Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The following is a geographic breakdown of income (loss) before income tax benefits:


	Year Ended December 31,
(In thousands)	2016			2015			2014
United States	$	(13,317	)	$	(5,357	)	$	(62,987	)
Foreign		(1,467	)		5,927			(5,130	)
Total income (loss) before income taxes	$	(14,784	)	$	570		$	(68,117	)

The following is a summary of the components of the provision (benefit) for income taxes:


	Year Ended December 31,
(In thousands)	2016			2015			2014
Current tax provision
Federal	$	323		$	570		$	840
State		606			658			213
Foreign		3,857			4,083			(399	)
		4,786			5,311			654
Deferred tax provision
Federal		(18,369	)		(2,928	)		(581	)
State		(3,354	)		898			(3,261	)
Foreign		(877	)		(655	)		1,524
		(22,600	)		(2,685	)		(2,318	)
Income tax provision (benefit)	$	(17,814	)	$	2,626		$	(1,664	)

Taxes computed at the statutory federal income tax rate of 35% are reconciled to the provision for income taxes as follows:


	Year Ended December 31,
(In thousands)	2016			2015			2014
United States federal tax at statutory rate	$	(4,714	)	$	200		$	(23,844	)
Items affecting federal income tax rate
Non-deductible acquisition and reorganization expenses		1,400			(2	)		(56	)
Research credits		(3,360	)		(3,000	)		(3,133	)
Change in unrecognized tax benefits		(545	)		(208	)		(519	)
State income taxes, net of federal benefit		(371	)		182			(2,120	)
Compensation		651			765			1,017
Meals and entertainment		1,341			1,023			954
Impact of foreign operations		2,847			1,848			2,505
Provision-to-Return adjustments		(1,116	)		(136	)		0
Settlements with taxing authorities		0			(4,218	)		0
Deemed Dividends		887			1,408			0
Dividends Accrued		2,198			1,190			0
Federal, state and local rate changes		344			1,104			(268	)
Bilateral Advance Pricing Agreement impact		0			524			(199	)
Non-deductible items		70			(5	)		82
Valuation allowance		(17,504	)		1,816			24,666
Other		58			135			(749	)
Income tax provision (benefit)	$	(17,814	)	$	2,626		$	(1,664	)

Significant components of our deferred tax assets and liabilities consist of the following:


	December 31,
(In thousands)	2016			2015
Deferred tax assets
Accruals and reserves, net	$	22,305		$	24,548
Allowance for doubtful accounts		12,386			12,194
Stock-based compensation, net		15,939			12,086
Deferred revenue		15,092			13,294
Net operating loss carryforwards		91,859			78,909
Research and development tax credit		32,952			26,863
AMT credits		7,085			6,070
State tax credits		2,911			0
Other		15,065			7,012
Less: Valuation Allowance		(23,761	)		(43,043	)
Total deferred tax assets		191,833			137,933

Deferred tax liabilities
Prepaid expense		(9,532	)		(8,594	)
Property and equipment, net		(15,879	)		(3,953	)
Acquired intangibles, net		(305,361	)		(145,252	)
Other		(22	)		0
Total deferred tax liabilities		(330,794	)		(157,799	)
Net deferred tax liabilities	$	(138,961	)	$	(19,866	)

The deferred tax assets (liabilities) are classified in the consolidated balance sheets as follows:


	December 31,
(In thousands)	2016			2015
Non-current deferred tax assets, net	$	2,791		$	2,298
Non-current deferred tax liabilities, net		(141,752	)		(22,164	)
Non-current deferred tax liabilities, net	$	(138,961	)	$	(19,866	)

Changes in the amounts of unrecognized tax benefits were as follows:


	Year Ended December 31,
(In thousands)	2016			2015			2014
Beginning balance as of January 1	$	11,777		$	15,314		$	18,283
Increases for tax positions related to the current year		733			600			627
Decreases for tax positions related to prior years		(16	)		0			(3,239	)
Increases for tax positions related to prior years		104			50			173
Decreases relating to settlements with taxing authorities		0			(3,805	)		(384	)
Increases acquired in business acquisitions		617			0			0
Foreign currency translation		(1	)		(24	)		(26	)
Reductions due to lapsed statute of limitations		(1,834	)		(358	)		(120	)
Ending balance as of December 31	$	11,380		$	11,777		$	15,314

We recognized interest and penalties related to uncertain tax positions in our consolidated statements of operations as follows:


	Year Ended December 31,
(In thousands)	2016			2015			2014
Interest and penalties included in the provision for income taxes	$	(6	)	$	(103	)	$	(715	)

The amount of interest and penalties included in our consolidated balance sheets is as follows:


	December 31,
(In thousands)	2016		2015
Interest and penalties included in the liability for uncertain tax positions	$	1,187	$	1,193