Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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


	Year Ended December 31,
(In thousands)	2017			2016			2015
United States	$	(209,634	)	$	(13,317	)	$	(5,357	)
Foreign		16			(1,467	)		5,927
(Loss) income from continuing operations before income taxes	$	(209,618	)	$	(14,784	)	$	570

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


	Year Ended December 31,
(In thousands)	2017			2016			2016
Current tax provision
Federal	$	407		$	323		$	570
State		1,770			606			658
Foreign		5,091			3,857			4,083
		7,268			4,786			5,311
Deferred tax provision
Federal		(39,237	)		(18,369	)		(2,928	)
State		(15,885	)		(3,354	)		898
Foreign		(2,913	)		(877	)		(655	)
		(58,035	)		(22,600	)		(2,685	)
Income tax (benefit) provision	$	(50,767	)	$	(17,814	)	$	2,626

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)	2017			2016			2015
United States federal tax at statutory rate	$	(73,171	)	$	(4,714	)	$	200
Items affecting federal income tax rate
Non-deductible acquisition and reorganization expenses		169			1,400			(2	)
Research credits		(4,476	)		(3,360	)		(3,000	)
Change in unrecognized tax benefits		686			(545	)		(208	)
State income taxes, net of federal benefit		(9,244	)		(371	)		182
Compensation		2,950			651			765
Meals and entertainment		1,358			1,341			1,023
Impact of foreign operations		730			2,847			1,848
Provision-to-Return adjustments		(1,413	)		(1,116	)		(136	)
Settlements with taxing authorities		0			0			(4,218	)
Deemed Dividends		1,289			887			1,408
Dividends Accrued		0			2,198			1,190
Federal, state and local rate changes		185			344			1,104
US Tax reform impact		(26,016	)		0			0
One time Mandatory Repatriation Toll Charge		5,155			0			0
Bilateral Advance Pricing Agreement impact		0			0			524
Non-deductible items		64			70			(5	)
Valuation allowance		47,959			(17,504	)		1,816
Other		3,008			58			135
Income tax provision (benefit)	$	(50,767	)	$	(17,814	)	$	2,626

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


	December 31,
(In thousands)	2017			2016
Deferred tax assets
Accruals and reserves, net	$	26,126		$	22,305
Allowance for doubtful accounts		7,741			12,386
Stock-based compensation, net		12,654			15,939
Deferred revenue		12,466			15,092
Net operating loss carryforwards		67,677			91,859
Capital loss carryforwards		42,702			0
Research and development tax credit		38,310			32,952
AMT credits		7,901			7,085
State tax credits		3,795			2,911
Other		11,106			15,065
Less: Valuation Allowance		(79,732	)		(23,761	)
Total deferred tax assets		150,746			191,833

Deferred tax liabilities
Prepaid expense		(6,407	)		(9,532	)
Property and equipment, net		(13,201	)		(15,879	)
Acquired intangibles, net		(219,559	)		(305,361	)
Other		(648	)		(22	)
Total deferred tax liabilities		(239,815	)		(330,794	)
Net deferred tax liabilities	$	(89,069	)	$	(138,961	)

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


	December 31,
(In thousands)	2017			2016
Non-current deferred tax assets, net	$	4,574		$	2,791
Non-current deferred tax liabilities, net		(93,643	)		(141,752	)
Non-current deferred tax liabilities, net	$	(89,069	)	$	(138,961	)

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


	Year Ended December 31,
(In thousands)	2017			2016			2015
Beginning balance as of January 1	$	11,380		$	11,777		$	15,314
Increases for tax positions related to the current year		990			733			600
Decreases for tax positions related to prior years		(205	)		(16	)		0
Increases for tax positions related to prior years		153			104			50
Decreases relating to settlements with taxing authorities		0			0			(3,805	)
Increases acquired in business acquisitions		0			617			0
Foreign currency translation		10			(1	)		(24	)
Reductions due to lapsed statute of limitations		(334	)		(1,834	)		(358	)
Ending balance as of December 31	$	11,994		$	11,380		$	11,777

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


	Year Ended December 31,
(In thousands)	2017		2016		2015
Interest and penalties included in the provision for income taxes	$	446	$	6	$	103

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


	December 31,
(In thousands)	2017		2016
Interest and penalties included in the liability for uncertain tax positions	$	741	$	1,187