INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017, 2016 and 2015 (in thousands):



	Year Ended December 31,
	2017			2016			2015
(Loss) income from operations before income taxes:
United States	$	(4,811	)	$	12,402		$	(23,977	)
Foreign	(8,611		)	32,942			24,542
Total (loss) income from operations before income taxes	$	(13,422	)	$	45,344		$	565
Provision for (Benefit from) income taxes:
Current tax expense (benefit):
Federal	$	(4	)	$	102		$	115
State	59			32			3
Foreign benefit of net operating losses	(66		)	(1,247		)	(180		)
Other foreign	1,774			(48		)	3,734
Total current tax expense (benefit)	1,763			(1,161		)	3,672
Deferred tax (benefit) expense:
Federal benefit related to Note issuance	—			—			(6,493		)
Federal	(821		)	96			—
Other foreign	(809		)	(1,810		)	906
Total deferred tax (benefit) expense	(1,630		)	(1,714		)	(5,587		)
Total provision for (benefit from) income taxes	$	133		$	(2,875	)	$	(1,915	)

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2017 and 2016 (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	267,706		$	369,847
Allowances for bad debts	34			431
Difference in accounting for:
Revenues	18,057			35,856
Costs and expenses	16,149			26,537
Inventories	4,501			9,118
Acquired intangible assets	1,830			6,112
Gross deferred tax assets	308,277			447,901
Valuation allowance	(298,955		)	(432,631		)
Deferred tax assets after valuation allowance	9,322			15,270
Deferred tax liabilities:
Difference in accounting for:
Costs and expenses	(3,608		)	(6,457		)
Acquired intangible assets	(2,189		)	(3,669		)
Basis difference convertible notes	(2,207		)	(4,812		)
Gross deferred tax liabilities	(8,004		)	(14,938		)
Net deferred tax assets	$	1,318		$	332
Recorded as:
Long-term deferred tax assets, net	1,318			1,245
Long-term deferred tax liabilities, net	—			(913		)
Net deferred tax assets	$	1,318		$	332

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, 2017, 2016 and 2015:



	Year Ended December 31,
	2017			2016			2015
Statutory tax	$	(4,698	)	$	15,870		$	198
Tax credits	(1,646		)	(2,468		)	(2,972		)
Foreign operations	3,113			(12,662		)	(4,055		)
Change in uncertain tax positions	800			(6,710		)	—
Non-deductible expenses and other	1,109			670			2,303
Federal benefit related to Note issuance	—			—			(6,493		)
Tax deficiency on stock-based compensation	—			2,509			—
Change in valuation allowance	1,455			(84		)	9,104
Provision for (benefit from) income taxes	$	133		$	(2,875	)	$	(1,915	)

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, 2017, 2016 and 2015 (in thousands):



Unrecognized tax benefits at January 1, 2015	$	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
Increases for tax positions taken during a prior period	800
Unrecognized tax benefits at December 31, 2017	$	1,841