INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following (in thousands):



	Years ended December 31,
	2013			2012		2011
Current:
Federal	$	196		$	416	$	(254	)
State	239			39		69
Foreign	51			30		43
Total current	486			485		(142		)
Deferred:
Federal	(63,012		)	—		—
State	(9,639		)	—		—
Total deferred	(72,651		)	—		—
Total provision (benefit) for income taxes	$	(72,165	)	$	485	$	(142	)

Schedule of components of deferred tax assets and liabilities

The components of our deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands):



	December 31,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	60,311		$	68,659
R&D tax credits	6,069			—
AMT and other tax credits	664			499
Accrued expenses	5,690			4,469
Reserves and other	4,565			7,464
Gross deferred tax assets	77,299			81,091
Valuation allowance	—			(79,693		)
Total deferred tax assets	77,299			1,398
Deferred tax liabilities:
Fixed assets	(3,291		)	(1,398		)
Prepaid expenses	(1,357		)	—
Total deferred tax liabilities	(4,648		)	(1,398		)
Total deferred tax assets, net	$	72,651		$	—

Schedule of difference in income tax provision from amount computed by applying U.S. federal income tax rate of 35% to loss before income taxes

The income tax provision differs from the amount computed by applying the U.S. federal income tax rate of 35% to income (loss) before income taxes for the following reasons (in thousands):



	Year ended December 31,
	2013			2012			2011
U.S. federal income tax provision (benefit) at statutory rate	$	5,720		$	5,303		$	(6,853	)
Adjustment to reserves in prior years (1)	4,418			—			—
Non-deductible fines and penalties	2,387			—			—
Other	242			(1,764		)	30
Lobbying expenses	209			—			—
Stock based compensation expense	(176		)	1			70
Research and development credit	(6,069		)	—			—
State income tax expense, net of federal benefit	(8,097		)	44			45
Change in valuation allowance	(70,799		)	(3,099		)	6,566
Income tax provision (benefit)	$	(72,165	)	$	485		$	(142	)

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(1)	Adjustments to reserves in prior years includes (1) the effects of reconciling income tax amounts recorded in our Consolidated Statements of Operations and Consolidated Income (Loss) to amounts reflected on our tax returns, including any adjustments to the Consolidated Balance Sheets; and (2) reductions to the NOLs from previous acquisitions.

Schedule of reconciliation of beginning and ending tax contingencies, excluding interest and penalties

A reconciliation of the beginning and ending tax contingencies, excluding interest and penalties, as of December 31, 2013 and 2012 is as follows (in thousands):



	Year ended December 31,
	2013		2012		2011
Beginning balance	$	231	$	231	$	191
Additions for tax positions related to the current year	2,737		—		—
Additions for tax positions taken in prior years	—		—		40
Ending balance	$	2,968	$	231	$	231