Note 12 - Income Taxes	3 Months Ended
Mar. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	12. INCOME TAXES The income tax provision for the three months ended March 31, 2017 was $0.5 million, or 3.2% of pre-tax income. The effective tax rate differed from the federal statutory rate primarily because foreign income generated by the Company’s subsidiaries in Bermuda and China was taxed at lower rates. In addition, the effective tax rate was impacted by changes in the valuation allowance primarily related to stock-based compensation . The income tax provision for the three months ended March 31, 2016 was $0.3 million, or 3.2% of pre-tax income. The effective tax rate differed from the federal statutory rate primarily because foreign income generated by the Company’s subsidiaries in Bermuda and China was taxed at lower rates, and because of the benefit that the Company realized from the release of RSUs. In addition, the effective tax rate was impacted by changes in the valuation allowance primarily related to stock-based compensation. On July 27, 2015, in Altera Corp. v. Commissioner , the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued in December 2015, and the Internal Revenue Service (“IRS”) appealed the decision in February 2016. At this time, the U.S. Department of the Treasury has not withdrawn the requirement from its regulations to include stock-based compensation. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any adjustments as of March 31, 2017. The Company will continue to monitor developments related to this opinion and the potential impact on its financial statements. Adoption of ASU No. 2016 - 09 Upon adoption of ASU No. 2016 - 09 on January 1, 2017, excess tax benefits are now recognized in the income tax provision in the Condensed Consolidated Statements of Operations prospectively, rather than in additional paid-in capital in the Condensed Consolidated Balance Sheets. The Company applied the modified retrospective method and there was no net cumulative-effect adjustment to retained earnings on January 1, 2017, as the increase in deferred tax assets for previously unrecognized excess tax benefits was fully offset by a valuation allowance. For the three months ended March 31, 2017, the Company was in a taxable loss position and accordingly, there was no discrete benefit recorded in the income tax provision related to the excess tax benefits upon vesting of the equity awards. Unrecognized Tax Benefits As of March 31, 2017, the Company had $15.0 million of unrecognized tax benefits, $3.8 million of which would affect its effective tax rate if recognized after considering the valuation allowance. As of December 31, 2016, the Company had $14.4 million of unrecognized tax benefits, $3.5 million of which would affect its effective tax rate if recognized after considering the valuation allowance. Uncertain tax positions relate to the allocation of income and deductions among the Company’s global entities and to the determination of the research and development tax credit. It is reasonably possible that over the next twelve -month period, the Company may experience increases or decreases in its unrecognized tax benefits. However, it is not possible to determine either the magnitude or the range of increases or decreases at this time. The Company recognizes interest and penalties, if any, related to uncertain tax positions in its income tax provision. As of March 31, 2017 and December 31, 2016, the Company has approximately $0.4 million and $0.3 million of accrued interest related to uncertain tax positions, respectively, which were recorded in long-term income tax liabilities in the Condensed Consolidated Balance Sheets.

12.

INCOME TAXES

The income tax provision for the

three

months ended

March

31,

2017

was

$0.5

million, or

3.2%

of pre-tax income. The effective tax rate differed from the federal statutory rate primarily because foreign income generated by the Company’s subsidiaries in Bermuda and China was taxed at lower rates. In addition, the effective tax rate was impacted by changes in the valuation allowance primarily related to stock-based compensation

The income tax provision for the

three

months ended

March

31,

2016

was

$0.3

million, or

3.2%

of pre-tax income. The effective tax rate differed from the federal statutory rate primarily because foreign income generated by the Company’s subsidiaries in Bermuda and China was taxed at lower rates, and because of the benefit that the Company realized from the release of RSUs. In addition, the effective tax rate was impacted by changes in the valuation allowance primarily related to stock-based compensation.

July

27,

2015,

Altera Corp. v. Commissioner

, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued in

December

2015,

and the Internal Revenue Service (“IRS”) appealed the decision in

February

2016.

At this time, the U.S. Department of the Treasury has not withdrawn the requirement from its regulations to include stock-based compensation. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any adjustments as of

March

31,

2017.

The Company will continue to monitor developments related to this opinion and the potential impact on its financial statements.

Adoption of ASU No.

2016

Upon adoption of ASU No.

2016

January

2017,

excess tax benefits are now recognized in the income tax provision in the Condensed Consolidated Statements of Operations prospectively, rather than in additional paid-in capital in the Condensed Consolidated Balance Sheets. The Company applied the modified retrospective method and there was no net cumulative-effect adjustment to retained earnings on

January

2017,

as the increase in deferred tax assets for previously unrecognized excess tax benefits was fully offset by a valuation allowance. For the

three

months ended

March

31,

2017,

the Company was in a taxable loss position and accordingly, there was no discrete benefit recorded in the income tax provision related to the excess tax benefits upon vesting of the equity awards.

Unrecognized Tax Benefits

As of

March

31,

2017,

the Company had

$15.0

million of unrecognized tax benefits,

$3.8

million of which would affect its effective tax rate if recognized after considering the valuation allowance. As of

December

31,

2016,

the Company had

$14.4

million of unrecognized tax benefits,

$3.5

million of which would affect its effective tax rate if recognized after considering the valuation allowance.

Uncertain tax positions relate to the allocation of income and deductions among the Company’s global entities and to the determination of the research and development tax credit. It is reasonably possible that over the next

twelve

-month period, the Company

may

experience increases or decreases in its unrecognized tax benefits. However, it is not possible to determine either the magnitude or the range of increases or decreases at this time.

The Company recognizes interest and penalties, if any, related to uncertain tax positions in its income tax provision. As of

March

31,

2017

and

December

31,

2016,

the Company has approximately

$0.4

million and

$0.3

million of accrued interest related to uncertain tax positions, respectively, which were recorded in long-term income tax liabilities in the Condensed Consolidated Balance Sheets.