Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consisted of the following components for the years ended December 31, 2015, 2014 and 2013 (in thousands):



	Year Ended December 31,
	2015		2014			2013
Current income tax expense:
Federal	$	—	$	237		$	(1,803	)
State	324		197			(316		)
Foreign	5,021		4,071			2,216
Total current income tax expense	5,345		4,505			97
Deferred income tax expense:
Federal	3,811		87			2,824
State	499		3			449
Foreign	3,010		(2,282		)	(3,926		)
Total deferred income tax expense (benefit)	7,320		(2,192		)	(653		)
Income tax expense (benefit)	$	12,665	$	2,313		$	(556	)

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended December 31, 2015, 2014 and 2013 differs from the amount computed by applying the U.S. federal income tax rate of 35% to pretax income (loss) because of the effect of the following items (in thousands):



	Year Ended December 31,
	2015		2014		2013
Tax expense at U.S. federal income tax rate	(6,886	)	16,371		(3,226	)
State income taxes, net of federal income tax effect	541		1,465		205
Effect of non-US operations	(306	)	(1,632	)	(644	)
Nontaxable contingent liability fair value changes and goodwill impairment	13,083		(14,334	)	3,828
Research and development credit	(422	)	(376	)	(1,046	)
Change in valuation allowances	5,173		850		607
Prior year provision to return adjustment	372		(172	)	—
Write-off of deferred taxes and tax receivables	858		—		—
Nondeductible expense and other	252		141		(280	)
Income tax expense (benefit)	12,665		2,313		(556	)

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax return reporting purposes. At December 31, 2015 and 2014, the Company’s deferred tax assets and liabilities consisted of the following (in thousands):



	December 31,
	2015			2014
Current deferred tax assets:
Reserves and allowances not currently deductible	$	—		$	1,858
Other	—			77
Total current deferred tax assets	—			1,935
Noncurrent deferred tax assets:
Inventory reserve	838			—
Other reserves and allowances	2,993			—
Income tax basis in excess of financial statement basis in intangible assets	4,267			5,235
Deductible stock-based compensation	4,615			4,740
Net operating loss carryforward	8,667			10,984
Tax credit carryforwards	2,099			1,338
	23,479			22,297
Valuation allowance	(6,500		)	(1,604		)
Total noncurrent deferred tax assets	16,979			20,693
Total deferred tax assets	16,979			22,628

Total current deferred tax liability:
Prepaid & other expenses	—			(116		)
Total current deferred tax liability	—			(116		)
Noncurrent deferred tax liabilities:
Prepaid & other expenses	(867		)	—
Fixed assets	(6,013		)	(4,931		)
Intangible assets	(22,411		)	(21,825		)
Total noncurrent deferred tax liabilities	(29,291		)	(26,756		)
Total deferred tax liabilities	(29,291		)	(26,872		)

Net deferred tax liability	$	(12,312	)	$	(4,244	)

Net current deferred tax asset	$	—		$	1,819
Net noncurrent deferred tax liability	(12,312		)	(6,063		)
Net deferred tax liability	$	(12,312	)	$	(4,244	)