Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Pretax Income (Loss) from Continuing Operations

The components of the pretax income (loss) from continuing operations are presented in the following table (in thousands):

	Year Ended December 31,
	2017			2016
U.S. Domestic	$	(4,536	)	$	(29,898	)
Foreign		(38	)		(1,037	)
Pretax loss from operations	$	(4,574	)	$	(30,935	)

Components of (Benefit) Provision for Income Taxes from Continuing Operations

The components of the (benefit) provision for income taxes from continuing operations are presented in the following table (in thousands):

	Year Ended December 31,
	2017			2016
Current income tax (benefit) provision:
Federal	$	(102	)	$	(8	)
State		101			72
Foreign		3			—
Total current		2			64
Deferred income tax benefit:
Federal		(36	)		(4,269	)
State		—			(429	)
Total deferred		(36	)		(4,698	)
Total income tax benefit	$	(34	)	$	(4,634	)

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income (loss) from continuing operations as a result of the following differences:

	December 31,
	2017			2016
Federal statutory rate		(35.0	)%		(35.0	)%
Adjustments for tax effects of:
State taxes, net		(7.4	)%		(1.7	)%
Stock-based compensation		16.1	%		2.3	%
Foreign taxes		1.2	%		0.1	%
Tax law change		459.1	%		—
Fair market value adjustments		(92.1	)%		0.4	%
Other permanent adjustments		1.3	%		0.3	%
Tax rate adjustment		(19.1	)%		0.3	%
Uncertain tax positions		(4.9	)%		(0.1	)%
Other		21.8	%		0.9	%
Valuation allowance		(341.8	)%		17.5	%
Effective income tax rate		(0.8	)%		(15.0	)%

Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 are as follows (in thousands):

	December 31,
	2017			2016
Deferred tax assets:
Allowances and reserves	$	259		$	705
Accrued expenses		1,808			1,452
Inventory reserves		4,443			7,071
Net operating loss carryforwards		35,975			37,444
Property and equipment		1,249			2,730
Intangible asset		2,046			3,291
Stock-based compensation		1,542			1,766
Legal settlement		6,881			11,494
Goodwill		1,755			3,029
Income tax credit carryforwards		3,326			5,429
Total deferred tax assets		59,284			74,411
Valuation allowance		(44,389	)		(58,202	)
Total deferred tax assets, net of valuation allowance		14,895			16,209
Deferred tax liabilities:
Investment in foreign partnership		14,859			16,215
Total deferred tax liabilities		14,859			16,215
Net deferred tax assets (liabilities)	$	36		$	(6	)

Summary of Changes to Unrecognized Tax Benefits

The following table summarizes the changes to unrecognized tax benefits (in thousands):

	Year ended December 31,
	2017			2016
Unrecognized tax benefit at the beginning of the year		9,331			10,359
Additions based on tax positions related to the current year		(1,981	)		153
Additions based on tax positions related to the prior year		—			57
Reductions as a result of lapse of applicable statute of limitations		(551	)		(184	)
Reductions as a result of tax rate changes		(236	)		—
Reductions as a result of foreign exchange rates and other		(2,123	)		(1,054	)
Unrecognized tax benefits at the end of the year	$	4,440		$	9,331