INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Loss Before Income Taxes and Components of Income Tax Provision

Income from before income taxes and the components of the income tax provision consisted of the following for the years ended December 31, 2015, 2014 and 2013 (in thousands):



	Year Ended December 31,
	2015			2014			2013
Income from operations before income taxes:
United States	$	(23,977	)	$	(6,864	)	$	(16,414	)
Foreign	24,542			23,780			40,506
Total income from operations before income taxes	$	565		$	16,916		$	24,092
(Benefit) provision for income taxes:
Current tax expense (benefit):
Federal	$	115		$	14		$	(104	)
State	3			83			114
Foreign benefit of net operating losses	(180		)	(180		)	(170		)
Other foreign	3,734			2,217			2,369
Total current tax expense	3,672			2,134			2,209
Deferred tax (benefit) expense:
Federal benefit related to Note issuance	(6,493		)	—			—
Other foreign	906			54			730
Total deferred tax (benefit) expense	(5,587		)	54			730
Total (benefit) provision for income taxes	$	(1,915	)	$	2,188		$	2,939

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2015 and 2014 (in thousands):



	December 31,
	2015			2014
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	318,471		$	290,523
Allowances for bad debts	372			231
Difference in accounting for:
Revenues	54,475			63,916
Costs and expenses	34,116			29,004
Inventories	7,576			7,004
Acquired intangible assets	9,799			13,667
Gross deferred tax assets	424,809			404,345
Valuation allowance	(406,123		)	(398,733		)
Deferred tax assets after valuation allowance	18,686			5,612
Deferred tax liabilities:
Difference in accounting for:
Costs and expenses	(5,654		)	(3,540		)
Acquired intangible assets	(8,554		)	—
Basis difference convertible notes	(5,910		)	—
Gross deferred tax liabilities	(20,118		)	(3,540		)
Net deferred tax (liabilities) assets	$	(1,432	)	$	2,072
Recorded as:
Long-term deferred tax assets, net	2,011			2,208
Long-term deferred tax liabilities, net	(3,443		)	(136		)
Net deferred tax (liabilities) assets	$	(1,432	)	$	2,072

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 amount for the years ended December 31, 2015, 2014 and 2013:



	Year Ended December 31,
	2015			2014			2013
Statutory tax	$	198		$	5,921		$	8,432
Tax credits	(2,972		)	(1,589		)	(1,482		)
Foreign operations	(4,055		)	(6,047		)	(10,542		)
Non-deductible expenses and other	2,303			771			516
Federal benefit related to Note issuance	(6,493		)	—			—
Increase in valuation allowance	9,104			3,132			6,015
(Benefit) provision for income taxes	$	(1,915	)	$	2,188		$	2,939

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, 2015, 2014 and 2013 (in thousands):



Unrecognized tax benefits at January 1, 2013	$	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
Increases for tax positions taken during a prior period	148
Unrecognized tax benefits at December 31, 2015	$	25,995