INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018			2017			2016
(Loss) income from operations before income taxes:
United States	$	(1,940	)	$	(4,811	)	$	12,402
Foreign	(7,463		)	(8,611		)	32,942
Total (loss) income from operations before income taxes	$	(9,403	)	$	(13,422	)	$	45,344
Provision for (Benefit from) income taxes:
Current tax expense (benefit):
Federal	$	(1	)	$	(4	)	$	102
State	59			59			32
Foreign benefit of net operating losses	(206		)	(66		)	(1,247		)
Other foreign	1,372			1,774			(48		)
Total current tax expense (benefit)	1,224			1,763			(1,161		)
Deferred tax (benefit) expense:
Federal	—			(821		)	96
Other foreign	47			(809		)	(1,810		)
Total deferred tax (benefit) expense	47			(1,630		)	(1,714		)
Total provision for (benefit from) income taxes	$	1,271		$	133		$	(2,875	)

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2018 and 2017 (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	283,473		$	267,706
Allowances for bad debts	32			34
Difference in accounting for:
Revenues	3,666			18,057
Costs and expenses	17,033			16,149
Inventories	3,744			4,501
Acquired intangible assets	555			1,830
Gross deferred tax assets	308,503			308,277
Valuation allowance	(304,070		)	(298,955		)
Deferred tax assets after valuation allowance	4,433			9,322
Deferred tax liabilities:
Difference in accounting for:
Costs and expenses	(1,454		)	(3,608		)
Acquired intangible assets	(709		)	(2,189		)
Basis difference convertible notes	(1,112		)	(2,207		)
Gross deferred tax liabilities	(3,275		)	(8,004		)
Net deferred tax assets	$	1,158		$	1,318
Recorded as:
Long-term deferred tax assets, net	1,158			1,318
Long-term deferred tax liabilities, net	—			—
Net deferred tax assets	$	1,158		$	1,318

Reconciliation of Income Tax Provision to Statutory Rate

The following table sets forth a reconciliation of our income tax provision (benefit) to the statutory U.S. federal tax amount for the years ended December 31, 2018, 2017 and 2016:



	Year Ended December 31,
	2018			2017			2016
Statutory tax	$	(1,975	)	$	(4,698	)	$	15,870
Tax credits (generated) / expired	1,277			(1,646		)	(2,468		)
Foreign operations	1,854			3,113			(12,662		)
Change in uncertain tax positions	58			800			(6,710		)
Non-deductible expenses and other	301			1,109			670
Tax deficiency on stock-based compensation	—			—			2,509
Change in valuation allowance	(244		)	1,455			(84		)
Provision for (benefit from) income taxes	$	1,271		$	133		$	(2,875	)

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, 2018, 2017 and 2016 (in thousands):



Unrecognized tax benefits at January 1, 2016	$	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
Decreases for tax positions taken during a prior period	(78		)
Unrecognized tax benefits at December 31, 2018	$	1,763