INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income (Loss) before Income Taxes

The following table presents domestic and foreign components of income (loss) before income taxes for the periods presented (in thousands):



	Year Ended December 31,
	2017			2016			2015
United States	$	194,239		$	1,679		$	(18,604	)
Foreign	(9,890		)	(4,964		)	(2,334		)
Total	$	184,349		$	(3,285	)	$	(20,938	)

Tax Provision

The income tax provision is composed of the following (in thousands):



	Year Ended December 31,
	2017			2016		2015
Current:
Federal	$	25,785		$	—	$	(10	)
State	5,069			35		370
Foreign	354			86		1,010
	$	31,208		$	121	$	1,370
Deferred:
Federal	$	(28	)	$	106	$	3,505
State	15			13		6,245
Foreign	296			1,145		842
	283			1,264		10,592
Total provision for income taxes	$	31,491		$	1,385	$	11,962

Reconciliation of Effective Income Tax Rate

The following table presents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented:



	Year Ended December 31,
	2017		2016		2015
Income tax at federal statutory rate	35.00	%	35.00	%	35.00	%
State tax, net of federal tax effect	3.57		21.29		4.59
Foreign income tax rate differential	0.50		(1.54	)	(10.03	)
Stock-based compensation	(4.83	)	10.50		(3.60	)
Income tax credits	(5.39	)	163.87		14.30
Change in valuation allowance	(30.24	)	(189.19	)	(96.18	)
Goodwill associated with Disposition	17.43		—		—
Meals and entertainment	0.24		(13.84	)	(2.63	)
Other non-deductible expenses	0.12		(6.16	)	(1.58	)
Benefit for tax only asset	—		—		4.99
Prior year deferred tax true-up	(0.12	)	(11.81	)	(0.57	)
Expiration of deferred tax benefit	—		(50.76	)	—
Other	0.80		0.47		(1.38	)
Effective tax rate	17.08	%	(42.17	)%	(57.09	)%

Schedule of Deferred Tax Assets and Liabilities

The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands):



	As of December 31,
	2017			2016
Deferred tax assets:
Reserves and others	$	10,869		$	13,382
Stock-based compensation	19,556			29,402
Contribution carryforward	—			11
Net operating loss carryforward	8,115			64,478
Tax credit carryforward	14,183			17,185
Gross deferred tax assets	52,723			124,458
Valuation allowance	(30,895		)	(92,191		)
Total deferred tax assets	21,828			32,267
Deferred tax liabilities:
Depreciation and amortization	(12,813		)	(30,140		)
Disposal of a business unit	(7,152		)	—
Total deferred tax liabilities	(19,965		)	(30,140		)
Net deferred tax assets (liabilities)	$	1,863		$	2,127

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized benefits is as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015
Balance at the beginning of the year	$	10,340		$	5,049		$	3,276
Increase (decrease) based on tax positions related to the prior year	667			1,381			(31		)
Increase based on tax positions related to the current year	7,209			4,131			1,804
Lapse of statute of limitations	(1		)	(221		)	—
Balance at the end of the year	$	18,215		$	10,340		$	5,049