Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of income (loss) before income taxes

	Year Ended December 31,
	2015		2014		2013
	(in thousands)
Income (loss) before income taxes:
United States	$	(4,344)	$	(12,946)	$	20,116
Foreign		(6,020)		(5,202)		(2,889)
Total income (loss) before taxes	$	(10,364)	$	(18,148)	$	17,227

Summary of provision (benefit) for income taxes

	Year Ended December 31,
	2015		2014		2013
	(in thousands)
Current provision (benefit):
Federal	$	82	$	(131)	$	3,306
State		73		193		541
Foreign		(112)		1,388		104
Total current provision (benefit)		43		1,450		3,951
Deferred provision (benefit):
Federal		(5,222)		(4,309)		2,254
State		(1,250)		(1,699)		227
Foreign		(1,148)		(2,891)		(1,067)
Total deferred provision (benefit)		(7,620)		(8,899)		1,414
Total provision (benefit) for income taxes	$	(7,577)	$	(7,449)	$	5,365

Schedule of reconciliation of the statutory federal income tax rate

	Year Ended December 31,
	2015		2014		2013
Statutory federal income tax (benefit)	(35.0)	%	(35.0)	%	35.0	%
State tax expense, net of federal tax benefit	(7.4)		(5.4)		2.9
Foreign income tax	(24.4)		1.8		0.3
Qualified production activities deduction	—		—		(3.3)
Research and development credits	(15.4)		(6.4)		(9.9)
ISO portion of stock options deductions	7.7		4.0		6.3
Other	1.4		—		(0.2)
Effective tax rate (benefit)	(73.1)	%	(41.0)	%	31.1	%

Summary of deferred tax assets and liabilities

	December 31,
	2015		2014
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	8,616	$	7,877
State income taxes		300		270
Inventory capitalization and reserve		5,365		6,843
Deferred revenue		584		864
Accrued payroll and benefits		1,793		1,571
Share-based compensation		10,125		8,437
Research and development credits		13,071		9,863
Alternative minimum tax		529		447
Accrued professional fees		987		568
Product return allowance		1,545		1,221
Accrued chargebacks		5,910		4,792
Bad debt reserve		253		67
Intangibles		3,370		3,861
Accrued for workers’ compensation insurance		1,035		864
Total deferred tax assets		53,483		47,545
Deferred tax liabilities:
Depreciation/amortization		15,065		15,649
Intangibles		5,430		4,753
Federal impact of state deferred taxes		3,380		2,910
Other		1,241		937
Total deferred tax liabilities		25,116		24,249
Valuation allowance		(923)		(3,862)
Net deferred tax assets	$	27,444	$	19,434

Schedule of unrecognized tax benefits

	December 31,
	2015		2014		2013
	(in thousands)
Balance at the beginning of the year	$	4,783	$	4,186	$	3,532
Additions based on tax positions related to the current year		812		655		766
Deductions based on tax audit settlement		—		—		(93)
Deductions based on statute of limitations		—		(58)		(19)
Balance at the end of the year	$	5,595	$	4,783	$	4,186