
Unrecognized tax benefits at December 31, 2014	$	25,847