INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income 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, 2016, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2016			2015			2014
Income (loss) from operations before income taxes:
United States	$	12,402		$	(23,977	)	$	(6,864	)
Foreign	32,942			24,542			23,780
Total income from operations before income taxes	$	45,344		$	565		$	16,916
(Benefit from) provision for income taxes:
Current tax expense (benefit):
Federal	$	102		$	115		$	14
State	32			3			83
Foreign benefit of net operating losses	(1,247		)	(180		)	(180		)
Other foreign	(48		)	3,734			2,217
Total current tax (benefit) expense	(1,161		)	3,672			2,134
Deferred tax (benefit) expense:
Federal benefit related to Note issuance	—			(6,493		)	—
Federal	96			—			—
Other foreign	(1,810		)	906			54
Total deferred tax (benefit) expense	(1,714		)	(5,587		)	54
Total (benefit from) provision for income taxes	$	(2,875	)	$	(1,915	)	$	2,188

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2016 and 2015 (in thousands):



	December 31,
	2016			2015
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	369,847		$	318,471
Allowances for bad debts	431			372
Difference in accounting for:
Revenues	35,856			54,475
Costs and expenses	26,537			34,116
Inventories	9,118			7,576
Acquired intangible assets	6,112			9,799
Gross deferred tax assets	447,901			424,809
Valuation allowance	(432,631		)	(406,123		)
Deferred tax assets after valuation allowance	15,270			18,686
Deferred tax liabilities:
Difference in accounting for:
Costs and expenses	(6,457		)	(5,654		)
Acquired intangible assets	(3,669		)	(8,554		)
Basis difference convertible notes	(4,812		)	(5,910		)
Gross deferred tax liabilities	(14,938		)	(20,118		)
Net deferred tax assets (liabilities)	$	332		$	(1,432	)
Recorded as:
Long-term deferred tax assets, net	1,245			2,011
Long-term deferred tax liabilities, net	(913		)	(3,443		)
Net deferred tax assets (liabilities)	$	332		$	(1,432	)

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, 2016, 2015 and 2014:



	Year Ended December 31,
	2016			2015			2014
Statutory tax	$	15,870		$	198		$	5,921
Tax credits	(2,468		)	(2,972		)	(1,589		)
Foreign operations	(12,662		)	(4,055		)	(6,047		)
Change in uncertain tax positions	(6,710		)	—			—
Non-deductible expenses and other	670			2,303			771
Federal benefit related to Note issuance	—			(6,493		)	—
Tax deficiency on stock-based compensation	2,509			—			—
Change in valuation allowance	(84		)	9,104			3,132
(Benefit from) provision for income taxes	$	(2,875	)	$	(1,915	)	$	2,188

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, 2016, 2015 and 2014 (in thousands):



Unrecognized tax benefits at January 1, 2014	$	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
Increases for tax positions taken during a prior period	1,041
Decreases for tax positions taken during a prior period	(25,995		)
Unrecognized tax benefits at December 31, 2016	$	1,041